by Oluchi Ubazue | Dec 2, 2024 | Announcements, Blog, News
Radio France Internationale
By :Charlotte Cosset
“ Everyone sees the problem, but it’s hard for people to imagine that there’s a solution,” Bimbola Adisa observed. So, he decided to take the bull by the horns about fifteen years ago. One of the major problems on the continent is the loss of kilowatt hours produced. “ We know that about 35% of production is lost. So we created a system that allows us to know where this 35% goes,” he explains. Because on the continent, population growth and the lack of information on the ground complicate the task. “ We don’t have a good map of the urban layout or addresses. In the event of a power outage, we don’t even know where to look. So we created a very, very basic map that shows every building, every pole, every transformer. So, in the event of a power outage, you know exactly where you have to go to get it repaired,” explains the entrepreneur.
His solution has already been successfully tested in Nigeria and Ghana, he highlights, assuring that power losses have gone from 35% to 20%. ” As a result, the electricity services are more efficient, and therefore, they can recover revenues and reinvest in the network, Bimbola Adisa was able to observe. If they are not efficient, they cannot replace their equipment, they cannot reinvest, and the service ends up degrading. In Ghana, revenues have increased by almost 70%, losses on the network have been reduced, and the electricity supply is simply more stable. “
Developing a profitable ecosystem
Proparco, a subsidiary of AFD, has taken a stake in the latest fundraising for the Nigerian start-up Beacon Power Services. Electrification is one of its priorities, and its need is enormous. A sector that nevertheless attracts few confirms Jean Benoît du Chalard, head of investment at Proparco. ” It is difficult for many reasons. The first is that everything related to energy generally requires a lot of capital. These are very large sums that must be deployed, especially to make up for a delay,” he emphasizes. Investments are needed in various forms for additional electrical capacities, for a change of equipment generation, for innovative solutions, for the improvement of networks, or for the development of electrification in rural areas.
” It’s an entire ecosystem, if you will, on which it is appropriate to intervene in a coherent, complementary way, to be as effective as possible,” insists Jean Benoît du Chalard. The fear of investing in a sector that is not very profitable, or even loss-making, can also scare investors. ” Yes, of course, but we also have counter-examples of projects that generate a certain profitability in this sector,” assures the expert. ” The question is certainly that of the overall financial balance of the electricity sectors. ” And with the Beacon Power Services project, Proparco is convinced that it holds one of the keys to the solution.
Beacon Power Services hopes to expand its activities to six new countries soon. Bimbola Adisa is working on a new version of its software, using drones and artificial intelligence in particular, in order to move from a simple monitoring system to a control system capable of remotely redirecting electrical flows.
by Oluchi Ubazue | Nov 7, 2024 | Announcements, Blog, News
Accra, November 7, 2024 – Beacon Power Services (BPS), an energy tech company providing data and grid management solutions to help Africa’s power sector distribute electricity more efficiently, today announced the closing of a Series A financing round for an undisclosed amount. The round was led by Partech, with participation from Finnfund, Gaia Impact, Proparco, and previous investors Kaleo Ventures and Seedstars Africa Ventures. Additional investors in this round include Clermount, Global Brain its CVC partner JGC MIRAI Innovation Fund, and On.Capital. Clermount acted as a financial advisor to Beacon Power Services in this transaction. The funding will enable BPS to enhance its product offerings, support growth in its current operations, and expand into new markets across Eastern and Southern Africa.
Africa’s power grids face significant challenges, with utilities struggling to provide consistent service due to outdated infrastructure and unreliable data. BPS is transforming how African utilities manage the grid by providing data-driven solutions specifically designed to meet the unique needs of the continent’s power sector.
CAIMS (Customer and Asset Information Management System) is an AI-enabled digital mapping (GIS) and address platform that helps utilities gather and organize data more effectively. This allows utilities to make smarter, data-driven decisions and deliver better service to millions of customers. ADORA offers real-time grid monitoring and control, helping utilities enhance operational efficiency and manage their power distribution more effectively to reduce outages. BPS products have already led to significant growth in Ghana, where BPS helped the Electricity Company of Ghana (ECG) fully digitize its operations, delivering reliable power to more than five million customers, while doubling revenue in just two years. With the Series A funding, BPS plans to continue enhancing its product offerings while expanding across the continent to address Africa’s grid challenges more effectively.
“With an exceptional track record in transforming grid management for utilities in Nigeria and Ghana, Beacon Power Services has established itself as a leader in addressing Africa’s energy challenges through data-driven solutions,” said Cyril Collon, General Partner at Partech. “We believe in the potential of African founders to solve the continent’s most pressing issues. BPS embodies the type of company our Partech Africa Fund II was created to support. We look forward to partnering with BPS as they scale their operations and increase their impact across Africa.”
