Africa GreenCo: Signing of GreenCo’s first PPA with Ilute Solar, a partnership between Serengeti Energy and Western Solar Power, at COP 28.

Pioneering a New Era for Open Access Electricity in Zambia

Africa Greenco Group, Serengeti Energy and Western Solar Power are thrilled to announce the signing of a Power Purchase Agreement (PPA) at this year’s COP 28 in Dubai for the Ilute Solar PV Project. Ilute Solar has been developed by Western Solar Power, a Zambian Renewable Energy Developer, and Serengeti Energy, an African Renewable Energy IPP owned by KfW, STOA, Proparco, Norfund, Swedfund and NDF. This follows the successful execution of a System Operations Agreement (SOA) between GreenCo, through its Zambian-based operating company GreenCo Power Services Limited (together GreenCo), and Zambian National Power Utility, ZESCO Limited officiated by ZESCO Managing Director, Eng. Victor Mapani and the GreenCo CEO, Ms. Ana Hajduka on 6th October 2023 in Lusaka, Zambia.

Situated in the Sesheke District of Western Province in Zambia the ground breaking 25MWac Ilute Solar PV Project is set to make history as the first of its kind in Africa. Leveraging the competitive markets of the Southern African Power Pool (SAPP), the project adopts an innovative private sector and market based approach to mitigate customer default risk. Unlike the conventional practice of transferring project risk to the government, Ilute Solar will use the vast markets available through SAPP to secure project financing without the need for sovereign guarantees.

The ground-breaking project will serve as a testament to the practicality and success of an open
access regime within the Zambian Electricity Supply Industry (ESI), aligning with the legislative amendments of 2019 and will open up new avenues for financing renewable energy projects in Africa. With a substantial direct foreign investment of US$37 million, Ilute introduces distinctive financing structures aimed at diversifying Zambia’s energy sources. FMO and the Sustainable Energy Fund for Africa (SEFA) are the envisaged senior lenders progressing on their due diligence. Beyond contributing to the national energy grid, the project is designed to stimulate local economic growth by creating employment opportunities during its construction phase and focusing on community involvement and skill development.

ZESCO will be paid by GreenCo for providing its sophisticated system operations services, exemplifying a collaborative effort in the renewable energy sector and thus aligning seamlessly with the legislative amendments of 2019, showcasing the feasibility of an open access regime in the Zambian Electricity Supply Industry (ESI). The SOA between GreenCo and ZESCO, further demonstrates a shared goal of enhancing Zambia’s energy sector. GreenCo’s involvement in the project highlights its dedication to sustainability by agreeing to purchase power generated by the Ilute solar PV project. Additionally, the project reflects Zambia’s commitment to sustainable
energy solutions, a significant move in Africa’s renewable energy progress and underscores SAPP’s role in enabling renewable energy integration into the region.

GreenCo’s strategic integration into the SAPP exemplifies effective regional cooperation, promoting renewable energy integration and fostering long-term sustainability not only in Zambia but also in the wider SADC region.

For media inquiries and further information, please contact: bd@africagreenco.com