The African Development Bank (AfDB) has approved a $8 million loan to support the construction of the 25 MW Irude solar photovoltaic plant in Zambia.
The project is located in the Seseke District of Zambia and is managed by Serengeti Energy Company Limited and Western Solar Company Limited.
GreenCo Power Services Ltd will purchase the electricity generated through a 25-year power purchase and sale agreement in the Southern African Energy Pool market.
Ilut Energy Company will also receive funding from the Sustainable Energy Facility for Africa (SEFA), a multi-donor fund managed by the World Bank.
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“This loan addresses the financial challenges we’ve faced due to the pandemic and rising costs. The Ilute project is a testament to innovative collaboration and serves as a pioneering model for future renewable energy initiatives in Zambia and the wider region,” Anton-Louis Olivier, CEO of Serengeti Energy, said.
Zambia is a country currently embroiled in a war between China and the US over raw materials in the region, which is crucial for batteries. It is part of the Lobito Corridor, to which the US has pledged $4 million following the signing of an agreement in September.
The agreement will provide AFC rail links to Angola and Zambia, the Cape Town to Cairo railway and, most importantly, rail links from Tenke in the Democratic Republic of Congo (DRC) to the Atlantic Ocean.
