GreenCo Ignites Renewable Energy Revolution in Zambia with Historic Ilute Solar Project
Africa Greenco Group, alongside Serengeti Energy and Western Solar Power, proudly unveiled the signing of the first-ever Power Purchase Agreement (PPA) for the Ilute Solar PV Project, ushering in a new era for open-access electricity in Zambia.
Developed by Western Solar Power, a leading Zambian Renewable Energy Developer, and Serengeti Energy, an African Renewable Energy Independent Power Producer (IPP), the Ilute Solar PV Project is set to make history as the first of its kind in Africa.
The 25MWac project, located in the Sesheke District of Western Province in Zambia, aims to leverage the competitive markets of the Southern African Power Pool (SAPP).
A key highlight of this innovative venture is its unique private sector and market-based approach, designed to mitigate customer default risk.
Unlike conventional practices that transfer project risk to the government, Ilute Solar plans to utilize the vast markets available through SAPP to secure project financing without the need for sovereign guarantees.
The successful execution of a System Operations Agreement (SOA) between GreenCo and Zambian National Power Utility, ZESCO Limited, in Lusaka on October 6th, 2023, laid the foundation for this momentous occasion.
Eng. Victor Mapani, Managing Director of ZESCO, and Ms. Ana Hajduka, CEO of GreenCo, officiated the agreement, showcasing a collaborative effort in the renewable energy sector.
Ilute Solar’s direct foreign investment of US$37 million introduces distinctive financing structures aimed at diversifying Zambia’s energy sources.
FMO and the Sustainable Energy Fund for Africa (SEFA) are envisaged senior lenders currently progressing through their due diligence.
Beyond its contribution to the national energy grid, the Ilute Solar project is designed to stimulate local economic growth. The construction phase is expected to create employment opportunities and focus on community involvement and skill development.
GreenCo’s commitment to sustainability is further emphasized through its agreement to purchase power generated by the Ilute Solar PV project.
This strategic move aligns with Zambia’s dedication to sustainable energy solutions, marking a significant milestone in Africa’s renewable energy progress.
The Ilute Solar project not only underscores the success of an open-access regime within the Zambian Electricity Supply Industry (ESI) but also opens up new avenues for financing renewable energy projects across Africa.
The project highlights the feasibility of an open-access regime, in alignment with legislative amendments in 2019.
GreenCo’s strategic integration into the SAPP serves as a testament to effective regional cooperation, promoting renewable energy integration and fostering long-term sustainability not only in Zambia but also in the wider Southern African Development Community (SADC) region.
