In a significant move towards expanding renewable energy in Zambia, the Government of the Republic of Zambia has executed an Implementation Agreement (IA) with GreenCo Power Services Limited, a subsidiary of the Africa GreenCo Group. This strategic partnership aims to strengthen the nation’s energy sector, combat climate change, and promote a more diversified electricity market.
The IA was formally signed on behalf of the Zambian Government by Eng. Himba Cheelo, the Permanent Secretary of the Ministry of Energy, with support from the Ministry of Finance and the Ministry of Justice. This agreement underscores Zambia’s commitment to sustainable energy development, increased security of energy supply, and the opening of its electricity market.
GreenCo Power Services Limited, a pioneer in renewable energy buying and trading, is the first such entity to join the Southern African Power Pool (SAPP). The organization is mobilizing substantial private sector investments in renewable energy, aiming to boost national and regional electricity markets while transitioning away from the existing single buyer model.
The Southern African region boasts enormous potential for renewable energy, and the need for increased energy generation to support economic recovery and provide clean, affordable energy is urgent. GreenCo’s unique approach to the electricity market offers innovative solutions and strives for better value, focusing on collaboration with established industry players rather than competition.
The execution of this IA signifies a major step towards the full implementation of the 25MW Ilute solar PV power plant. This greenfield project is being developed by Western Solar Power Limited and Serengeti Energy Limited and marks the first project in GreenCo’s offtake portfolio. It exemplifies the Zambian Government’s dedication to climate change mitigation, enhanced energy security, the opening of the electricity market, and the deployment of renewable energy generation. This commitment aligns with ongoing discussions at the Africa Climate Summit and preparations for COP 28.
CEO of GreenCo, Ana Hajduka, expressed her optimism about the partnership, stating, “The signing of this Implementation Agreement clearly demonstrates the ambition of the Government of Zambia, and its support not only for GreenCo but also for broader private sector engagement in the Zambian electricity market. GreenCo is exceedingly confident in the advancement of the Zambian energy sector, and we look forward to entering into our first project under the new model: Ilute Solar, a 25MW Solar PV in Western Province.”
GreenCo’s innovative business model has been developed with grant funding and strategic guidance from The Rockefeller Foundation, Convergence, and the P4G. It has also received support from SADC PPDF via the Development Bank of Southern Africa and USAID’s Power Africa.
This partnership holds the promise of a greener, more sustainable energy future for Zambia, aligning with global efforts to combat climate change and enhance energy security.