Shell acquires Daystar Power

Oil major Shell has made a significant move in expanding its global renewables portfolio by acquiring Daystar Power, a hybrid solar power provider. Victor Ezenwoko, the Chief Commercial Officer of Daystar Power Group in Nigeria, shed some light on the details of this acquisition in an interview with CNBC Africa. Ezenwoko mentioned that Shell now holds complete ownership of Daystar Power Group, but the management team will remain in place to continue the company's operations and expansion efforts. The deal signifies a shift towards energy transition, with a major player like Shell investing in renewable energy solutions. The renewable energy industry is witnessing a positive transformation as large energy companies, traditionally focused on oil and gas, are now venturing into the renewables sector. Ezenwoko highlighted the importance of such deals, as they bring in financial capacity and experience necessary to support the growth of renewable energy in Africa. This shift towards cleaner and more affordable energy solutions can help bridge the energy gap and serve underserved regions. Daystar Power Group had multiple interested parties for investment or acquisition, but they chose Shell due to the company's long-standing presence in Nigeria and Africa, shared vision for cleaner energy solutions, and financial capability. The partnership aims to support commercial and industrial clients by providing reliable and affordable renewable energy solutions at a larger scale. While the exact financial details of the deal were not disclosed, Daystar Power Group is planning substantial growth, with a projected increase in installed capacity by 135% in the current year and a target of 400 megawatts by 2025. This expansion underscores the potential for renewable energy in the market and the opportunities to replace traditional diesel generators with cleaner alternatives. In terms of market potential, Ezenwoko mentioned that the off-grid power market in Africa is still largely untapped, with significant growth opportunities. Daystar Power Group is looking to expand its footprint across the continent, focusing on West Africa initially and planning to enter Eastern and Southern African markets in the near future. Currently operational in Nigeria, Ghana, Togo, and Senegal, the company aims to serve leading corporates and commercial clients in these regions while eyeing further expansion. The vision to install 400 megawatts by 2025 reflects the company's commitment to leveraging renewable energy to address the energy deficit and contribute to sustainable development in Africa.