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Zambia’s energy sector is set for a boost as six partners unveil a US$26.5 million solar power project in Sesheke, one of the first private plants to trade power on the Southern African Power Pool.
Six international partners have come together to develop the 32MWp Ilute Solar PV Plant in Sesheke District, Western Province, through a power purchase agreement with GreenCo Power Services Ltd — marking a major breakthrough in renewable energy financing on the continent.
In a statement issued on Thursday, lead partner Serengeti Energy and Kwama Energy, alongside four financiers, announced the landmark project.
The financing package, led by FMO — the Dutch entrepreneurial development bank — includes a US$26.5 million contribution, with additional funding from the Sustainable Energy Fund for Africa (SEFA) under the African Development Bank (AfDB), Triodos Investment Management, and EDFI Management Company through the EU-funded Electrification Financing Initiative (ElectriFI).
Read more: Zambia looks to UK’s Echo Eight for solar, wind, storage solutions to ensure reliable energy supply
The Ilute Solar PV Plant is strategically positioned to meet the rising electricity demand in Southern Africa and will be among the first major private renewable projects to connect to the Southern African Power Pool (SAPP).
It will sell power directly through the regional market, bypassing traditional government guarantees.
“The blended finance model integrates commercial, development, and concessional capital to mitigate risks and unlock new pathways for renewable energy deployment in Africa,” the partners stated.
Beyond clean energy generation, the project is designed to deliver social and environmental benefits. In collaboration with the Barotse Royal Establishment, a Community Development Trust will be established to support local economic, social, and cultural initiatives.
The plant is also expected to create jobs, foster skills training, and stimulate economic activity in the area.
Commenting on the project, ZESCO Managing Director, Justin Loongo, said: “This project reflects Zambia’s commitment to modernising its power sector through innovative, market-based solutions. As the national utility, ZESCO is proud to support a transaction that not only strengthens our grid but also positions Zambia as a regional energy hub.
“The Ilute Solar Project demonstrates what’s possible when public institutions, private developers and buyers, and regional platforms like SAPP work together to deliver long-term energy security and economic benefit for our country.”
“This milestone shows that Zambia can attract clean energy investment while protecting public funds,” said Wezi Gondwe, Managing Director of GreenCo Zambia.
Gondwe stated that: “As a Zambian led and based company, we’re proud to help power the country’s development through this innovative model.”
“Kwama is proud to have led the project from the start,” said Sipho Phiri of Kwama Energy.
Phirl stated that “Ilute is proof that Zambian companies can deliver world-class, community-focused energy projects.
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