Zambia Secures $26.5 Million for 32-MWp Ilute Solar Power Project with Serengeti Energy
Zambia has secured a $26.5 million senior debt package for the 32-MWp Ilute solar power project near Sesheke, developed by Serengeti Energy and Kwama Energy. This financing, notable for not relying on public guarantees, aims to diversify Zambia's energy mix and enhance supply security by increasing solar capacity. The project will operate under a merchant power purchase agreement with GreenCo Power Services Ltd., supported by a consortium including the Dutch development bank FMO and other investment firms.
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Zambia has secured a $26.5 million senior debt package for the construction of the 32-megawatt-peak Ilute solar power project near Sesheke, developed by Serengeti Energy in partnership with Kwama Energy. This financing structure is notable as it does not rely on public guarantees, marking a significant shift in how renewable energy projects are funded in sub-Saharan Africa.
The project will operate as an independent power producer under a merchant power purchase agreement with GreenCo Power Services Ltd., which aggregates electricity in the Southern African Power Pool. The funding consortium includes the Dutch development bank FMO, the Sustainable Energy Fund for Africa, EDFI Management Company, and Triodos Investment Management. The Ilute project aims to diversify Zambia's energy mix, which currently relies heavily on hydropower, and strengthen supply security through increased solar capacity.
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