Zambia: $8 million from the AfDB for a 25-megawatt solar power plant

The Board of Directors of the African Development Bank Group has approved an $8 million concessional loan to support the construction of a 25 megawatt solar photovoltaic power plant in Zambia. Funding for the Ilute plant will come from the Sustainable Energy Fund for Africa (SEFA), a special multi-donor fund managed by the Bank. Ilute is expected to advance Zambia's sustainable development and help the country exploit its renewable energy potential.

This initiative was faced with rising costs due to the Covid-19 pandemic and other challenges. Serengeti Energy Ltd and Western Solar Power Ltd are leading the development of the plant in the Sesheke district of Zambia. Selected on a competitive basis by GreenCo Power Services Ltd (GreenCo), the project will pilot GreenCo's energy aggregator model as part of the Zambia Electricity Supply Corporation Limited 's (ZESCO) open grid access. Acting as an intermediary, GreenCo will purchase the electricity generated under a power purchase agreement and sell it on the Southern African Power Pool Day-Ahead Market.

"We are delighted to support the Ilute solar photovoltaic project, which will be the first project to use Africa GreenCo as an intermediary buyer. SEFA's support has been instrumental in bridging the financing gap and will pave the way for future projects that will contribute to Southern Africa's energy transition.said Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank.

Anton-Louis Olivier, CEO of Serengeti Energy, welcomed SEFA's support. He said:"We are grateful to the African Development Bank Group and SEFA for helping us move forward with the 25 MW Ilute photovoltaic project. This loan responds to the financial challenges we have faced as a result of the pandemic and rising costs. The Ilute project is a testament to innovative collaboration and serves as a pioneering model for future renewable energy initiatives in Zambia and the wider region. "Serengeti Energy is a leading independent renewable energy producer, specializing in the development, construction and operation of renewable energy projects.velopment, construction and operation of large-scale renewable energy plants tailored to the needs of public and private off-takers.

ABOUT SEFA

The SEFA is a special multi-donor fund that provides catalytic financing to unlock private sector investment in renewable energy and energy efficiency. SEFA offers technical assistance and concessional financing instruments to remove market barriers, build a stronger project pipeline and improve the risk-return profile of individual investments. The Fund's primary objective is to contribute to universal access to affordable, reliable, sustainable and modern energy services for all in Africa, in line with the Bank's New Deal for Energy in Africa and Sustainable Development Goal 7.

Source: www.agenceecofin.com