The African Development Bank Group (AfDB) has approved an USD 8 million (EUR 7.4 million) concessional loan to support the construction of a 25-MW solar project in Zambia, addressing rising costs exacerbated by the COVID-19 pandemic and other challenges.
This financing is sourced from the Sustainable Energy Fund for Africa (SEFA), a multi-donor special fund managed by the AfDB. The solar project, named Ilute, is being developed in Zambia's Sesheke District by Serengeti Energy Ltd and Western Solar Power Ltd. The project has been selected by GreenCo Power Services Ltd as a pilot for its energy aggregator model, under Zambia's open grid access framework. GreenCo will serve as an intermediary off-taker, purchasing the generated electricity through a 25-year power purchase agreement and reselling it to the Southern African Power Pool Day-Ahead Market.
“SEFA's support has been instrumental in bridging the financing gap and will pave the way for future projects that contribute to Southern Africa's energy transition,” stated Daniel Schroth, AfDB director for renewable energy and energy efficiency.
Anton-Louis Olivier, CEO of Serengeti Energy, emphasized the significance of SEFA's backing, noting, “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.”
In a related development, Serengeti Energy has announced plans to develop a 50-MW solar farm in northern Côte d'Ivoire.
