DBTIEnergy

Ilute Solar Project, Zambia

Ilute Solar Project, Zambia

The Ilute Solar Project in western Zambia adds 32 MW of clean solar power under a regional PPA, improves energy reliability, lowers emissions, and uses a finance model that avoids heavy government debt.

In Zambia’s western region there has been a need for more power because sometimes the grid is weak and people lose power. In June 2025 a plan got financing to build the Ilute Solar Project, a 32-megawatt solar power plant.

 

The project will provide power into the Southern African Power Pool so more people have reliable electricity. It is set up by SEFA (an African Development Bank energy fund), GreenCo Power Services Ltd, and local partners. They made a deal so that buyers of the electricity via a Power Purchase Agreement will pay for the power, ensuring it’s financially sustainable.

 

By doing this, the project adds clean energy, helps reduce pollution, supports jobs during build and operations, and shows how renewables can be done without needing the government to take on big debt. It becomes a model for other countries in the region.

Project Impact

Adds 32 MW of solar to local supply, increasing capacity.
Helps reduce Zambia’s reliance on imported power / non-renewables.
Provides cleaner energy, lowers pollution.
Using a Power Purchase Agreement via regional market, avoids burdening national government finances.
Encourages more private investment in renewables by showing workable model.
Improves electricity reliability for nearby communities.

The project helps Zambia meet its renewable energy targets and can improve energy security in droughts, since Zambia relies heavily on hydropower which can be disrupted by low water levels. (While not always explicitly stated for Ilute, this is part of the national context.)

Working Process

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01
Step
SEFA provides financing as part of a larger investment group.
02
Step
Use of Independent Power Producer (IPP) model.

Other Important Info

  • This project uses innovative financing avoiding sovereign guarantees (helps show how to finance clean energy without burdening government debt). African Development Bank
  • The project helps Zambia meet its renewable energy targets and can improve energy security in droughts, since Zambia relies heavily on hydropower which can be disrupted by low water levels. (While not always explicitly stated for Ilute, this is part of the national context.)

Project Information

Energy Players

African Development Bank’s SEFA, GreenCo Power Services Ltd, the Zambian government, regional power traders, private investors

Category

Solar power plant / utility-scale installation / renewable energy generation / regional energy trade

Start Time

June 2025

End Time

Ongoing

Budget

~ US$26.5 million

Location

Western Zambia

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