Nigeria’s Power-as-a-Service startup, Rensource, has raised $3.5 million to grow its renewable energy business. The startup has said that the money it has raised will be used to grow their team and expand their operations in Nigeria, moving into new territories such as Kano and Abuja.
Rensource’s bridging financing round led by Amaya Capital Partners. with participation from Omidyar Network and CRE Venture Capital.
“This investment further affirms the growing consensus that renewables-based distributed energy generation — taking power to the people — is the future of Nigeria’s power industry. Rensource is uniquely placed to lead this charge. We’re excited to welcome Amaya Capital and the Omidyar Network on this journey and are proud to be enabling Nigerians’ power independence,” says Anu Adasolum, General Manager of Rensource.
Rensource also hopes to use the funds to launch their B2B focused service that aims to enable businesses throughout Nigeria to leverage their infrastructure to pursue energy independence. This would be of interest to businesses in Nigeria because approximately 50% of the country lacks regular if any, access to reliable energy sources.
“Each investment we receive is an endorsement of our core belief that distributed power generation will be a critical element in solving the power problem in Nigeria. The social benefits and positive ramifications will be something to behold and we at Resource are proud to be playing our part in what could be a true energy revolution,” said Bola Ogidan, Chief Revenue Officer at Rensource.
Nigerian households and businesses spend an estimated $14 billion per year generating their own power using energy from diesel generators are neither affordable nor sustainable. Mini-grids and home solar PV systems represent a $9.2 billion a year market opportunity, saving Nigerians $4.4 billion in energy costs annually. The country’s Rural Electrification Agency (REA) plans to roll out 1,200 mini-grids to serve 200,000 households and 50,000 businesses.