| Project Detail |
The project is being developed by Serengeti Energy Ltd and Western Solar Power Ltd. Since 2021; the project has experienced rising costs due to the COVID-19 pandemic and additional work requirements. The SEFA Covid-19 IPP Relief Programme has been instrumental in addressing these challenges. SEFA’s USD 8 million concessional loan will bridge the viability gap and restore the project’s financial sustainability while also supporting a pioneering initiative with strong demonstration potential. SEFA’s involvement also helped mobilize additional financing from the Dutch entrepreneurial development bank, FMO, which providesboth subordinated and senior loans.
Project Objectives
The project involves designing, financing, constructing, commissioning, operating, and maintaining a 25 MWac (32MWp) solar photovoltaic power plant and associated connection infrastructure. The plant will be located approximately 15km north of Sesheke, on the western side of the Zambezi River, in Zambia’s Western Province. Electricity generated will be evacuated through the nearby 66/220KV Sesheke substation near the Namibia border. The project was competitively selected in July 2021 by GreenCo Power Services Ltd (GreenCo) as a pilot under its energy aggregator model, where GreenCo acts as an intermediary off-taker. GreenCo will purchase electricity from the project under a 25-year Power Purchase Agreement (PPA), selling the energy into the Southern African Power Pool (SAPP) Day-Ahead Market (DAM).
Beneficiaries
The project is expected to significantly contribute to decarbonisation efforts and advance the energy transition in Southern Africa. It aligns seamlessly with the Bank’s 2024-2029 Country Strategy Paper (CSP) for Zambia, the Bank’s Ten-Year Strategy 2024-2033 (TYS), and the High Five priorities, particularly "Light Up and Power Africa." The project also supports the Bank’s Climate Change & Green Growth Policy Framework, the private sector strategy, and the Regional Integration Strategic Framework 2018-2025 (RISP), particularly Pillar 1: Infrastructure Connectivity. |
