ZAMBIA – The African Development Bank Group (AfDB) has approved an US$8 million concessional loan to fund the 25MW Ilute Solar Photovoltaic Power Plant in Zambia.
This project marks a first in Africa, where an energy trading company, Africa GreenCo, serves as the sole off-taker, representing a novel approach to renewable energy in the region.
The financing for Ilute will be channeled through the AfDB’s Sustainable Energy Fund for Africa (SEFA), a multi-donor fund managed by the bank to advance sustainable energy initiatives across Africa.
Developed by Serengeti Energy Ltd and Western Solar Power Ltd, the Ilute plant will be located in Zambia’s Sesheke District and is backed by a 25-year power purchase agreement with Africa GreenCo, a leading renewable energy trading and aggregation company in Africa.
The project is set to pilot Africa GreenCo’s unique aggregator model in collaboration with the Zambia Electricity Supply Corporation Limited (ZESCO).
Acting as an intermediary off-taker, Africa GreenCo will market the generated electricity via the Southern African Power Pool’s Day-Ahead Market, expanding regional energy trade.
“We are pleased to support the Ilute Solar PV project, which pioneers Africa GreenCo’s role as an intermediate off-taker. SEFA’s support has been pivotal in bridging the financing gap and laying groundwork for future projects that drive Southern Africa’s energy transition,” said Dr. Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency.
Serengeti Energy CEO, Anton-Louis Olivier, acknowledged the significance of AfDB’s financial backing, stating, “The support from AfDB and SEFA has been critical in advancing the Ilute Solar PV project amid challenges posed by the pandemic and rising costs.”
Olivier highlighted that the project exemplifies collaborative innovation and will serve as a model for renewable energy in Zambia and the broader region.
Earlier this year, the AfDB also approved US$302.9 million in financing to support a cross-border electricity interconnection project between Mauritania and Mali.
This loan comprises US$269.6 million for Mauritania and US$33.3 million for Mali to fund a 225 kV high-voltage transmission line linking the two countries and multiple solar power facilities along the route.
The US$888 million project, part of AfDB’s Desert to Power initiative, will also establish a 2,000 km medium- and low-voltage electricity distribution network.
Additionally, two solar power plants with capacities of 50 MW each will be built in Kiffa and Néma, Mauritania, to enhance energy access across the Sahel region.
Through projects like Ilute and the Mali-Mauritania interconnection, AfDB continues to champion sustainable energy and cross-border cooperation, supporting Africa’s transition to a renewable energy future.
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