This press release was originally published on 20th June here.
Africa GreenCo (GreenCo) is delighted to announce the procurement of up to 80MW of additional renewable energy capacity in Zambia to complete the establishment of its phase I generation portfolio. In this second round of procurement, GreenCo will employ a direct procurement approach by which it will engage with developers on a bilateral basis. This phase will target mainly solar PV. Interested developers may initiate formal engagement from 15th July 2022 via the procurement submission portal on our website which can be accessed at: www.africagreenco.com
On 13th April 2022, GreenCo achieved its second financial close with an equity investment of USD15.5m by the Danish Investment Fund for Developing Countries (IFU), the EU-funded Electrification Financing Initiative (EDFI ElectriFI) and Private Infrastructure Development Group’s (PIDG) InfraCo Africa. This investment provides the requisite capital to scale up operations as a regional creditworthy buyer of renewable energy and support the growth of its supply portfolio.
Through its Zambian subsidiary, GreenCo Power Services Limited, GreenCo ran a competitive tender process in 2021 to procure its initial solar PV project in Zambia. The Ilute Solar consortium, comprising Western Solar and Serengeti Energy, emerged as the preferred bidder to develop, build, own and operate a 25MW generation facility in the Sesheke District of the Western Province.
GreenCo also intends to expand its operations into other SAPP-connected countries and is in advanced discussions with the regulators and utilities in several countries. Such operations will comprise both (i) providing access to the Southern African Power Pool (SAPP) markets for generators and customers and (ii) committing to long term fixed price PPAs to facilitate greenfield development.
SAPP market access: GreenCo would welcome approaches from generators and commercial customers in any SAPP-connected country who wish to benefit from GreenCo’s regional trading capabilities to access the SAPP markets via a Trading Services Agreement. Such access can enable generators to take advantage of favourable market conditions, mitigate offtake risk, and/or maximise the value of any excess capacity without becoming a direct member of SAPP and enable customers to access alternative sources of power.
Long term PPAs: GreenCo also invites developers in Zambia and across the SADC region to register their interest in selling to GreenCo under its phase 2 generation portfolio to be officially launched next year comprising of approximately 350-500MW of renewable energy capacity. GreenCo’s ability to facilitate such projects will be supported by further funding of GreenCo from 2023 onwards in line with its regional business plan, which will continue to be influenced by the needs of the relevant markets. Proposals based on any renewable energy technology will be considered with a particular focus on wind, small hydro and solar PV.