Read the full original article here from Daystar
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).
