- IFU and EDFI ElectriFI fund $15.5m into Zambia’s renewable energy.
- GreenCo’s concept entails purchasing power from renewable IPP.
The Danish Investment Fund for Developing Countries (IFU) and the EU-funded Electrification Financing Initiative (EDFI ElectriFi) are providing $15.5 million to GreenCo Africa to expand its portfolio as Zambia’s first renewable energy buyer and service provider.
GreenCo aspires to enhance private sector energy generation investment in sub-Saharan Africa by reducing credit risks associated with the existing lack of creditworthy off-takers. The $15.5 million 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.
Pug Bennet, GreenCo’s Chief Investment Officer, said they are grateful to their investors and partners, ZESCO, the South African Power Pool, existing SAPP members, and the Zambian government for the trust and support of a new business model. “We are now ready to mobilise significant private sector investment in renewable energy while strengthening the national and SAPP electricity markets,” said Bennet.
GreenCo has introduced a creditworthy buyer of renewable energy generated from IPPS to the Zambian power market, according to Zambian Minister of Energy Peter Chibwe Kapala. “GreenCo’s entry into the Zambian energy market demonstrates the government’s commitment to creating a suitable environment for private investment in a competitive, open, and transparent electricity market.” This investment would help Zambia establish a more environmentally friendly and diverse energy mix, creating jobs and new economic possibilities while putting Zambia as the region’s power trading centre, according to Zambia’s Energy Minister.