Announcing the execution of an Implementation Agreement between the Government of the Republic of Zambia and GreenCo Power Services Limited

Africa GreenCo Group, through its Zambian-based operating company GreenCo Power Services Limited (together, GreenCo), is delighted to announce the execution of an Implementation Agreement (IA) with the Government of the Republic of Zambia. The IA was executed on behalf of the Government of Zambia by the Ministry of Energy’s Permanent Secretary Eng. Himba Cheelo, with support from the Ministry of Finance and the Ministry of Justice. The execution of the IA signifies the Government of Zambia’s support for developing the energy sector, mitigating climate change and opening the electricity market.

As the first renewable energy buyer and trader to join the Southern African Power Pool (SAPP),
GreenCo is mobilising significant private sector investment for renewable energy, strengthening
national and SAPP electricity markets, and facilitating a shift away from the current single buyer model. The region has great renewable energy potential and urgently needs more energy generation to support economic recovery, and to provide clean and affordable energy to its citizens. GreenCo’s model offers key innovations in the architecture of the electricity market and achieves better value – with more electricity generation and improved security of supply – in partnership (rather than in competition) with established industry players.

The implementation of this IA further firms up the path for the full implementation of the 25MW Ilute solar PV power plant, being developed by Western Solar Power Limited and Serengeti Energy Limited. The power plant is set to be the pilot greenfield project in GreenCo’s offtake portfolio and symbolises the Government of the Republic of Zambia’s commitment to mitigating climate change, improving security of supply, facilitating the opening of the electricity market and deployment of more renewable energy generation. This is a timely commitment at the start of the current Africa Climate Summit and in preparation for the forthcoming COP 28.

CEO of GreenCo, Ana Hajduka said, “The signing of this Implementation Agreement clearly demonstrates the ambition of the Government of Zambia, and its support not only for GreenCo but also for broader private sector engagement in the Zambian electricity market. GreenCo is exceedingly confident in the advancement of the Zambian energy sector, and we look forward to entering into our first project under the new model: Ilute Solar, a 25MW Solar PV in Western Province”.

About GreenCo. GreenCo acts as a renewable energy buyer and trader purchasing power from renewable energy generators and selling that electricity to utilities and private sector offtakers (i.e. commercial and industrial users), national power trading markets and markets of the SAPP. GreenCo will mitigate the risk of purchaser default through an ability to secure alternative buyers or through short-term trading on the SAPP electricity markets. Through its activities, GreenCo will also increase the supply of, and demand for, finance for energy projects, and mobilise private sector capital more quickly towards critical and transformative capacity addition. For more information please see: https://africagreenco.com/

GreenCo’s innovative business model was incubated with grant funding and strategic input from The Rockefeller Foundation, Convergence and the P4G. GreenCo also benefited from the support of SADC PPDF via the Development Bank of Southern Africa and USAID’s Power Africa, of which GreenCo is a private sector partner. 

 

About IFU 

IFU, the Danish Investment Fund for Developing Countries, is an independent government-owned fund offering advisory services and risk capital to companies doing business in developing countries and emerging markets. Investments are made on commercial terms with the aim of creating economic and social progress as well as supporting the Sustainable Development Goals. For more information please see: https://www.ifu.dk/en/about-ifu/

About PIDG. The Private Infrastructure Development Group (PIDG) is an innovative infrastructure development and finance organisation which encourages and mobilises private investment in pioneering infrastructure in the frontier markets of sub-Saharan Africa and south and south-east Asia to promote economic development and combat poverty. PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 157 infrastructure projects to financial close and provided 209 million people with access to new or improved infrastructure. PIDG is funded by six governments (the UK, the Netherlands, Switzerland, Australia, Sweden, Germany) and the IFC. For more information please see: www.pidg.org

 

About InfraCo. InfraCo Africa is part of the Private Infrastructure Development Group (PIDG). InfraCo Africa seeks to alleviate poverty by mobilising private investment into high-quality infrastructure projects in sub-Saharan Africa’s poorest countries. It addresses the risks and costs of early-stage project development: funding teams of experienced developers and providing risk capital to those projects which need the financial commitment and leverage that InfraCo Africa can bring. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). For more information please see: www.infracoafrica.com