The Board of Directors of the African Development Bank approves a loan for a solar power plant in Zambia
The Board of Directors of the African Development Bank Group has given the green light to a concessional loan of $8 million for the construction of a 25-megawatt photovoltaic solar power plant in Zambia. This financing, coming from the Sustainable Energy Fund for Africa (SEFA), a multi-donor fund managed by the Bank, aims to strengthen the sustainable development of the country and harness its potential in renewable energy.
This project, located in the Sesheke district, has faced increased costs due to the Covid-19 pandemic and other challenges. The development of the plant is led by Serengeti Energy and Western Solar Power. Competitively selected by GreenCo Power Services, this project will serve as a model for GreenCo’s energy aggregation system, facilitating access to the grid of the Zambia Electricity Supply Corporation. As an intermediary, GreenCo will purchase the electricity produced through a 25-year power purchase agreement and resell it on the day-ahead market of the Southern African Power Pool.
“We are delighted to support the Ilute photovoltaic solar project, which will be the first to engage Africa GreenCo as an intermediary buyer. SEFA’s support has been crucial in bridging the financing gap and will pave the way for future projects that will promote the energy transition in Southern Africa,” said Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the African Development Bank.
Anton-Louis Olivier, CEO of Serengeti Energy, expressed gratitude for SEFA’s support, stating: “We thank the African Development Bank Group and SEFA for helping us advance the Ilute photovoltaic project. This loan addresses the financial challenges we faced due to the pandemic and rising costs. The Ilute project is an example of innovative collaboration and will serve as a model for future renewable energy initiatives in Zambia and beyond.” Serengeti Energy positions itself as a major player in the renewable energy sector, specializing in the development, construction, and operation of plants tailored to the needs of public and private consumers.