“We are thrilled to invest alongside Partech to support the pan-African development of BPS. Indeed, BPS’s goals align with Proparco’s VC mandate to support innovative start-ups on the continent. Through its sophisticated solutions, BPS provides a tangible answer to the major issue of electrical grid efficiency and is a good example of the private sector’s ability to tackle critical issues for development. Hence, we are very enthusiastic about this partnership which also highlights AFD group’s long-standing support of African utilities”, declared Fabrice Perez, Head of Proparco’s VC division.
“We are at the forefront of transforming Africa’s energy infrastructure through advanced software that enables utilities to deliver more reliable electricity, optimize their operations, and decrease reliance on diesel generators. Central to our approach is providing real-time insights and actionable intelligence to utility companies across the continent. Energy challenges faced, especially in urban centers, cannot be resolved without the right data, which is the foundation of all our solutions,” said Bimbola Adisa, Founder & Chief Executive Officer of BPS.
Since its seed round in 2022, BPS has expanded significantly, now employing over 200 people across Ghana, Kenya, Nigeria, Zambia, and the U.S. This growth highlights the company’s commitment to addressing Africa’s energy challenges through a global team and scalable, data-driven solutions. As BPS continues to grow, it is prioritizing enhancements to its operational and R&D capabilities. With an impact on over 50 million consumers and businesses and more than 1 billion grid data points processed each day, BPS is well-positioned to drive a sustainable energy future across Africa.
Beacon Power Services is an energy tech company helping Africa’s power sector distribute electricity more efficiently with its data and grid management solutions. | Contact: info@bpsafrica.com
About Partech
Partech is a global tech investment firm headquartered in Paris, with offices in Berlin, Dakar, Dubai, Nairobi, and San Francisco. Partech brings together capital, operational experience, and strategic support to back entrepreneurs from seed to growth stage. Born in San Francisco 40 years ago, today Partech manages €2.5B AUM and a current portfolio of 220 companies, spread across 40 countries and 4 continents.
About Proparco
For over 45 years, Proparco, a subsidiary of the Agence française de développement group, has been working alongside private-sector players to build a fairer, more sustainable world. With an international network of 23 local offices, Proparco works closely with its partners to build sustainable solutions to environmental and social challenges in Africa, the Middle East, Asia, and Latin America. Proparco has sector-specific expertise, and a diversified range of financial tools adapted to the different stages of a company’s development.
Further information: http://www.proparco.fr | @Proparco | LinkedIn
by Oluchi Ubazue | Sep 19, 2024 | Blog
The impact of global warming on Africa has been devastating, costing Africa up to 5% of its economic output. This has been particularly tough for a continent already struggling to meet its population’s basic needs. Urgent action is necessary to prevent the situation from worsening.
One of the sectors most vulnerable to climate change is Africa’s power sector. This is due to its heavy reliance on hydropower, which is sensitive to changes in rainfall patterns. Climate change is leading to more extreme weather events, such as droughts and floods, which can disrupt hydropower production.
A prime example is the Kariba Dam in Zimbabwe and Zambia, a major source of hydroelectric power in southern Africa, which has been adversely affected by recent droughts, leading to reduced electricity generation.
Moreover, climate change is increasing the frequency and intensity of heatwaves, resulting in higher demand for electricity and putting strain on power grids. In some cases, heat waves can even cause power outages.
Climate change is exacerbating challenges in Africa’s power sector, such as limited access to electricity in many parts of the continent. Extreme weather events can damage power infrastructure, leading to power outages and service disruptions, making it even more challenging for African countries to achieve universal access to electricity.
The impact of climate change on Africa’s power sector extends beyond electricity availability to affecting the cost of electricity. As the cost of adapting to climate change rises, the cost of producing electricity will also increase, potentially hindering the development goals of African countries.
It is evident that Africa needs to invest in climate-resilient power infrastructure, which will require significant financial resources. Unfortunately, Africa is only receiving a fraction of the $100 billion promised in global climate finance.
Beacon Power Services offers advanced solutions to enhance energy efficiency and grid reliability, improving stability and revenue protection for African utilities. These solutions also help reduce the impact of climate change on Africa’s power supply, making energy more dependable and sustainable.
As leaders prepare for COP29 in Baku, they need to devise a plan to help Africa adapt to climate change. This will require a significant increase in climate finance and innovative solutions.
The future of Africa’s power sector is at stake, and urgent action is needed to address the challenges posed by climate change.
by Ken Silverstein | Sep 11, 2024 | Blog, News
The landscape of climate tech in Africa is evolving rapidly, with a growing focus on solutions that not only mitigate environmental impact but also drive economic growth. However, the sector faces significant hurdles, including a lack of follow-on capital and the need for long-term strategic support. As early-stage venture capitalists, our role is to identify and scale solutions that are not only economically viable but also capable of attracting further investment from other VCs, private equity players, and impact investors.
