Globeleq Secures US$52.1 Million Financing for 40 MW Kafue Solar Project in Zambia

Globeleq has reached financial close on the Kafue Solar Project, a 40 MWac (56 MWp) solar photovoltaic power plant near Kafue Town, Lusaka Province, Zambia.

The project was selected under Zambia’s GET FiT programme and will supply electricity to ZESCO through a 25-year power purchase agreement. Led by Zambia’s Ministry of Energy in partnership with the German Development Bank (KfW), the GET FiT initiative seeks to attract private investment in small- and medium-scale renewable energy projects.

Globeleq is the project’s sole owner and will oversee its construction, asset management, operations and maintenance. Long-term financing totalling USD 52.1 million has been secured from the Dutch entrepreneurial development bank FMO and British International Investment (BII), with contributions of USD 27.6 million and USD 24.5 million, respectively. Standard Bank South Africa will serve as the security trustee. In addition, the project has received grant support from the Norwegian Agency for Development Cooperation to cover part of the grid connection costs and specific upgrade works at ZESCO’s Kafue Town substation.

Globeleq appointed Solarcentury Africa as its technical development partner, contributing specialist expertise to support the project’s development. Solarcentury Africa has since been selected as the engineering, procurement and construction (EPC) contractor, working in consortium with Zambia-based Alensy Energy Solutions.