By: Ecofin agency

Africa GreenCo and Serenje Energy have signed a memorandum of understanding for a 20-year power purchase agreement (PPA) to develop the 25 MW Lusanje solar plant in the Lusaka South Multi-Facility Economic Zone. The announcement was made at the Africa Energy Forum (EFFA 2025), which closed on Friday, September 12, marking another step in Zambia’s energy transition.

Once operational, the plant will feed clean electricity into the national grid, supporting industrial growth, improving supply reliability, and strengthening resilience for households and businesses, GreenCo said. The project is structured without a sovereign guarantee, highlighting Zambia’s ability to attract private capital into the power sector on the back of credible reforms.

The deal follows the 32 MWp Ilute solar park launched in June 2025 by Serengeti Energy and Kwama Energy, also backed by a PPA with GreenCo and concluded without state guarantees. The repetition of this model points to the emergence of a framework where the financial strength of private off-takers replaces government backing.

At the same time, Zambia is advancing large-scale solar projects. Since late June, the Mailo plant developed by ZESCO and Solar Century Africa has started injecting 25 MW into the grid, out of a planned capacity of 110 MW. The country is targeting 1,000 MW of installed solar capacity by the end of 2025 to reduce reliance on hydropower, which remains vulnerable to droughts.

With two consecutive PPAs signed without sovereign guarantees and public investment ongoing, Zambia is positioning itself as a key renewable energy market in Southern Africa. If sustained, this momentum could provide a credible alternative to traditional models and encourage other African countries to diversify financing tools for renewable energy.