Daystar Power, a leading provider of hybrid solar power solutions to businesses in West Africa, today announced that it commissioned a 800kWp solar power system for UAC Foods. Installed for UAC’s dairy subsidiary, the solar solution was fully integrated into its existing power setup.
UAC Foods, a division of the eponymous NSE-listed conglomerate, incorporated renewable energy into its power generation mix for both financial and sustainability reasons. By integrating solar energy into its power setup, UAC aimed to reduce its dependence on diesel generators and the grid and increase cost savings.
Since December 2020, diesel prices have jumped 40% from NGN 200 to 280 per litre while industrial electricity tariffs for industrials have risen by ~40%. Solar energy is a low-cost and reliable alternative -- solar PV prices have fallen by 90% over the last ten years. In adopting solar energy, UAC Foods was also motivated to minimize its carbon footprint.
Daystar Power designed a bespoke solar solution for UAC Foods using its Solar-as-a-Solution model under which the company pays a flat tariff per kilowatt hour with zero upfront costs. For the installation, Daystar mounted 1496 units of 535Wp PV modules, on the roof of UAC Dairies Ikeja factory. The solar panels are connected to a remote monitoring system, allowing for preventive maintenance. The solar system will provide 50% of the factory’s daytime power consumption, reducing the use of diesel generators. With the new solar system, UAC is expected to save more than 30% on its current energy costs and offset 2,000 metric tons of CO2 over a ten-year period.
The Project Development Programme (PDP) of the German Energy Solutions Initiative, implemented by GIZ, helped facilitate the partnership between UAC Foods and Daystar Power. Not only did the PDP introduce both companies, it also performed key due diligence that ensured the project’s success. The PDP assessed the project’s financial and technical viability and provided essential energy demand data that informed the project design.
“We’re delighted that UAC Foods, just like an increasing number of Nigerian large corporations and manufacturers, is choosing renewable energy to power its business. We were able to commission this project in record time with the help and support from the PDP of the German Energy Solutions Initiative,” said Jasper Graf von Hardenberg, Daystar Power CEO and Co-founder.
“Bringing clean energy projects to closure can be a time-intensive process. With our research capacity and ties in the Nigerian business community, we help to shorten the sales cycle so that clean energy project developers can commission even more projects. We’re proud to play our part in driving clean energy in Nigeria while helping businesses save considerable energy costs,” Esther Ayegbajeje, Nigeria Country Representative, Project Development Programme (PDP) of the German Energy Solutions Initiative.