How Nigerdock Cut its Energy Costs by 20% Every Month and Went Green By Adopting Solar Energy

June 4, 2024
Daystar Power

Located on Snake Island in Lagos, Nigerdock stands as a bustling hub for diverse businesses and industries. Describing the company’s scale, Temitope Odulate, the Facilities Director, elaborates, "Nigerdock sits on 252 hectares, making it a sizable presence on the island." Offering a range of services from terminal services to shipyard operations, Nigerdock plays a crucial role in West Africa's logistics network.

However, like many businesses in Nigeria, Nigerdock faced numerous challenges in powering its operations. In response to this pressing need, the company embraced solar power, driven by the necessity to address energy issues posed by traditional power sources and modernize its energy infrastructure.

Facing the diesel generator challenge

Before adopting solar energy, Nigerdock completely depended on diesel generators to power its operations. Odulate recalls, "At that time, Nigerdock was solely reliant on generators to power the island. The grid wasn't available until 2020, leaving us with no alternative. Grid availability was sporadic, and the soaring diesel costs only compounded our woes."

Given that Nigerdock has a 8MW load, this heavy reliance on generators,  strained its  financial resources and led to a negative impact on the environment  due to increased carbon emissions. Regular power disruptions and fluctuating diesel costs further complicated energy management for Nigerdock's leadership.

Moreover, the lack of a reliable grid exacerbated the situation, adding to the complexities of managing power supply for the free zone. It's worth noting that Nigerdock is responsible for providing stable power for its commercial tenants, which is critical to maintaining its business reputation.

How the shift to solar helped Nigerdock

The integration of solar power brought about a multitude of benefits and significantly reshaped Nigerdock’s self-generation.

Here's a quick breakdown:

Significant cost savings

The transition to solar power marked a significant milestone in cost-effectiveness and sustainability for Nigerdock. Odulate highlights the immediate financial impact of solar energy: "On average, solar displaces about 40% of our daytime energy consumption, which translates to 20% cost savings." This substantial reduction in energy costs bolstered Nigerdock's financial resilience and positioned it as a frontrunner in sustainable business practices within the region.
Reduction in CO2 emissions
Beyond financial savings, the adoption of solar energy also showed Nigerdock's commitment to the environment.

By reducing its reliance on diesel generators, Nigerdock succeeded in curbing its carbon footprint and mitigating its impact on the environment. Temitope Odulate emphasizes the significance of this initiative: "Solar energy slashed our CO2 emissions by about 2000 metric tons, which is quite significant in terms of emission reduction targets. Recognizing the critical importance of carbon emission reduction, we view this as a huge win."

Enhanced energy efficiency

Collaborating with Daystar Power, Nigerdock underwent a comprehensive audit to identify inefficiencies in its existing power setup.

Through this process, it became evident that Nigerdock had installed oversized generators, leading to excessive diesel consumption compared to its actual load. This inefficiency posed a significant challenge, prompting the need for a more streamlined and cost-effective energy solution.

Odulate elaborates, "Daystar's thorough energy audit highlighted the inefficiencies in our system. The team introduced us to automation and synchronized our system to ensure real-time switch-over, plus it meticulously analyzed our energy consumption patterns and right-sized our generators. Consequently, we were able to optimize our energy usage and reduce diesel consumption."

Nigerdock sets sights on a clean energy future

As Nigerdock looks ahead, its collaboration with Daystar sets the stage for further solar power integration and expansion. Odulate emphasizes the reliability and performance of Daystar's services, stating, "Daystar is on point in terms of when and how things need to be done. We'll continue to work with them because we've seen their performance, and it will only get better."

With solar-as-a -ervice provided by Daystar, Nigerdock is set to scale its clean energy initiatives, aiming to achieve 100% reliance on clean energy and eliminate dependence on generators. As Odulate expresses, "I'm looking forward to scaling up to have 100% clean energy and do away with dependence on generators."