At Seedstars Africa Ventures, our investment philosophy matches financial returns to significant climate impact. We believe investing in climate oriented companies creates value for key stakeholders: the customers, investors and quite importantly, the planet. We are dedicated to supporting African innovative solutions in tackling critical global challenges. Climate change is at the forefront of these challenges, and we are committed to supporting ventures that mitigate its effects by providing scalable and impactful solutions that have sustainable exit opportunities.
A standout example of this approach is our lead investments in Beacon Power, where we’ve been able to support long term growth with capital, co-investors, senior staff recruitments, business development, and global corporate partnerships in the electricity space to help them solve global challenges.
⚡ Beacon Power Services: Leading Access to Clean and Reliable Energy
In Africa, unreliable grid connections are a daily challenge for both consumers and businesses, disrupting essential activities and stifling economic growth. Despite the need for more reliable and renewable energy, up to 50% of grid electricity is lost in transit, leading to significant financial losses and leaving many regions with limited access to power. As a result, millions rely on polluting diesel generators or costly solar panels to meet their energy needs.
Beacon Power Services (BPS) is transforming the energy landscape by unlocking the potential of Africa’s existing grid infrastructure. Their innovative technology enhances energy efficiency and grid stability, increasing access to tariffed electricity and reducing dependence on fossil fuels. By improving grid efficiency, BPS is empowering utilities across Africa to invest in new infrastructure, making a tangible impact on the continent’s energy future.
Currently partnering with five utilities and reaching over 60 million consumers, BPS exemplifies how climate tech can deliver scalable, real-world solutions. Their approach not only drives environmental benefits but also offers strong financial returns, creating value for both utility companies and end-users. Seedstars Africa Ventures has supported BPS by securing funding over several rounds, facilitating carbon reduction calculations, and fostering major partnerships with global corporations. Additionally, we’ve helped onboard like-minded investors to fuel the next phase of growth.
Investing in Africa’s Sustainable Future
Among our other portfolio companies, our investment in Beacon Power Services underscores our belief that climate tech is not just about mitigating risks—it’s about creating opportunities. By supporting these pioneering companies, we are driving meaningful change across the continent, proving that it is possible to achieve both environmental sustainability and economic growth.
At Seedstars Africa Ventures, we are proud to support these pioneering companies and their journey towards a sustainable, greener future. As we continue to invest in groundbreaking solutions, we remain focused on creating significant environmental and economic impact.
Here’s to investing in a better, cleaner tomorrow!
#ClimateTech #Sustainability #Africa #ImpactInvesting #GreenEnergy #SeedstarsAfricaVentures
by Oluchi Ubazue | Aug 9, 2024 | Blog
The 9th ECOWAS Regional Electricity Regulatory (ERERA) forum, held in Accra, brought together regulators, operators, and government representatives from across the ECOWAS countries. The central theme—“Electricity Trade Security in the ECOWAS Region”—underscored the critical need for cross-border cooperation and alignment of national policies with regional frameworks. Let’s delve into the key takeaways from this forum:
- Regional Electricity Policy Alignment for Seamless Cross-Border Trade: Participants all agreed on the importance of aligning national electricity policies with regional standards to facilitate seamless cross-border electricity trade. The goal of this alignment is to create fair competition and efficient market operations by establishing a level playing field.
- Empowering Regional Institutions for Effective Electricity Trade: To effectively oversee and coordinate electricity trade activities, it is essential to empower regional institutions such as the system market operator and ERERA. These institutions have a key role in not only oversight, but also in enforcing compliance and resolving disputes.
- Urgent Call for Investment in Transmission and Distribution Infrastructure: The forum emphasized the urgent need to prioritize investment in transmission and distribution infrastructure. A reliable and interconnected electricity grid across the ECOWAS region is crucial. This requires both upgrading existing infrastructure and strategically developing new projects.
- Gradual Implementation for Market Liberalization: Instead of sudden changes, experts recommended a gradual implementation of market liberalization. It’s important to establish the required regulatory and institutional structures before fully opening up the markets. Pilot programs and step-by-step reforms can facilitate a smooth transition, reduce disruptions, and maintain stability.
- Electricity Sector Investment with Innovative Financial Instruments: Encouraging investment in the electricity sector requires innovative financial instruments. Participants stressed the importance of blended finance, which involves leveraging both public and private sector funding. The goal is to create attractive investment opportunities, which can drive economic growth and improve access to reliable and affordable electricity.
In conclusion, the ERERA forum provided a platform for needed discussions, actionable recommendations, and a collective commitment to enhancing electricity trade security. By implementing these insights, we can pave the way for economic prosperity, sustainable energy, and improved livelihoods across the ECOWAS region.
