Arlington, VA – A study funded by the U.S. Trade and Development Agency (USTDA) has resulted in a tripartite agreement between Nigeria’s Daystar Power Group (Daystar), the Abuja Electricity Distribution Company (AEDC), and Nigerian company The Wood Factory to develop the country’s first hybrid solar energy and grid-connected power system, which will help power The Wood Factory’s operations. The system will provide a clean and reliable alternative to the company’s diesel back-up generators, cutting costs and reducing carbon emissions.

“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,” said Enoh T. Ebong, USTDA’s Director. “We congratulate our partners on this milestone and look forward to U.S. private sector participation in the successful implementation of this project.”

The USTDA-funded feasibility study, which commenced in 2022, helped develop the technical designs, select sites for deployment, and finalize the project’s finance model for 18 solar-plus-storage minigrids. The hybrid solar and grid-connected system emerged as a key outcome of the study, which was preceded by a 2019 USTDA feasibility study grant to AEDC to identify viable business models for sustainable electrification projects. Colorado-based Rocky Mountain Institute carried out both studies.

Under the tripartite agreement, Daystar will power The Wood Factory’s operations during peak daytime hours, with AEDC guaranteeing power during non-peak hours. The project’s battery storage system will ensure continuity of power in case of any grid disruptions. USTDA’s partners anticipate that the project will save The Wood Factory an estimated 44% on its energy costs and reduce its carbon emissions by 76% annually.

More information on the agreement can be found in this Daystar press release.

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The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority infrastructure projects in emerging economies.  USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.

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