Daystar Power, a hybrid power company, announced that it has secured a $20 million facility from International Finance Corporation (IFC). IFC is providing the loan to Daystar Power’s Nigerian subsidiary to invest in hybrid renewable energy systems.
The company recently raised $38 million in January 2021 in a series B round led by the Investment Fund for Developing Countries (IFU), the Danish development finance institution (DFI). It got $4 million from SunFunder in 2020 and a $10 million investment from Verod Capital Management and Persistent Energy Capital LLC in 2019. So it has so far raised over $68 million since inception.
Founded in 2017 by Jasper Graf von Hardenberg and Christian Wessels, Daystar Power is a provider of hybrid solar power solutions to businesses in West Africa. They founded Daystar Power to help solve the energy crisis facing businesses with solar power in Africa.
The IFC investment is structured as a $10 million subordinated loan from the Canada-IFC Renewable Energy Program for Africa and a $10 million local currency loan from IFC. Daystar is also working with the Canadian-funded IFC program Energy2Equal to close gender gaps and increase women’s participation in the renewable energy sector with a focus on leadership roles and technical positions.
Daystar Power intends to increase its installed solar power capacity to 140MW by 2024, growing its client base in the financial services, manufacturing and agricultural sectors. The company currently manages and operates 150 power installations in Nigeria.
“This facility is a major milestone for us. The funds will allow us to grow our installed capacity of solar projects and serve more Nigerian businesses in need of clean and affordable power. But we gain more than just capital. IFC brings a wealth of in-depth knowledge of renewable energy projects and project finance in emerging markets. We’re delighted to work with them,” said Jasper Graf von Hardenberg, CEO and Co-founder of Daystar Power.
