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Daystar Power Signs Agreement with Abuja Electricity Distribution Company for Hybrid Solar System

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Representational image. Credit: Canva

In a significant move towards sustainable energy solutions, Daystar Power, a leading hybrid solar power solutions provider operating as part of the Shell Group, has entered a tripartite agreement with Abuja Electricity Distribution Company (AEDC) to deliver its inaugural hybrid solar energy and grid-connected power system for The Wood Factory, an Abuja-based furniture manufacturer.

The 594kWp solar plant and 600kWh battery storage system mark the first installation under this agreement, jointly developed by Daystar and the RMI (founded as Rocky Mountain Institute). This initiative comes to fruition under a feasibility study grant funded by the United States Trade and Development Agency (USTDA), with the aim of optimizing energy supply to Nigerian commercial and industrial (C&I) customers using distributed solar energy and grid power.

Under the terms of the agreement, Daystar will handle the financing, design, and installation of the hybrid solar solution to power The Wood Factory’s operations during peak daytime hours from 9 am to 3 pm. AEDC, in turn, will guarantee power supply for the remaining 18 hours outside peak solar generation, ensuring uninterrupted operations. The 600kWh battery storage system acts as a backup in the event of any grid disruptions, enhancing overall energy security.

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The Wood Factory, previously reliant on diesel generators and not connected to the grid, is expected to save an estimated 44% on its energy costs and reduce carbon emissions by 76% annually through this hybrid solar and grid-connected system.

The project stems from a comprehensive feasibility study funded by USTDA, focusing on Scaling Utility-Enabled Distributed Energy Resources for Nigerian Commercial & Industrial (C&I) Customers. The study, conducted jointly by Daystar and RMI, introduces a utility-enabled business model, facilitating the transition of C&I customers in Abuja and Lagos from diesel generators to a more sustainable energy mix of solar, batteries, and the national grid.

Victor Ezenwoko, Country Head, Nigeria and Ghana at Daystar Power, expressed excitement about the innovative interconnected solar installation, highlighting the collaboration with AEDC, USTDA, and RMI. He emphasized the potential for such partnerships to provide reliable and affordable power to Nigerian businesses, ultimately contributing to national decarbonization efforts.

Christopher Ezeafulukwe, Managing Director of Abuja Electricity Distribution Company (AEDC), emphasized the mutual benefits of collaboration between DisCos and solar energy providers. He sees this partnership as a win-win scenario, where businesses secure reliable power, DisCos increase grid connections and revenues, and solar developers scale their operations, contributing to national decarbonization efforts.

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Mohamed Akar, Director and General Manager of The Wood Factory, expressed enthusiasm about the transition to solar energy and the grid, considering it a positive shift for their business’s future.

This partnership signifies a pivotal step towards sustainable and reliable energy solutions for businesses in Nigeria, aligning with broader efforts to enhance the country’s power sector.


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