African Development Bank Approves $8 Million for 25 MW Solar Plant in Zambia
The African Development Bank Group (AfDB) has approved an $8 million concessional loan to fund the development of the 25 MW Ilute Solar Photovoltaic (PV) power plant in the Sesheke District, Zambia.
This financial support is part of the Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by the AfDB aimed at advancing sustainable energy projects across Africa.
The Ilute Solar PV project, spearheaded by Serengeti Energy Ltd. and Western Solar Power Ltd., is set to enhance Zambia’s renewable energy capacity and reduce its reliance on fossil fuels.
The project will also serve as a pilot under the Zambia Electricity Supply Corporation Limited (ZESCO) open grid access framework, making it the first initiative to implement Africa GreenCo’s energy aggregator model.
Through this model, Africa GreenCo will act as an intermediary, purchasing electricity generated by the plant via a 25-year Power Purchase Agreement and distributing it through the Southern African Power Pool Day-Ahead Market.
Dr. Daniel Schroth, Director for Renewable Energy and Energy Efficiency at AfDB, expressed optimism about the project’s potential impact.
“We are delighted to support the Ilute Solar PV project – the first to use Africa GreenCo as an intermediate off-taker. SEFA’s support has been instrumental in bridging the financing gap and will pave the way for future projects that contribute to Southern Africa’s energy transition,” Dr. Schroth noted.
Anton-Louis Olivier, CEO of Serengeti Energy, also acknowledged SEFA’s role in overcoming financial obstacles posed by pandemic-related challenges and rising costs. “We appreciate the support from the African Development Bank Group and SEFA in helping us move the Ilute 25MW Solar PV project forward.
This loan addresses the financial challenges we’ve faced due to 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 beyond,” Olivier remarked.
