Nigeran off-grid solar company, Daystar Power has closed a $38-million Series B financing round led by Denmark’s Investment Fund for Developing Countries. In addition to the Danish Impact Investor, the deal was supported by French impact infrastructure fund STOA, development finance institution Proparco and Morgan Stanley Investment Management. Daystar Power has now raised a total $48 million includind funds raised in the previous round.
To date, Daystar Power has installed 23 MW and seeks to expand that capacity to more than 100 MW. The current funding is expected to accelerate the company’s growth in key markets such as Nigeria and Ghana and form a presence in Ivory Coast, Senegal and Togo. The funding is also expected to ease concerns over unreliable grids and polluting diesel generators as only
As reported by Blooomberg NEF, in July 2020, private players funded by developmental finance institutes dominate the decentralised solar market in West Africa. Nigeria is potentially the largest market for decentralised solar in West Africa as it reported and inflow of $374 million in the last decade international donors. The country had small-grid solar capacity of 2.8 MW in 2019, with 52 of the 59 projects solar-powered. Further, only 55 per cent of the nation’s population is connected to the national electricity grid with a large fraction of people facing frequent power cuts of up to 15 hours per day.