Daystar Power Group Set to Receive $20 million Financing from the IFC

  • A $20 million financing proposal to off-grid power service provider Daybreak is yet to be approved by the IFC.

  • The IFC intends to provide $10 million from its own account and the other $10 million via a subordinated loan from the Canada-IFC Renewable Energy Program for Africa.
  • Daybreak currently has a total installed solar capacity of 8.1MW, with plans to increase this to 140MWp solar capacity by 2024.

The International Finance Corporation (IFC) is considering providing $20 million in financing to Nigerian off-grid power service provider Daybreak Power Solutions, a subsidiary of Daystar Power Group. The investment which is yet to be approved is expected to finance part of Daybreak’s $40 million Phase 1 capacity expansion programme. The IFC will provide  US$10 million from its own account, another US$10 million subordinated loan from the Canada-IFC Renewable Energy Program for Africa.

Read also: Daystar Power Raises $38m to Finance West Africa Expansion Plans.

Daybreak provides clean, reliable solar hybrid solutions to commercial and industrial (C&I) customers faced with inadequate supply from the grid infrastructure and/or heavily reliant on diesel for generation. Daybreak currently has a portfolio consisting of a total installed solar capacity of 8.1MWp across 156 sites. Daybreak wants to increase this to 140MWp solar capacity by 2024 via a 4-year capital expenditure program phased based on the funding being secured. Phase 1 deployment: 30MWp, Phase 2 deployment: 55MWp and Phase 3 deployment: 55MWp.

Daybreak’s parent company, Daystar Power, had earlier raised $38 million in Series B funding. The financing, the company says, will enable the expansion of operations in Nigeria and Ghana and allow it to enter other west African countries such as Côte d’Ivoire, Senegal, and Togo.

 

Listen to Olaedo Osoka, CEO West Africa; Daystar Power highlight the energy challenges businesses face and discuss how Distributed Energy Resources (DER) can improve productivity and lower energy costs.

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