Nigeria’s Distributed Utility Startup, Arnergy, Raises $9 Million

Nigeria’s Distributed Utility Startup, Arnergy, Raises $9 Million

It is evident that distributed energy will rule this age for Africa. Yes, while heavy-asset distribution companies (DISCOs) are crying for no money, African renewable startups are raising tons of money.  You do not need a seer to understand: remove government subsidy, most African electric utility firms will collapse.

Investors are voting for the startups and those startups are chipping the market from the national grid, taking the best customers along. The implication is that over time, national grid players will enter severe paralysis as they will not have profitable customers to serve at least in residential power.

Nigerian distributed utility company, Arnergy, has announced it has raised $9 Million in a Series A round of funding led by Breakthrough Energy Ventures with participation from the Norwegian Investment Fund for Developing Countries (Norfund), EDFI ElectriFI and All On.

Arnergy is a distributed utility company that provides energy solutions tailored towards energy reliability in emerging markets. Our energy solutions empower businesses and residential customers through the design, sale and installation of affordable and reliable, distributed energy systems. Target business verticals include, but are not limited to healthcare, education, hospitality, agribusiness, financial services and micro businesses that are driving impact and producing positive economic outcomes in their local economies. For more information visit http://www.arnergy.com.

“We are excited to enter this next phase in Arnergy’s development with investors that share our vision of tackling the most pressing energy challenges across emerging market economies, starting with Nigeria. We believe that energy needs in Nigeria have surpassed rudimentary requirements of low power utilization and our product offerings are solving for reliability and not just access,” said Femi Adeyemo, Founder and CEO of Arnergy.

Arnergy’s distributed renewable energy systems harness the combination of solar power, superior storage solutions and proprietary remote management technologies to deliver scalable, reliable and affordable energy solutions that are tailored to tackle issues related to intermittency and grid unreliability. Since launch, Arnergy has delivered over 2MW of installed capacity and over 5MWh of storage capacity to business and residential clients across Nigeria.

Arnergy’s market scaling ambitions, fueled by the influx of new capital, will include new business models and partnership opportunities, as well as consumer financing and channel expansion activities.Targeted verticals for the company’s 5KW modular systems will include small businesses, healthcare, hospitality, financial services, agribusiness and education.

About Arnergy

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