AEDC signs tripartite deal to deliver uninterrupted power solution in Abuja

The Abuja Electricity Distribution Company (AEDC) has reinforced its position as a leading provider of integrated power solutions with the signing of a tripartite agreement with Daystar Power Solutions Limited (Daystar Power) and The Wood Factory Limited (Wood Factory), one of the country’s leading furniture manufacturers. This collaboration will pioneer the delivery of the first grid-connected and solar hybrid power solution for commercial and industrial customers in Nigeria. 

The new grid-connected and solar hybrid power solution is a continuation of AEDC’s efforts to provide sustainable power solutions for communities across Nigeria. In November of 2023, AEDC and its strategic partners successfully launched the first interconnected mini-grid power solution for communities in Nigeria in Toto, Nasarawa State.

Under the new agreement, AEDC will provide a guaranteed 18 hours of reliable electricity to Wood Factory,, by interconnecting its facilities with AEDC’s power infrastructure. Meanwhile, Daystar Power will provide an additional six hours of solar-powered electricity to Wood Factory, further improving its energy security and reducing its carbon footprint. 

The integrated power solution being implemented for Wood Factory is anticipated to bring about significant savings in energy costs, as well as a significant reduction in carbon emissions. According to estimates, the company’s energy costs are expected to be reduced by 44 per cent annually, while the overall carbon emissions will be reduced by a remarkable 76 per cent.

The innovative value proposition being offered under the agreement is aligned with AEDC’s transformative strategic vision of redefining its customers’ experience by delivering reliable and sustainable electricity supply to both existing and new customers, including underserved and unserved customers.

Commenting on the development, Christopher Ezeafulukwe,managing director and chief executive Officer of AEDC, stated “We are excited about the great opportunities that the transformation and turnaround of AEDC is giving us to serve our customers, both new and existing, in more delightful ways. This project is a product of our consistent questioning of the status quo in the resilient push of our conviction and belief in using diversified energy sources to serve our customers better, while closing the supply gap in our market.”

According to Ezeafulukwe, the implementation of the previous integrated power solution has already demonstrated the effectiveness of such partnerships in serving the unserved communities within AEDC’s network. He stated that the latest agreement, which focuses on serving industrial and commercial customers, represents another significant step towards achieving the company’s goal of providing reliable and sustainable electricity to all customers within its network. He also emphasised the importance of such partnerships in adding value to the Nigerian electricity market, which is currently facing significant challenges.

Jasper Graf von Hardenberg, CEO of Daystar Power, expressed enthusiasm for the partnership and stated that the innovative interconnected solar installation will enable the company to provide reliable and affordable power to Nigerian businesses. He noted that this will not only improve the operations of businesses, but also allow them to save on energy costs and reinvest those savings into their operations.

“Our partnership with AEDC supports this position. It is just the beginning; we are looking forward to developing more hybrid solar projects for C&I customers in partnership with the likes of AEDC,” he said. 

Mohamed Akar, director and general manager of The Wood Factory, noted that the company is excited to transition from self-generated supply to an integrated power supply solution provided by AEDC and Daystar. 

Akar added, “We’re thrilled that we’ll soon be switching to a reliable integrated power solution to power our factory. For many years, we’ve operated on diesel generators, which is hardly sustainable or affordable. We believe that the future of our business has become brighter with this new partnership with AEDC and Daystar.”