Shell bets on solar energy with Daystar Power acquisition

The provider of hybrid solar power solutions will be integrated into the mobility company’s portfolio in the African market.

Daystar Power, a West African provider of hybrid solar power solutions to commercial and industrial businesses, announced its acquisition by Shell. The mobility company aims to deliver carbon emission reductions and power cost savings to C&I businesses across Africa thanks to its latest transaction, subject to regulatory approvals.

The solar energy company’s co-founders and management team will continue to grow its operations in its key West African markets, while expanding its presence to other African countries in East and Southern regions of the continent. Daystar Power targets to increase its installed solar capacity to 400MW by 2025 to become one of Africa’s leading providers of solar power solutions for commercial and industrial businesses.

“This deal marks our first power acquisition in Africa and a fundamental step for Shell in growing our presence in emerging power markets. We have had a long and established presence in West Africa and with Daystar Power, we are taking our first steps into the renewable power space,” said Thomas Brostrøm, Executive Vice-President of Renewable Generation at Shell.

According to a report by the Reuters agency, Shell will spend between $2 billion and $3 billion in renewables and energy solutions in 2022.

“We have seen booming demand for solar energy in the African markets where we operate. That has been reflected in our growth: we are on-track to increase our installed solar capacity by 135% in 2022. As part of Shell we will be able to execute our mission even faster to deliver carbon emission reductions and power cost savings to businesses across Africa,” added Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power.

Currently, Daystar provides off-grid power to clients in Ghana, Nigeria, Senegal and Togo, from its headquarters in Lagos. The firm offers solar and hybrid power solutions with battery storage with approximately 300 power installations with solar capacity of 32 megawatts.