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Leading solar energy providers in Africa, Starsight Energy and SolarAfrica, merged to become one of the largest commercial and industrial (C&I) solar companies in the continent. The merged group will accelerate its expansion in eastern, southern, and western Africa, and is also planning for pan-African diversification.
The Starsight Energy/SolarAfrica alliance is backed by Helios Investment Partners and African Infrastructure Investment Managers (AIIM), a member of Old Mutual Alternative Investments. The group now comprises a portfolio of over 220 MW of operated & contracted renewable energy capacity and 40 MWh of battery energy storage, along with an additional pipeline exceeding 1 GW.
The merging, which has yet to be approved by the relevant authorities, has been welcomed by investors. AIIM has committed to providing R1.25 billion ($69.5 million) of equity and shareholders’ funds to the merged entity.
The merging aims to accelerate the development of the contracted portfolio in the C&I transit market, providing clean energy and price certainty to large electricity customers. The merged entity intends to gain a strong foothold in the C&I segment in a global context marked by an energy crisis due to the sanctions imposed against Russia after the Ukraine invasion.
Starsight Energy, founded in 2015, is the first clean energy company in Nigeria to secure carbon credit accreditation, certified by the Verra Verified Carbon Standard (VCS) program. The company offers on- and off-grid renewable energy and cooling solutions to the C&I sectors, with market-leading operations in eastern and western Africa.
SolarAfrica, founded in 2011, provides service to large power users in South Africa with a lower-cost electricity alternative from a recently developed centralized solar generation site. The company was awarded ‘African Solar Company of the Year’ last year.
Energy producers in several African countries, especially south of the Sahara, are using fossil fuels as an alternative to power cuts. With the rise in electricity prices, companies must focus on solar energy, which is cleaner, cheaper, and more convenient to install and operate.