New Era of Open Access Electricity in Zambia
Africa GreenCo Group, represented by its Zambian subsidiary GreenCo Power Services Limited, is thrilled to announce a significant milestone of the successful execution of a System Operations Agreement (SOA) with the Zambian National Power Utility, ZESCO Limited.
The SOA was officially signed by ZESCO’s Managing Director, Engineer Victor Benjamin Mapani, and the CEO of GreenCo, Ms. Ana Hajduka, on October 6th, 2023.
Eng. Mapani said that this groundbreaking SOA marks a new era for open access electricity in Zambia. It defines the operational parameters for GreenCo’s supply of electricity from the 25MW Ilute Solar PV plant, to be constructed in the Western Province of Zambia, into ZESCO’s power grid system and subsequently sold into the Southern Africa Power Pool (SAPP).
According to Eng. Mapani the collaboration between ZESCO and GreenCo demonstrates the viability of an open access regime in the Zambian Electricity Supply Industry, aligning with legislative amendments made in 2019.
Situated in Sesheke District of Western Province, the 25MW Ilute Solar Power Project is set to be the first of its kind in Africa.
It will utilize the competitive markets of the SAPP to mitigate customer default risk by diversifying the customer base, departing from the traditional practice of transferring project risk to the national treasury.
ZESCO will be compensated by GreenCo for providing system operations services. The Ilute Solar project is being developed by a consortium comprising Western Solar Power, a Zambian developer, and Serengeti Energy.
This achievement aligns with President Hakainde Hichilema’s commitment to promoting competition and non-discriminatory access to electricity transmission and distribution infrastructure.
President Hichilema in his speech at the opening of the National Assembly, he emphasized the government’s dedication to implementing an open access regime, allowing private sector players to wheel power to their customers and remove ZESCO from unsustainable power purchase agreements.
ZESCO’s Managing Director, Engineer Victor Benjamin Mapani, welcomed the execution of the SOA and stated that ZESCO is determined to allow for more private participants onto the Electricity Supply Industry in an amenable manner because Zambia is open for business.
Eng. Mapani said that the execution of the SOA signifies a groundbreaking development for the nation’s energy landscape, highlighting Zambia’s commitment to fostering a competitive, equitable, and sustainable power sector.
CEO of GreenCo, Ms. Ana Hajduka, expressed gratitude to ZESCO and the Government of the Republic of Zambia for their continued support, stating that the successful execution of the System Operations Agreement with ZESCO is a significant milestone toward implementing a groundbreaking project and developing a market framework that facilitates greater private investment and operational integration with the national utility.
