Zambia: Renewable energy company receives $15.5m investment
InfraCo Africa, the Danish Investment Fund for Developing Countries (IFU) and the EU-funded Electrification Financing Initiative (EDFI ElectriFi), have together committed $15.5 million to enable Africa GreenCo to scale its innovative offering as Zambia’s first renewable energy buyer and services provider.
GreenCo’s chief investment officer, Pug Bennet said, “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 our partners from the Government of Zambia, ZESCO, the SAPP team and the existing SAPP members for their trust and support of innovative new business models such as GreenCo and look forward to working alongside the industry leaders as the market grows from strength to strength. We are now ready to mobilise significant private sector investment in renewable energy whilst strengthening the national and SAPP electricity markets.”
GreenCo’s Lusaka-based company, GreenCo Power Services was established in 2020 with support from IFU and InfraCo Africa (through its sister company, PIDG Technical Assistance). GreenCo’s model involves purchasing power from renewable independent power producers (IPPs) and selling that electricity to utilities, private sector offtakers (i.e. commercial and industrial users) and competitive markets in the Southern African Power Pool (SAPP). The monies raised by the second fundraising will provide GreenCo with working capital and the liquidity buffer necessary to support a portfolio of up to 110MW of renewable energy.
InfraCo Africa’s chief investment officer, Claire Jarratt said, “PIDG and InfraCo Africa are pleased to be investing alongside IFU and EDFI ElectriFI to grow the potential of GreenCo’s innovative approach. With strong support from the Government of Zambia and national utility, ZESCO, GreenCo aims to both increase the attractiveness of Zambia’s renewable energy sector to private investors and to complement wider efforts to incorporate more clean energy into the country’s energy mix by reducing reliance on sovereign financial support to bring that new generation capacity online.”
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