Serengeti Energy and Western Solar Power, through their project company Ilute Solar Limited, have reached another important milestone with the signing of an Implementation Agreement for the 32MWp Ilute Solar PV Project in Sesheke, in the Western Province of Zambia. This achievement marks one of the final project milestones and follows the successful negotiation and signature of the project’s Grid Connection Agreement with ZESCO in December 2024 and earlier signature of the Power Purchase Agreement with Africa GreenCo in December 2023.
The Ilute Solar PV Plant represents a transformative step forward for the Southern African energy landscape as it is Africa’s first non-recourse project financed project that sells directly to the South African Power Pool (SAPP) Day Ahead Market (DAM), with Africa GreenCo acting as the offtaker. The successful project financing of a major energy project using market risk, utilising competitive and open-access markets, will promote development of sustainable energy projects across the region.
At an estimated cost of USD 37 million, the Ilute Solar PV Project constitutes a major foreign direct investment aimed at strengthening local energy infrastructure, expanding access to clean energy and enabling cross-border electricity trading within the SAPP.
By enhancing the ability of utilities and commercial end users to import power across the whole region, the project improves the overall stability and reliability of Southern Africa’s energy supply.
With key project documents now signed, Ilute Solar Ltd is projected to achieve financial close and start construction in the first half of 2025.