#Zambia #Globeleq #Kafue Solar #Kafue

Globeleq Achieves Financial Close on 40MWac Kafue Solar Project in Zambia

Globeleq, a prominent independent power producer across Africa, has announced its recent financial closure on the Kafue Solar Project. This solar power plant, boasting a capacity of 40 MWac (56 MWp), is strategically located near Kafue Town in the Lusaka Province of Zambia. The project has been developed under the GET FiT Zambia Programme, which is an initiative aimed at enhancing private sector investments in renewable energy, particularly for small and medium-sized projects.

Under a long-term power purchase agreement with ZESCO, Zambia's national electricity supplier, the Kafue Solar Project will ensure a reliable and sustainable power supply in the region for the next 25 years. This agreement is expected to significantly contribute to both local energy needs and the overall growth of renewable energy in Zambia.

Financial Backing and Project Management

Globeleq is the sole proprietor of the Kafue Solar Project, responsible for its construction as well as ongoing asset management and operations. The project received long-term financing amounting to USD 52.1 million from FMO, the Dutch entrepreneurial development bank, and British International Investment (BII). FMO contributed USD 27.6 million, while BII invested USD 24.5 million. Additionally, this initiative has garnered support from the Norwegian Agency for Development Cooperation, which has provided a grant to fund certain grid connection works and upgrades necessary at the Kafue substation, managed by ZESCO.

In a significant development partnership, Solarcentury Africa has been engaged by Globeleq for its technical expertise, which is crucial for the project's success. They will be working in conjunction with Alensy Energy Solutions Zambia, to deliver the project's engineering, procurement, and construction (EPC) requirements.

Impact on the Community and Environment

Upon becoming operational, the Kafue Solar Project is anticipated to supply clean electricity to approximately 38,000 households. This endeavor will contribute significantly to reducing carbon emissions, with an estimated avoidance of about 48,000 tonnes of CO2 each year. Furthermore, the construction phase alone is expected to create around 200 job opportunities for local residents, paving the way for long-term employment prospects once the project is up and running.

Perspectives from Leadership

Jonathan Hoffman, CEO of Globeleq, expressed optimism about the project's impact, stating, "The Kafue Solar project highlights how partnership between the private sector and public partners like ZESCO can help deliver Zambia's economic and energy ambitions. By strengthening the grid in a key industrial region, it will foster growth, provide reliable power to businesses and communities, and advance a sustainable, lower-carbon energy framework."

In support of these sentiments, Rebecca Terzeon, the British High Commissioner to Zambia, noted, "The UK is pleased to support Zambia’s efforts to enhance clean and reliable power through collaborations that harness private investments. Initiatives like GET FiT unite governments, developers, and financiers to realize projects like Kafue Solar, which yield tangible benefits for both communities and industries."

Robert Voskuilen, Manager Energy for Eastern and Southern Africa at FMO, further emphasized the significance of the project, articulating, "FMO is committed to supporting renewable energy initiatives that stimulate sustainable development and improve access to clean energy. The Kafue Solar project aligns perfectly with our mission of empowering communities and promoting economic growth."

Chris Chijiutomi, Managing Director and Head of Africa at BII, reiterated BII’s commitment to nurturing the energy transition in Africa, remarking, "We are proud to support Globeleq in delivering a project that will provide affordable, reliable, and clean energy to Zambia, ultimately enhancing jobs and long-lasting economic resilience."

About Globeleq

Globeleq specializes in the development, ownership, and operation of electricity generation facilities across Africa, dedicated to offering tailored energy solutions and facilitating the region's transition to a sustainable energy future. Established in 2002, the company has constructed a diverse portfolio of independent power plants, efficiently generating 1,660 MW across 17 plants in seven countries and has 665 MW under construction, along with plans for over 2,000 MW in development. Globeleq is jointly owned by British International Investment and Norfund, the UK and Norwegian development finance institutions, respectively.

For more information, visit www.globeleq.com.