FMO Provides $80 Million for Solarcentury Africa's Southern Africa Expansion
FMO is allocating an $80 million financing package to enhance Solarcentury Africa's solar energy projects in Zambia, Namibia, and Botswana. This investment aims to shift Southern Africa to a flexible electricity market model, reducing reliance on government-backed agreements.
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FMO's financing package includes a $40 million committed facility to refinance existing solar projects in Namibia and Zambia and a $40 million uncommitted facility for future developments, including the 113 MW Lotsane Solar Plant in Botswana. The funding promotes a market-based electricity trading model through the Southern African Power Pool, allowing Solarcentury to sell electricity directly and enhance regional energy flexibility.
Approximately 90% of the energy generated will benefit Zambia's grid, addressing energy security concerns amid reliance on hydropower. This investment is classified as 100% Green and aims to improve Zambia's energy diversification.
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