Shell’s solar subsidiary, Daystar Power, is expanding significantly into South Africa, owing to the country’s increasing power shortages. The move could make South Africa Daystar’s largest market, with the company planning to deploy up to 120 megawatts (MW) of solar capacity by 2025. This strategic expansion comes as Daystar Power establishes a presence in Johannesburg, less than a year after being acquired by Shell.
In response to the escalating power crisis in South Africa caused by insufficient supply from state-owned utility Eskom, demand for alternative energy solutions such as Daystar’s solar offerings is increasing. This surge is exacerbated by the frequency of power outages. Wendy Green, the newly appointed head of Daystar South Africa, emphasised the economic impact of the power crisis in an interview, recognising this pressing need. “There is such a dire need in South Africa with load-shedding and the impact it is having on the economy,” she emphasised.
Wendy Green expressed Daystar’s growth strategy, drawing on her experience in energy projects with South African entities such as Exxaro Resources and Sasol. She emphasised the company’s organic growth objectives, which include opening an office in Tanzania. Green, on the other hand, stated that Daystar remains open to acquisition opportunities in order to accelerate growth. Notably, Daystar Power made history by becoming the first African power company to be acquired by Shell. Daystar, which was initially focused on West Africa, is now strategically diversifying its presence and operations.
Daystar Power hopes to contribute significantly to Africa’s renewable energy landscape by constructing 400 MW of solar capacity across the continent by 2025. Wendy Green stated that the company’s expansion plans are in line with this broader goal. Daystar’s core offerings include the installation of solar power systems, as well as battery and generator integration. Typical installations range up to 15 MW, with excess power capable of being sold to municipalities or energy traders.
Daystar Power’s strategy aims to attract large-scale, bankable commercial and industrial customers, capitalising on these industries’ significant energy consumption. “Approximately 75% of power consumed on the continent is actually done in the commercial and industrial sector,” Wendy Green explained. This emphasis on high-impact users demonstrates Daystar’s commitment to meeting critical energy needs while also driving long-term economic growth.
Finally, Shell’s Daystar Power is strategically positioning itself in South Africa’s energy landscape to address the country’s severe power shortages. Daystar’s expansion aligns with its larger continental target of 400 MW, with ambitious goals of delivering 120 MW of solar power by 2025. Daystar hopes to have a positive impact on both the energy crisis and the South African economy by capitalising on the commercial and industrial sectors. This expansion represents an important step forward in Shell’s commitment to sustainable energy solutions in Africa.
