The African Development Bank (AfDB) has approved $50 million framework financing for small-scale renewable energy projects in Zambia.
Due to recent droughts, Zambia has experienced a severe electricity supply deficit. In response to this issue, the Zambian government launched the Renewable Energy Feed-in-Tariff (REFiT) policy in 2017 that will allow better investments in small-scale renewable projects.
Primarily made up of solar PV, the aim of the Framework is to finance 100MW of renewable energy projects and are to be selected under the GETFiT Zambia Programme.
According to a report by ESI Africa, this will be the first programme to be co-financed by the Green Climate Fund (GCF) and the AfDB, who became a credited implementer of GCF-approved projects following the signing of the Accreditation Master Agreement on 8 November 2017.
During its Board Meeting in February 2018, the GCF approved $52.5 million for the Framework, $50 million of which will be loans, while $2.5 million will be made up of a technical assistance grant.
“This is an innovative financing framework that enables the transition to sustainable energy in Zambia, and an important milestone in our partnership with the GCF,” said the AfBD’s vice-president for power, energy, climate and green growth, Amadou Hott.
By Daniëlle Kruger
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