For their business models to work, our C&I and PU companies have one key requirement: They must be able to provide their product or service to their customers at a lower cost than competing baseline technologies. This is the only way their target customers will switch their source of power; and hence the reason why it is essential for us to calculate total cost savings when assessing our impact.
Reducing operating costs in Nigeria
One of Daystar Power’s clients is a leading commercial African bank, with a network of more than 600 branches and service outlets, across 12 countries and 31 million customers. Daystar Power has since partnered with the bank, to support the bank’s expansion by reducing power operating costs of its branches in Nigeria and across the continent. This partnership today features:
- Operating power cost savings of over 20%
- Deployment of over 1.2MW solar solutions across 47 branches, with a target to power 50% of the branch network with renewable energy
- Solar generation of over 732 MWh which led to displacement of over 400 tonnes of CO2 and 221,970 liters of diesel. This translates to ~$125,000 saved between Q1 2019 till date.
For commercial banks operating in Nigeria, power serves as the second largest operating cost item on their balance sheet. Following a recent acquisition by our client, it became imperative for the institution to significantly cut down costs where possible to enable it retain its staff strength and bolster continuous growth. By reducing this cost and outsourcing their power services, the bank has been able to focus on it’s core banking operations, reinvest saved costs, and rely on the Daystar Power 99% uptime guarantee to enable seamless transactions.
At the end of 2019, the client was also able to utilize a portion of this cost savings towards the provision of a solar system for a medical foundation in Nigeria.