The board of directors of the African Development Bank (AfDB) has approved a concessional loan to support the construction of a 25MW Solar Photovoltaic power plant in Zambia
The 8 million U.S. dollar loan for the Ilute Plant comes from the Sustainable Energy Fund for Africa (SEFA), a multi-donor special fund by the bank. SEFA provides finance to unlock private sector investments in renewable energy and offers technical assistance aside from concessional finance.
The Ilute Plant is touted as a crucial project in unlocking the southern African country’s renewable energy potential.
Designed to reduce energy vulnerability during drought periods, the project will sustainably add to the country’s electricity capacity.
The Ilute project is connected to the Southern African Power Pool (SAPP), which will allow it to sell excess electricity to other regional countries. Aside from profitability, the project also fosters energy cooperation between Zambia and neighboring nations.
