Minister of Energy, Peter Kapala has noted that the entry of the private sector into the Zambian Electricity market will support the country’s development of a greener and diversified energy mix that supports jobs and investments.
Engineer Kapala says this is the reason Africa GeenCo’s participation in the country’s energy sector is a milestone that signifies government’s efforts to create a conducive environment aimed at attracting private investment in an open, transparent and competitive electricity market.
Mr Kapala was speaking in Lusaka today, at the launch of Africa GreenCo, an alternative off-taker for renewable energy in Zambia and the region.
Mr Kapala said following the enactment of the 2019 energy sector legal framework, Africa GreenCo has been the first renewable energy buyer and trader in Zambia which seeks to enhance project bankability and reduce the risk for independent power producers.
He said the hope of the government is to ensure the private sector like GreenCo contribute towards making projects in the energy sector more bankable, whilst encouraging the growth of the electricity markets to foster economic development.
“I’m reliably informed that GreenCo’s support has been made possible through the generous support from various support including the Denmark Investment Development Fund for Developing Countries (IFU), Infranco Africa and electricity, through which US$15.5 Million was raised for this project,” he said.
Engineer Mapani stated that to achieve these dreams actors like Africa GreenCo will play an important role in the energy sector.
And Africa GreenCo Founder and Chief Executive Officer Ana Hajduka said her organisation aims to increase private sector investment in energy generation in Sub-Saharan Africa by mitigating the credit risks associated with the current lack of creditworthy offtakers.
Ms Hajduka said GreenCo’s model involves purchasing power from renewable independent power producers (IPPs) and selling that electricity to utilities, private sector offtakers.
“Reaching this financial close will enable us to support a portfolio of up to 110MW of renewable energy, we are extremely grateful to our investors and partners from the Zambian government, ZESCO, the SAPP team and existing ASPP partners,” she said.