Zambia’s Ilute 32MW Solar Project Reaches Financial Close

Serengeti Energy, Kwama Energy and FMO have reached financial close on the Ilute Solar Project, a 32-megawatt solar power plant near Sesheke in Zambia’s Western Province, enabling construction to begin.

The project is among the first utility-scale solar plants in Zambia to operate under a market-based power purchase arrangement, with electricity sold directly to GreenCo Power Services, a regional electricity trader linked to the Southern African Power Pool.

Ilute secured $26.5 million in blended financing from development, commercial and concessional lenders, including FMO, the Sustainable Energy Fund for Africa, EDFI Management Company through ElectriFI, and Triodos Investment Management.

The non-recourse, project-financed structure removes the need for sovereign guarantees, marking a first for a greenfield renewable energy project in Zambia and shifting electricity price risk away from the government.

Power from the plant will be delivered through Zambia’s national grid, operated by ZESCO, supporting regional electricity trade while avoiding additional public liabilities.

Developers say the project demonstrates a scalable model for private renewable energy investment in Africa, combining blended finance with market-based power offtake to unlock clean energy development.