African Development Bank Group Approves $8 Million Loan for 25MW Solar Photovoltaic Power Plant in Zambia

The Board of Directors of the African Development Bank Group has approved an $8 million concessional loan to support the construction of a 25MW Solar Photovoltaic power plant in Zambia.

Funding for the Ilute Works comes from the Sustainable Energy Fund for Africa (SEFA), a multi-donor Special Fund managed by the Bank. Ilute is expected to promote Zambia’s sustainable development and help the country unlock its renewable energy potential.

Project Overview

The initiative has faced rising costs related to the COVID-19 pandemic and other challenges. Serengeti Energy Ltd and Western Solar Power Ltd are leading the development of the plant in Zambia’s Sesheke District. Competitively selected by GreenCo Power Services Ltd (GreenCo), this project will act as a pilot for GreenCo’s energy consolidation model under the Zambia Electricity Supply Corporation Limited (ZESCO) is an open grid access framework to be sold to the South African Power Day Forward Market.

Support and Impact

« We are very proud to support the Ilute Solar PV project – which is the first project to use Africa GreenCo as an intermediate outsourcer. SEFA’s support has been instrumental in bridging the funding gap and will pave the way for future projects that contribute to South Africa’s energy transformation,” said Dr Daniel Schroth, Development Bank Director of Renewable Energy and Energy Efficiency Africa.

Anton-Louis Olivier, CEO of Serengeti Energy, acknowledged SEFA’s support. He said, “We appreciate the support from the African Development Bank Group and SEFA to help us move the Ilute 25MW Solar PV project forward. This loan addresses the financial challenges we have faced due to the pandemic and rising costs.

Innovative Collaboration

The Ilute project is a testament to innovative collaboration and is an innovative model for future renewable energy initiatives in Zambia as well as the wider region.” Serengeti Energy is a leading renewable independent power producer specializing in the development, construction and operation of utility-scale renewable energy plants tailored to the needs of public and private off-takers.