LUSAKA – GreenCo Power Services, a Mauritius-based subsidiary of Africa GreenCo Group, has joined the Southern African Power Pool (SAPP). GreenCo joined the SAPP as a Market Participant on October 8th, 2021. GreenCo Group CEO Ana Hajduka thanks the SAPP team and existing SAPP members for their faith and support of innovative new business models like GreenCo`s. She stated that the organization looks forward to engaging with industry leaders as the market grows. Ms. Hajduka adds that GreenCo Group is grateful to ZESCO for its continued support on the SAPP membership application process.
“SAPP membership is a key factor in enabling GreenCo to act as a creditworthy buyer and trader of renewable energy and to play a transformative role in mobilizing significant private sector investment in renewable energy, strengthening the national and SAPP electricity markets and facilitating a shift away from the current single buyer model which places heavy financial burdens on governments and utilities,” Ms Hajduka stated.
Africa GreenCo Group via its operating entity GreenCo Power Services Limited acts as an intermediary offtaker and service provider, purchasing power from renewable IPPs and selling that electricity to utilities and private sector offtakers (i.e. commercial and industrial users) 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.
While the Southern African Power Pool (SAPP) is the SADC region’s regional power pool that facilitates trade. It was intended to deliver reliable and affordable electricity to all SAPP members’ consumers while minimizing the impact on the environment.
It was founded in 1995 by its 12 member countries’ electric power utility businesses. The SAPP members agreed to develop a SADC-wide electricity market and let their customers benefit from it. SAPP participants have promised to act in solidarity without taking advantage of one another. It is expected that members will cooperate in the development of planning and operational procedures as well as accept wheeling on behalf of other members where technically practicable.
With ZESCO alone, Zambia contributes 29.752 billion kWh of electricity only second from South Africa with 240 billion kWh the SADC region electricity pool. The admittance of GreenCo into SAPP will see that number raise. Additionally, CEC is a member of SAPP since 2019.
Greenco`s admittance to SAPP is meant:
- To strengthen the national and Southern African Power Pool (SAPP) electricity markets and to facilitate a shift away from the current single buyer model.
- Offer key innovations in the architecture of the electricity market and achieve better value with more electricity generation and improved security of supply-in partnership rather than in competition with established industry players. GreenCo and its investors are focused on supporting Government as well as the governments of other countries in the Southern Africa Development Community (SADC) in the opening of their electricity markets.
- Promote cross border power transactions and a more dynamic and liquid short-term power market. 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
With the initiative, ZESCO Limited hopes to provide alternate off-taker involvement in the country’s energy industry, while also supporting the maturation of electricity markets to boost electricity trade as noted by the power utility giant’s MD Victor Mundende.
In the long run, GreenCo plans, through its participation in competitive power markets, GreenCo will promote cross-border power transactions and a more dynamic and liquid short-term power market. Through its activities, GreenCo will increase the supply of, and demand for, finance for energy projects, and mobilise private sector capital more quickly towards critical and transformative capacity addition.
