Africa GreenCo and AXIAN Group have signed a Power Purchase Agreement (PPA) for the 200 MW Kudu solar project in Zambia. The project will expand solar power generation and support cross-border electricity trading across Southern Africa. It will supply electricity to industrial, commercial, and other consumers through the Southern African Power Pool (SAPP).
The Kudu solar plant will have an installed capacity of 200 MW AC and 240 MW DC. Once operational, it is expected to generate about 530 GWh of electricity annually, adding to Zambia’s renewable energy supply and helping meet rising electricity demand across the region.
Under the agreement, Africa GreenCo will purchase electricity from the Kudu solar plant and sell it to customers across the Southern African Power Pool. Potential buyers include electricity utilities, mining companies, agricultural businesses, and other commercial consumers. The arrangement will allow Zambia to supply solar power to neighboring countries through regional electricity trading networks.
The agreement highlights the role of independent power producers and electricity traders in expanding renewable energy generation across Africa. By connecting solar developers with multiple buyers, this model could open up more markets for electricity sales and attract investment in new power generation projects.
Standard Bank Group and Stanbic Bank Zambia are providing financial and advisory support to the project. Their involvement will help advance preparations for financing and construction. The developers must complete the financing arrangements before construction can begin.
The project will also help Zambia diversify its electricity supply. The country relies heavily on hydropower, making generation vulnerable to droughts and changing rainfall patterns. Adding solar power could reduce this dependence, improve electricity supply reliability, and provide an alternative source of generation when water levels fall.
The Kudu solar project could also improve electricity availability for businesses and industries across Southern Africa. Through the Southern African Power Pool, the project will connect Zambia’s new solar generation capacity with electricity buyers in neighboring markets.
The next steps include securing financing, completing construction preparations, and arranging the necessary transmission infrastructure. Once operational, the 200 MW facility will increase Zambia’s solar power capacity, support industrial electricity demand, and contribute to a more diversified regional energy supply.
source: solarquarter.com
African Energy Council