Solar energy company Daystar Power has raised $38 million to support its expansion efforts. The amount was raised largely from development finance institutions to expand its operations across West Africa. It is reported that the latest series B funding was led by Denmark’s Investment Fund for Developing Countries, bringing Daystar Power’s equities to $48 million.
The funding round saw the presence of prominent French and other European investors. For example, French infrastructure investment vehicle STOA, French development finance institution Proparco backed by a European Union guarantee under the African Renewable Energy Scale-Up facility and Morgan Stanley Investment Management participated in the funding.
Grid power across the continent does not meet the needs of most countries. This is seen as a big opportunity for a host of solar companies to capitalise on and fill the market gap.
Daystar Chief Executive and co-founder Jasper Graf von Hardenberg, said in a statement, “We have seen a more than fiftyfold increase in power-as-a-service revenue over the last two years.” In Nigeria, for example, individual fuel-powered generators that are not connected to the grid have a capacity to provide four times as much electricity as the grid, media reports said.
The company is well established in solar solutions and it currently has 23 megawatts of installed power capacity. It provides hybrid and power solutions to businesses such as Nigerian banks and a Ghanaian steel company. That said, its clientele is quite diverse and active in Nigeria, Ghana, Togo and Senegal. It also has also established a representative office in Ivory Coast.