The Board of Directors of the AfDB has approved $50 million framework financing for small-scale renewable energy projects in Zambia. The financing is to help diversify Zambia’s energy generation currently heavily reliant on hydro-electricity.
Facing a serious electricity supply deficit due to recent droughts, Zambia’s government launched the Renewable Energy Feed-in-Tariff (REFiT) policy in 2017 to crowd-in private investments for small-scale (up to 20 MW) renewable projects. The “Global Energy Transfer Feed-in Tariffs” (GETFiT) Zambia Program has been designed to facilitate the implementation of the REFiT Policy.
The framework aims to finance 100 MW of renewable energy projects, primarily solar PV, to be selected under the GETFiT Zambia Program.
This is the first program that will be co-financed by the Green Climate Fund (GCF) and the AfDB following the signing of the Accreditation Master Agreement on November 8, 2017 between the two institutions, making the bank a credited implementer of GCF-approved projects. The Board of the GCF approved $52.5 million for the framework during its 19th Board Meeting in February 2018.
“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 African Development Bank’s Vice-President for Power, Energy, Climate and Green Growth, Amadou Hott.