Zambia is set to harness the sun’s power with the go-ahead for a new 25MW solar photovoltaic plant in Sesheke District. The African Development Bank (AfDB) announced an $8 million concessional loan to support the project, providing a much-needed boost to the country’s renewable energy ambitions.
The Ilute plant, spearheaded by Serengeti Energy and Western Solar Power, will be the first to utilize GreenCo Power Services as an intermediary off-taker. This innovative model paves the way for future renewable energy projects under Zambia Electricity Supply Corporation Limited’s (ZESCO) open grid access framework. GreenCo will purchase the electricity generated through a 25-year Power Purchase Agreement and then sell it to the Southern African Power Pool Day-Ahead Market.
“We are delighted to support the Ilute Solar PV project, a pioneer in utilizing Africa GreenCo’s intermediary off-taker model,” said Dr. Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency. “SEFA’s (Sustainable Energy Fund for Africa) support has been instrumental in bridging the financing gap and will pave the way for future projects driving Southern Africa’s energy transition.”
The project has faced headwinds, including rising costs due to the COVID-19 pandemic. However, the AfDB loan provides a critical lifeline, as acknowledged by Anton-Louis Olivier, CEO of Serengeti Energy. “This loan addresses the financial challenges and positions the Ilute project as a testament to innovative collaboration,” he said. “It serves as a pioneering model for future renewable energy initiatives in Zambia and the wider region.”
The Ilute plant is a significant step towards Zambia’s sustainable development goals and a beacon of hope for a cleaner energy future. The project not only increases energy security but also paves the way for a more diversified and environmentally friendly energy mix for the nation.
