In large parts of southern Africa, businesses and homes are plagued by power outages. Many places in Zambia have less than three hours of power per day. It slows down economic growth and development in the country.
Zambia is hugely dependent on hydropower, which is a low-emission energy source. The problem is that climate change leads to longer periods of drought, resulting in a lack of electricity in the grid. The country also has huge opportunities for solar energy when the water is missing, but solar parks are not being built because of a lack of capital.
This is where Africa GreenCo comes in. The company guarantees to purchase power from solar parks across southern Africa. In Africa, thousands of megawatts of solar and wind power are ready to be built, but without the guarantee that someone will buy the power, the plans will never become reality.
Africa GreenCo is a new type of energy trader in the region. They buy power from energy suppliers and pass it on to utilities and local businesses. It is a link that Impact Fund Denmark really sees missing in many places in Africa to ensure growth and green energy.
Impact Fund Denmark makes an additional investment in the company in the form of a loan of USD 6 million (approx. DKK 39 million), and furthermore, the European Commission provides a guarantee through Impact Fund Denmark of EUR 50 million (DKK 373 million). GreenCo will thus have greater financial security. This means that new solar and wind projects can be established, and the region can have a more stable and green energy supply.
We are solving a very specific problem. With the guarantee and loan, GreenCo will become a stable partner that can facilitate massive expansion of renewable energy in the region.
GreenCo is already buying power from its first 100 MWp solar agreement in Zambia.
Managing Director and Co-head of Green Energy & Infrastructure
Thomas Hougaard
+45 33 63 75 46
Senior Investment Manager, Green Energy & Infrastructure
Magnus Nilsson
+45 33 44 12 12
