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Africa GreenCo Group, through its Zambian-based operating company, GreenCo Power Services Limited has announced the execution of a System Operations Agreement (SOA) with ZESCO Limited.
The execution defined the operational parameters for GreenCo’s supply of electricity from the 25 megawatts Ilute Solar PV plant to be constructed in Western Province of Zambia into ZESCO’s power grid system and subsequently sold into the Southern Africa Power Pool (SAPP).
The SOA was officially signed by the ZESCO Managing Director, Victor Mapani, and GreenCo Chief Executive Officer, Ana Hajduka, last month, according to a statement issued on Saturday.
Mapani in his comment on the execution of the SOA stated that ZESCO was determined to allow for more private participants onto the electricity supply industry in an amenable manner because Zambia was open for business.
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“The execution of the SOA signifies a ground-breaking development for the nation’s energy landscape and highlights Zambia’s commitment to fostering a competitive, equitable and sustainable power sector,” he said.
Hajduka expressed gratitude to ZESCO and the government for its continued support of GreenCo’s business .
“The successful execution of the System Operations Agreement with ZESCO is a significant milestone on the road to implementing a ground-breaking project.
“More importantly, it contributes to the development of a market framework that facilities greater private investment and operational integration with the national utility in a synergistic manner and bodes well for the future-readiness of Zambia’s electricity sector,” she said.
Situated in Sesheke District of Western Province, the 25MW Ilute Solar Power Project is said to be the first of its kind in Africa, using the competitive markets of the SAPP to mitigate customer default risk by leveraging the diversified customer base in contrast with the traditional practice of transferring project risk to the national treasury.
ZESCO would be compensated by GreenCo for providing system operations services.
The Ilute Solar project is being developed by a consortium comprising Western Solar Power, a Zambian developer and Serengeti Energy.
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