Why We Invested in PowerLabs, Unlocking Smarter Energy for African Businesses

Nigeria’s economy is held back by an unreliable electricity grid. According to the World Bank, power shortages cost the country roughly US$29 billion each year and many households receive only around 6.6 hours of grid electricity per day. Businesses therefore run on diesel generators or invest in private solar systems. The Nigerian Bureau of Statistics reports that diesel prices rose by more than 68% in a year by April 2024. The result is that most manufacturing companies supply their own power, relying heavily on generators and heavy fuel. Meanwhile, Nigeria's national grid collapsed twelve times in 2024, triggering repeated nationwide blackouts.

Powerlabs, founded in Nigeria, was created to address this challenge. Its mission is to build an inclusive energy platform that gives users a personalised energy experience and a stake in the renewable future. The company’s flagship product, Pai, uses AI and data from internet‑connected devices to help businesses understand and manage their power systems. Pai applies real‑time pattern recognition to historical energy data to predict costs and reduce losses, size future assets accurately and automatically switch between power sources for uninterrupted operations. By doing so, it aims to minimise energy costs while maximising uptime.

Impact

Unreliable power supplies and fossil‑fuel dependency hinder economic growth and increase carbon emissions. PowerLabs helps companies reduce reliance on diesel generators by optimising the mix of grid, generator and renewable sources. For large factories, data centres and chain retailers, this means fewer emissions and lower operating costs. By deploying Pai, these businesses can monitor power supply patterns, track real‑time consumption and automatically switch between sources, improving energy resilience during grid collapses.

As Nigeria grapples with climate‑induced extreme weather and frequent grid failures, PowerLabs’ technology supports adaptation. Businesses can maintain operations during blackouts, reduce carbon‑intensive fuel consumption and integrate solar or battery storage into their energy mix. This not only cuts costs but also enhances competitiveness and protects jobs in sectors such as manufacturing, retail, and healthcare.

Innovation

PowerLabs combines hardware and software innovation to deliver intelligent energy management. Its Pai device collects high‑resolution data on power consumption and availability, while the software aggregates and analyzes that data to provide actionable insights. The platform offers three core functions:

• Energy analytics: it tracks energy usage and availability patterns to help users understand historical power supply and proactively manage consumption.
  
  
• Sizing optimization: Pai determines the most cost‑effective combination of power sources, ensuring that future assets like generators or solar arrays are neither over‑ nor undersized.
  
  
• Automated dispatch: it automatically switches between different energy sources and uses prescriptive dispatch schedules to minimise total power costs.

These features allow businesses to predict upcoming costs, schedule maintenance and avoid unnecessary fuel expenses. PowerLabs’ AI‑driven approach differentiates it from competitors focused primarily on utilities; instead, Pai is designed around the needs of energy consumers. The platform’s modular design also allows integration with third‑party meters and renewable systems, enabling a seamless transition to cleaner power sources.

Growth

The market opportunity for intelligent energy management in Nigeria and West Africa is significant. Chronic power shortages and high energy costs create strong incentives for businesses to adopt optimisation tools. The African Development Bank notes that Nigeria loses 5.8 % of its GDP due to inadequate electricity, and manufacturers spend billions on alternative energy sources. Meanwhile, diesel prices increased more than 68 % in the past year and electricity tariffs continue to rise. These trends accelerate demand for cost‑saving solutions like Pai.

The shift toward renewable energy also strengthens PowerLabs’ prospects. The Africa Solar Industry Association reports that 65 % of new solar capacity added in Africa in 2023 came from commercial and industrial (C&I) projects, underscoring the growing appetite among businesses for solar installations. By helping companies integrate and optimise multiple power sources, including solar, Pai can capture value across this expanding market.