Daystar Power

completed

Founded in 2017, Daybreak Power Solutions Limited (“Daybreak” or the “Company”) is 100% owned Nigerian subsidiary of Daystar Power Group (“Daystar”) that provides solar PV, hybrid energy and storage solutions to Commercial and Industrial (“C&I”) customers predominantly in Nigeria and Ghana with subsidiaries in Kenya & Zambia and planned expansion to Togo, Ivory Coast and Senegal. The Company provides two distinct services; (i) power-as-a-service (PAAS), a hybrid system which entails the installation and operation of a comprehensive power supply utilizing the national grid, solar panels, batteries and/or generators and (ii) solar-as-a-service (SAAS) which entails installation and operation of a solar power plant at the clients site. Daybreak has three main customer segments (i) industrial for SAAS option; (ii) commercial for both SAAS and PAAS and (iii) agricultural for SAAS. The Company is currently owned by Sunray Ventures (46.7%), Verod Capital (38.2%), Avatown (11.7%) and other investors (3.7%) (the “Sponsor”). Daybreak focuses on innovation & technology and high-performance teams on construction and monitoring. The design, installation, operations and maintenance are done internally.  The Company conducts remote monitoring and management using a granular remote monitoring software.  The proposed investment is an IFC C Loan of up to US$20m to Daybreak to fund expansion of its operations in Nigeria and has a target to install 97 MWp (the “Project”) over the next three years. As of December 2020, Daybreak had 21 clients of which 10 are banking sector customers and with an aggregation of 8.4 MWp of solar PV spread across 162 sites, which makes it the 2nd largest C&I solar company in Nigeria. Daybreak currently has a 2021 pipeline of 8MWp with its existing banking clients and is expanding into the industrial sector where 20MWp will be installed in 2021. Daybreak’s key industrial clients include Nigerian Bottling Company and Shaldag Fish Farms.  The Project is expected to increase reliability and affordability of electricity for C&I customers who are currently facing unstable supply and will result in a reduction in GHG emissions and supports the decarbonization of the power sector, especially in Nigeria where an estimated 15GW of electricity is generated by diesel and petrol generators annually.