Zambia Receives $154 Million for Renewable Energy Projects
Zambia has secured a $154 million investment from the Green Climate Fund and the African Development Bank to enhance renewable energy capacity. This initiative aims to reduce reliance on hydropower and address ongoing energy shortages through solar projects.
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The Green Climate Fund (GCF) and the African Development Bank (AfDB) have established a financing framework of $154 million to support renewable energy in Zambia. The investment will primarily develop 100 megawatts of small-scale solar energy projects, addressing Zambia's historical dependence on hydropower, which has been compromised by climate-induced droughts.
GCF will provide $50 million in debt financing and a $2.5 million grant, with additional co-financing from AfDB, commercial banks, and private investors. This framework is expected to enhance rural electrification and strengthen local financial institutions, facilitating a transition to a low-carbon economy. The agreement signifies a collaborative effort to diversify Zambia's energy system against climate change impacts.
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