GreenCo closes $1.5 M investment to empower operations in Zambia
GreenCo announced the investment of $1.5 M by Denmark’s Investment Fund for Developing Countries and Private Infrastructure Development Group’s InfraCo Africa.
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Zambia, Lusaka: Africa GreenCo Group and GreenCo Power Services (GreenCo) announced the investment of $1.5 M by Denmark’s Investment Fund for Developing Countries and Private Infrastructure Development Group’s InfraCo Africa.
This investment completes GreenCo’s operational establishment in Lusaka as an intermediary renewable energy buyer/supplier and power services provider and is a precursor to the 2021 capitalisation of their credit support for IPPs.
Zambian minister of energy, Matthew Nkhuwa, commented on the announcement: “The operationalisation of GreenCo is a great example of national action, and indeed international cooperation, as we strive to deliver affordable energy for all. Notwithstanding the current global economic uncertainty due to the COVID-19 pandemic, it is important that we plan for the future, one where renewable energy helps drive sustainable social and economic growth in Zambia.”
The renewables company underlined that its transformative role is to mobilise significant private sector investment for renewable energy, to strengthen the national and Southern African Power Pool electricity markets, and to facilitate a shift away from the current single buyer model.
The region has great renewable energy potential and is in urgent need for more energy generation to support economic recovery and provide clean and affordable energy to its citizens. GreenCo says its model offers key innovations in the architecture of the electricity market and achieves better value – with more electricity generation and improved security of supply – in partnership with established industry players.
The company’s operations will contribute towards the implementation of the Government of Zambia’s vision for the electricity sector as set out in the National Energy Policy 2019 and subsequent new energy sector legal and regulatory framework. This represents an important step in scaling-up renewable energy investment to help mitigate climate change, improve security of supply, and increase efficiency in the power sector.
Source: ESI Africa