African Development Bank’s Sustainable Energy Fund for Africa approves $8 million for development of 25 MW Solar Plant.

The African Development Bank (AfDB) approved a $8 million concessional loan to help build a 25MW solar photovoltaic power facility in Zambia.

The Sustainable Energy Fund for Africa (SEFA), a Bank-managed multi-donor special fund, will provide financing for the Ilute Plant.

According to the AfDB, Ilute will assist Zambia achieve sustainable development and unlock its renewable energy potential.

Serengeti Energy Ltd and Western Solar Power Ltd are leading the plant development in Zambia's Sesheke District.

According to the AfDB, competitively selected by GreenCo Power Services Ltd, this project will serve as a pilot for the company’s energy aggregator model under the Zambia Electricity Supply Corporation Limited open grid access framework.

It added that acting as an intermediary off-taker; GreenCo will purchase the generated electricity through a 25-year Power Purchase Agreement and sell 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,” said Dr Daniel Schroth, African Development Bank director for Renewable Energy and Energy Efficiency.

Anton-Louis Olivier, CEO of Serengeti Energy, added: “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.”

Serengeti Energy is a renewable independent power producer specialising in the development, construction, and operation of utility-scale renewable energy plants tailored to the needs of both public and private off-takers.