Sub-Saharan Africa’s share of the global population without access to electricity was 77% in 2020, according to reports, Also, the average daily electricity supply in some of Africa’s largest cities is less than 12 hours. As a result, individuals and businesses find other options and options such as generators to deal with their electricity issues; However, using these solutions can either be costly or affect the climate.
While solar grids and panels are another viable option and attractive use cases for end consumers, there is still an opportunity to launch products targeted at power distribution companies, and this is where Beacon Power Services (bps) plays. The energy tech company, which provides data and grid management solutions to help Africa’s power sector distribute electricity more efficiently, is today announcing that it has closed a $2.7 million seed round.
Founder and Chief Executive Officer bimbola adisa, an aerospace engineer, started the company in 2014 after working for several years for a power turbine manufacturer and as an investment banker covering the power sector in the US, most of its clients include electric utilities, service providers and producers were involved. In an interview with Meczyki.Net, he said that these experiences gave him exposure to the application of the technology in the power sector, and he saw an opportunity to implement it in Nigeria and across Africa.
Adisa launched BPS in 2014 to address insufficient power supply from power distribution companies. The US- and Nigeria-based utility company provides energy management software and analysis for utilities. Its AI-enabled grid management platform, Adora, solves one of two fundamental problems facing electricity distribution companies in Africa.
The software provides real-time visibility on network performance for electric utilities and connects to each utility property and customer node on the grid, enabling energy providers to prevent outages and identify network losses, respond quickly to them and restore power. allows it to be distributed more efficiently. “The result is that utilities can operate more efficiently, recover more revenue, and by reducing outages, customers get an increased supply of electricity (supplied more hours daily), so everyone wins,” BFS said in response to an email to Meczyki.Net about how Adora works.
The second problem is data-centric, dealt with by the company’s proprietary platform called Customer and Asset Information Management Systems (CAIMs). Utilities in Africa struggle to maintain an accurate database of their customers, properties and grid topologies (the relationship between assets and customers). CAIM solves this by factoring in the specific circumstances in which Africa’s utilities operate, for example, poor address systems, and helping them digitize their data, which can be used as a basis for network improvements. works.
“Africa is home to the fastest growing cities in the world, but when most people think of energy access in Africa, they think of rural areas with little or no access to electricity. However, Africa It is impossible for the U.S. to grow without significantly improving access and reliability of electricity in its major cities,” said CEO Adisa in a statement. “That’s when we realized that solutions designed for mature markets were facing the unique Failing to address the infrastructure challenges, we developed a tailored solution for power companies on the continent to improve daily grid supply of electricity.”
Addisa told Meczyki.Net that BPS has grown from a single utility in Nigeria to four utilities in two countries, including Ghana, with over 8 million customers (residential and business). Adisa said the business model of BPS over the long term is to partner with its customers and not just sell products. Thus, the company can defer most of the upfront cost of implementing its technology in exchange for service-based payments commensurate with the value it generates.
The eight-year-old energy utility company says it differs from other platforms because it “provides local solutions that factors into the local operating environment in Africa.” For example, most off-the-shelf solutions built for mature markets do not factor in the frequency of outages in Africa or the network communication issues experienced, but BPS claims its solutions have solved it. .
The company’s seed round was led by Seedstars Africa Ventures with participation from Persistent Energy, Keppel Africa Ventures, Factor.[e] and Oridun Capital Management. Speaking on the investment, Maxim Bouan, Managing Partner, Seedstars Africa Ventures, said, “As a society, we have recognized climate change as one of the biggest threats to our generation, and it is important that we Use smart capital to support entrepreneurs across Africa who are creating innovative and local solutions to address this challenge.”
The new funding will enable BPS to improve its existing products (product upgrades to add new features and include automation) and expand into new markets beyond Nigeria and Ghana, where it currently operates.