The African Development Bank Group (AfDB) has approved an $8 million concessional loan to support the 25 MW Ilute Solar Photovoltaic (PV) power plant in Zambia’s Sesheke District.
This funding comes from the Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by AfDB, which aims to promote sustainable energy projects across the continent.
Led by Serengeti Energy Ltd. and Western Solar Power Ltd., the Ilute Solar PV project will boost Zambia’s renewable energy capacity while reducing its dependency on fossil fuels.
It also marks a pioneering move under the Zambia Electricity Supply Corporation Limited (ZESCO) open grid access framework, becoming the first project to implement Africa GreenCo’s energy aggregator model.
Under this model, Africa GreenCo will act as an intermediary off-taker, purchasing power generated by the plant through a 25-year Power Purchase Agreement and distributing it via the Southern African Power Pool Day-Ahead Market.
Dr. Daniel Schroth, AfDB’s Director for Renewable Energy and Energy Efficiency, emphasized the project’s importance for the region’s clean energy transition:
“We are delighted to support the Ilute Solar PV project – the first to use Africa GreenCo as an intermediate off-taker.
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,” he noted.
Serengeti Energy CEO Anton-Louis Olivier expressed gratitude for SEFA’s role in overcoming financial barriers caused by pandemic-related disruptions and rising costs.
“We appreciate the support from the African Development Bank Group and SEFA in helping us advance the Ilute 25 MW Solar PV project.
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 and beyond,” Olivier remarked.
This project is expected to set a precedent for sustainable energy developments in Zambia, underscoring the transformative potential of renewable energy in Africa.
