Serengeti Energy, a renewable independent power producer, closed $26 million in project financing from a syndicate of lenders for the development of the 32 MWp Ilute solar project located in Western Zambia.
The financing is led by the Dutch entrepreneurial development bank (FMO), alongside The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB), Triodos Investment Management, and EDFI Management Company, through the EU-funded Electrification Financing Initiative (Electrifi).
The solar project is expected to commence construction in January 2026, with an anticipated construction period of approximately 12 months.
A market-based power purchase agreement has been signed with GreenCo Power Services, a licensed private power trader in the South African Power Pool (SAPP).
The project is backed by equity capital from Serengeti Energy and its Zambian minority shareholder and partner, Kwama Energy.
China Power Engineering Consulting Group is providing the engineering, procurement, and construction services for the project. A full notice to proceed is expected to be issued shortly, positioning the project to achieve commercial operations by the end of 2026.
“Direct participation in the Southern African Power Pool represents an important step toward modernizing electricity markets in our region. The Ilute Solar Project demonstrates that market-based trading can unlock investment, reduce reliance on government guarantees, and strengthen energy security across borders. This milestone would not have been possible without the committed support of the Government of Zambia, ZESCO, our financing partners, and GreenCo,” said Anton-Louis Olivier, CEO, Serengeti Energy.
According to Mercom’s 9M and Q3 2025 Solar Funding and M&A report, large-scale project funding increased by 43% in the first nine months of 2025 compared with the same period in 2024.
Recently, CleanCapital, an independent power producer focused on distributed clean energy, including solar and energy storage, announced the completion of a $185 million private placement debt. The debt facility will be used to finance a portfolio of 156 distributed generation projects totaling more than 180 MW, spanning solar and energy storage assets across the U.S.
