The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB), has announced that it will fund the development of Zambia’s 32 MWp Ilute Solar Project with $8 million.
In a statement by the AfDB, the project will be developed by Serengeti Energy and will be managed under a Power Purchase Agreement (PPA) by GreenCo Power Services.
“The project, an Independent Power Producer (IPP) located in Western Zambia, will supply electricity via the Southern African Power Pool (SAPP) under a market-based Power Purchase Agreement (PPA) with regional power trader GreenCo Power Services Ltd, an innovative regional power trader.”
Located in Zambia’s Sesheke District in the Western Province, the solar plant will connect to the South African Power Pool (SAPP) and will integrate solar energy into Zambia’s national grid.
The $8 million SEFA concessional loan will form part of the $26.5 million needed to finance the project.
“SEFA is proud to be a key catalytic partner in the Ilute Solar Project, which exemplifies our commitment to supporting innovative solutions that accelerate Africa’s energy transition,” said Director Schroth AfDB’s Director for Renewable Energy and Energy Efficiency.
“This project’s unique financing structure, coupled with its regional integration benefits, makes it a model for other African countries seeking to attract private investment and modernise their power sectors. SEFA’s strategic investment is crucial in making this project a reality.”
The Ilute Solar Project aligns with Zambia’s strategic objective of leveraging the SAPP to mobilise private capital, reinforce energy security, and modernise its electricity system.
It also aligns with the African Development Bank’s New Deal on Energy for Africa and the M300 initiative.
“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 as well as the wider region,” said Anton-Louis Olivier, CEO of Serengeti Energy.
The project has faced financial challenges due to the pandemic, and SEFA’s concessional financing under the COVID-19 IPP Relief Programme ensures its viability.
The project will join other solar energy projects under development in Zambia and is set to provide clean energy to thousands of Zambians.
