Africa GreenCo is a creditworthy renewable energy buyer and seller that will reduce energy prices and expand renewable energy supply across southern Africa while facilitating local and regional power trade.
P4G invested a total of US $1.6 million in this partnership through two rounds of funding – 2018 and 2019 scale-up funding.
In 2021, Africa GreenCo secured regulatory approval in Zambia and began operations with a 25MW solar photovoltaic pilot project. The significance of this achievement is twofold: at a high level, it underscores the potential success and transformation achieved by multistakeholder partnerships for green growth; and on the ground level, it increases energy investment through the private sector to help mitigate climate change, improve security of supply, and improve efficiency in the power sector. GreenCo, which was admitted to the Southern Africa Power Pool (SAPP) in 2021, is actively expanding to other African countries and aims to support three gigawatts of new renewable energy generation capacity and mobilize US$5.6 billion of renewable energy investment by 2030.
P4G mobilized its ecosystem to engage with policymakers in Zambia to approve the business model. P4G accelerated GreenCo through on-going strategic advice and by engaging institutional investors to capitalize the business model. This focused approach of unlocking investments for impact ultimately led to an initial investment of $1.5 million from Denmark’s Investment Fund for Developing Countries and PIDG’s InfraCo Africa to operationalize the GreenCo business model. In May 2022, GreenCo announced it raised $15.5 million in financing to develop an initial portfolio of up to 110 MW of renewable energy and scale its innovative offering as Zambia’s first renewable energy buyer and services provider.
Transforming Africa’s Renewable Energy Markets
South Africa , Zambia,
P4G’s support, both financial and strategic, has been pivotal in GreenCo’s ability to progress and attract investment. This has included timely direct engagement with political leaders and investment partners to reinforce GreenCo’s vision and stimulate action. P4G provides a rare and invaluable bridge between concept development and commercialisation – such support is essential for innovative, ambitious, scalable, SGD-aligned business models to fulfil their potential.