Africa GreenCo Receives Approval from Government of Zambia to Implement Transformative Renewable Energy Business Model
Publication Date
2019-12-12
About
P4G Contact: Sangeetha Sarma: sangeetha.sarma@p4gpartnerships.org
Washington DC, December 12, 2019—The Government of Zambia approved the introduction of Africa GreenCo as a creditworthy intermediary renewable energy purchaser to improve the country’s access needs and to mitigate against the negative impacts of climate change. This major milestone will accelerate Africa GreenCo’s operationalisation, enabling it to attract sustainable investors in the power sector and bring greater efficiencies in both the demand and supply side of the country’s energy industry.
A P4G (Partnering for Green Growth and Global Goals 2030) 2019 Scale-Up partnership, Africa GreenCo is a public-private partnership that will support the expansion of renewable energy supply through new investments and reduced prices. In 2019, P4G awarded Africa GreenCo $1 million in scale-up funding and the partnership has also secured a $45 million commitment from Agence Française de Développement backed by the European Commission’s European Fund for Sustainable Development.
“We’re grateful to the Government of Zambia for its support of Africa GreenCo and for taking this critical step. This is a momentous accomplishment that could transform the power sector in Zambia and other countries in Southern Africa,” said Robyn McGuckin, Head of Partnerships, P4G. “The ripple effects of a stable energy sector in Zambia will be felt across all areas in the country from education to improved access to health care, and will stimulate sustainable economic development.”
Africa GreenCo will not own or operate any grid infrastructure or replace existing utilities. Instead, it will complement them and optimize the existing power sector in Zambia by mitigating credit risks on a portfolio basis and encouraging private sector investment that would enable quicker growth.
"Today, we need true paradigm shifts toward low-emission and climate-resilient sustainable development in order to reduce the negative impacts of climate change on sustainable development and growth of Zambia and the Southern African region. We are delighted to be working with the P4G, Africa GreenCo, the Green Climate Fund and a number of Zambia’s key cooperating partners to ensure that new business models, innovation and systemic change is delivered on the ground and felt by those most in need. Through this model we can attract the significant amount of funding required to harness Zambia’s abundant renewable energy resources,” said Honourable Alexander Chiteme, MP, Minister of National Development Planning, Zambia.
“Through its role as a creditworthy intermediary, GreenCo will be well placed to provide an efficient link between small-to-medium sized renewable energy projects and the wider market, aggregating and diversifying supply and demand side risks, and helping to improve market structure and liquidity – a prerequisite for attracting significant funding to diversify the existing power system at a lower generation tariff”, said Ana Hajduka Founder and CEO of Africa GreenCo and GreenCo Power Services Limited – the operating company in Zambia.
Africa GreenCo hopes to begin operations in Zambia next year and expects to expand to eSwatini, Namibia, South Africa, Zimbabwe and other countries in Southern Africa. The long-term goal of the partnership is to replicate the model across Africa. Within 12 years, it aims to mobilize $5.6 billion in renewable energy investments.
About P4G
P4G – Partnering for Green Growth and the Global Goals 2030 – is funding over 30 public-private partnerships with projects in developing countries. P4G is a collaborative partnership among 12 partner countries: Bangladesh, Chile, Colombia, Denmark, Ethiopia, Indonesia, Kenya, Mexico, the Netherlands, the Republic of Korea, South Africa and Vietnam. P4G is funded by the governments of Denmark and the Netherlands and hosted at World Resources Institute. Other partner organizations include C40 Cities, Global Green Growth Institute, International Finance Corporation, World Economic Forum and the United Nations Global Compact.