In a significant development, a study funded by the U.S. Trade and Development Agency (USTDA), has culminated in a landmark tripartite agreement involving Nigeria’s Daystar Power Group (Daystar), the Abuja Electricity Distribution Company (AEDC), and Nigerian company The Wood Factory.
The agreement is set to facilitate the creation of Nigeria’s inaugural hybrid solar energy and grid-connected power system, specifically designed to power The Wood Factory’s operations. This innovative system aims to serve as a clean and reliable alternative to the company’s diesel backup generators, contributing to cost reduction and a substantial decrease in carbon emissions.
USTDA Director Enoh T. Ebong remarked, “USTDA is at the forefront of deploying innovative infrastructure solutions in emerging economies and is highly effective because of the quality and strength of our partnerships.
This project is an excellent example of how businesses and communities can benefit from the clean energy transition.” Ebong expressed congratulations to the partners involved and anticipated the active participation of the U.S. private sector in the successful implementation of the project.
The USTDA-funded feasibility study, initiated in 2022, played a crucial role in developing technical designs, identifying deployment sites, and finalizing the project’s finance model for 18 solar-plus-storage minigrids. The hybrid solar and grid-connected system emerged as a pivotal outcome of the study, which followed a 2019 USTDA feasibility study grant to AEDC aimed at identifying viable business models for sustainable electrification projects. The studies were conducted by Colorado-based Rocky Mountain Institute.
Under the tripartite agreement, Daystar will supply power to The Wood Factory during peak daytime hours, with AEDC ensuring power availability during non-peak hours.
The project’s battery storage system is designed to guarantee a continuous power supply in the event of any grid disruptions. Anticipated benefits include an estimated 44% reduction in energy costs and a 76% annual decrease in carbon emissions for The Wood Factory.
