Renewable energy services provider, Starsight Energy, and South African-based solar firm, SolarAfrica Energy, has announced their merger agreement, combining their strengths to become one of the continent’s leading solar players with a genuine Pan-African footprint to provide competitive, full-service renewable energy and energy efficiency solutions to the C&I sector
The merger, which is subject to standard regulatory approvals including anti-trust approvals, comes at an opportune time following favourable changes in South African renewable energy regulations. The merger will create the first truly Pan-African renewable energy services provider, amidst a global drive towards greener and cleaner energy sources, which is well positioned to serve an even wider range of clients with a comprehensive mix of renewable energy solutions that provides power security, cost savings and carbon reduction. The merged entity will comprise a portfolio of over 220MW of operated and contracted generation capacity, and 40MWh of operational battery storage, with an additional generation pipeline exceeding 1GW.
Alongside the merger, funds managed by AIIM have committed substantial further funding to the South African subsidiary of the merged entity, to progress the build-out of the contracted pipeline in the C&I wheeling market in South Africa, providing energy security and certainty of pricing to large C&I customers.
Starsight Energy was founded in 2015 and is backed by Helios and AIIM, a member of Old Mutual Alternative Investments. It offers reliable and sustainable energy and cooling solutions – on- and off-grid – to the C&I sectors, with market leading operations in East and West Africa with over 656 sites in Nigeria, Kenya and Ghana.
Founded in 2011, SolarAfrica has built up extensive experience in delivering state-of-the-art energy solutions through Power Purchase Agreements (PPAs) to businesses across Southern Africa. It has evolved from a specialist provider of rooftop solar photovoltaic systems to a full-service provider of capex-free, green energy solutions ranging from solar and battery storage options through to wheeling and electricity trading to the C&I market.
SolarAfrica has already positioned itself as a competitive player in the newly enabled power wheeling space, having recently signed up large blue chip customers. The group is now well positioned to service large power users with a lower cost electricity alternative from a recently developed centralised solar generation site, taking advantage of South Africa’s newly revised regulations permitting wheeling and self-generation of up to 100MW by private generators. In 2021, SolarAfrica was named the continent’s leading solar energy firm, scooping the Africa Solar Industry Association’s African Solar Company of the Year award.
Tony Carr, Starsight Energy’s group CEO, explained, “This merger demonstrates our joint commitment to expand our footprint across Africa. With SolarAfrica, the new combined group becomes one of the largest commercial providers of reliable and clean energy solutions to the commercial and industrial sector across the continent.”
“The merger will enable efficiencies across the group, ranging from procurement to funding, and further allow for the rollout of our proprietary technology platform across the continent. These efficiencies will assist the group in providing a unique and valuable offering, that takes customers on a green energy journey to solve their power struggles and enables a sustainable future for their businesses,” says David McDonald, SolarAfrica Energy co-founder and CEO.
The newly formed entity will comprise of 340 staff across multiple jurisdictions and create a combined shareholder group providing financial capacity to deliver renewable energy services across Africa.
Looking ahead, the two parties believe that their combined expertise, along with SolarAfrica’s energy solutions software platform, which enables its sales teams to customise energy proposals and produce accurate savings projections, will not only position the group as Africa’s leading provider of green energy solutions to commercial and industrial power users, but will also accelerate Africa’s transition towards a greater renewable energy mix.