Daystar Power Unveils Tripartite Agreement to Deliver Nigeria’s First Solar-Grid Hybrid System for The Wood Factory

January 19, 2024
Daystar Power

The Wood Factory will undergo a transformative energy shift with the Daystar Power and Abuja Electricity Distribution Company (AEDC) collaboration, switching from diesel generators to a hybrid solar and grid power system. Anticipated benefits include a 44% reduction in energy costs and a 76% annual decrease in carbon emissions.

ABUJA 19 January 2024 - Daystar Power (“Daystar”), a leading hybrid solar power solutions provider for businesses and industrial manufacturers in Africa operating as part of the Shell Group, has signed a tripartite agreement with Abuja Electricity Distribution Company (AEDC) to deliver its first hybrid solar energy and grid-connected power system for Abuja-based furniture manufacturer The Wood Factory. The 594kWp solar plant and 600kWh battery storage system was the first installation to reach close and was jointly developed by Daystar and the RMI (founded as Rocky Mountain Institute) under a feasibility study grant funded by the United States Trade and Development Agency (USTDA), to optimize energy supply to Nigerian commercial and industrial (C&I) customers using distributed solar energy and grid power. 

Under the agreement, Daystar will finance, design, and install the hybrid solar solution to power The Wood Factory’s operations during peak daytime hours from 9 am to 3 pm. AEDC will guarantee power supply for the 18 hours outside peak solar generation, ensuring uninterrupted operations. The 600kWh battery storage system (BESS) will act as a backup in case of any grid disruptions, further enhancing energy security. The Wood Factory, previously not connected to the grid and relying solely on diesel generators to run its operations, will save an estimated 44% on its energy costs and reduce its carbon emissions by 76% annually.

The hybrid solar and grid-connected system emerged from a comprehensive feasibility study, funded by USTDA, aimed at Scaling Utility-Enabled Distributed Energy Resources for Nigerian Commercial & Industrial (C&I) Customers. The study, conducted jointly by Daystar and RMI, introduced a new utility-enabled business model to enable C&I customers in Abuja and Lagos to transition from polluting diesel generators to a more sustainable energy mix of solar, batteries, and the national grid. Under this model, Daystar partners with distribution companies in Nigeria (“DisCos”) to guarantee power supply during fixed hours while providing solar power during peak daytime hours. Manufacturers and businesses benefit from lower energy costs, energy security, and lower carbon emissions. DisCos stand to increase their revenues by facilitating more grid connections. 

“We’re delighted to announce this innovative interconnected solar installation in partnership with AEDC. This project wouldn’t have been possible without the support of our partners, USTDA and RMI. Working together with DisCos, we can provide reliable and affordable power to Nigerian businesses which will save on energy costs to reinvest in their operations. And, it is just the beginning; we are looking forward to developing more hybrid solar projects for C&I customers in partnership with DisCos,” said Victor Ezenwoko, Country Head, Nigeria and Ghana at Daystar Power. 

“This partnership is a testament to how DisCos and solar energy providers can closely collaborate for everyone’s mutual benefit. Nigerian businesses secure a reliable source of power; DisCos see an uptick in grid connections and revenues, and solar developers can scale their operations, contributing to national decarbonization efforts. It's a win-win scenario for everyone. We firmly believe that fostering partnerships like these can play a pivotal role in revitalizing Nigeria's power sector,” said Christopher Ezeafulukwe, Managing Director of Abuja Electricity Distribution Company (AEDC). 

“We’re thrilled that we’ll soon be switching to solar energy and the grid to power our factory. For many years, we’ve only operated on diesel generators, which is hardly sustainable or affordable. We believe that the future of our business has become brighter with this new partnership,” said Mohamed Akar, Director and General Manager of The Wood Factory. 



Daystar Power is a leading off-grid power service provider, offering hybrid power solutions to commercial and industrial businesses in sub-Saharan Africa. Daystar Power’s solutions “Solar-as-a-Service” (100% solar power) and “Power-as-a-Service” (hybrid power solutions with battery storage) provide clean and reliable power while significantly reducing clients’ overall power costs.

Daystar Power’s clients pay a flat monthly fee or a variable tariff (per kilowatt hour) for premium power services, which include a power audit and assessment of energy needs, a bespoke proposal, installation, and full operation & maintenance. Clients do not incur any capital expenditure and do not pay up-front costs. By outsourcing the management of their power systems, Daystar Power clients can focus more on running their core businesses.

Founded in 2017, by the African venture builder Sunray Ventures, Daystar Power counts the region’s leading industrial and commercial companies among its client base and is active in Nigeria, Ghana, Côte d’Ivoire, Senegal, Togo, Tanzania, and South Africa. With more than 400 projects completed in seven countries, Daystar has 100MW of power-generating assets. Daystar Power is part of the Shell Group.

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