GreenCo announces $1.5 m investment by Danish fund

BUUMBA CHIMBULU writes@SunZambianAFRICA GreenCo Group, together with its Lusaka-based operating company GreenCo Power Services has announced the investment of US$1.5 million by Denmark’s Investment Fund for Developing Countries (IFU) and Private Infrastructure Development Group’s InfraCo Africa to operationalise a new business model for renewable energy.This investment completes GreenCo’s operational establishment in Lusaka as an intermediary renewable energy buyer/supplier and power services provider and is a precursor to the 2021 capitalisation of credit support for Independent Power Purchasing Supply (IPPs).InfraCo Africa’s Chief Executive Officer, Gilles Vaes, said the challenges of developing new renewable electricity production in Zambia were great and would require the combined efforts of initiatives such as GreenCo.Mr Vaes said his company looked forward to working with GreenCo in helping it to become operational.“GreenCo’s initiative of intermediary power off taker and power trading company is highly innovative and will help the Zambian electricity sector prepare for the future, working together with Zesco and other key sector stakeholders,” he said.GreenCo and its investors are focused on supporting the Government of Zambia, as well as the governments of other countries in the Southern African Development Community (SADC) region, in the opening of their electricity markets.The company’s operations will contribute towards the implementation of the Government of Zambia’s vision for the electricity sector as set out in the National Energy Policy 2019 and subsequent new energy sector legal and regulatory framework.Energy Minister, Matthew Nkhuwa, said the operationalisation of GreenCo was a great example of national action, and international co-operation, as Zambia strive to deliver affordable energy for all.Mr Nkuwa said “Notwithstanding the current global economic uncertainty due to the COVID-19 pandemic, it is important that we plan for the future, one where renewable energy helps drive sustainable social and economic growth in Zambia.”Zesco Managing Director, Victor Mundende said the power utility company looked forward to working with GreenCo to deliver a mutually beneficial business mode“Innovative solutions such as GreenCo could play an important part in providing alternative off-taker participation in the Zambian ESI, to make new generation projects more easily bankable whilst encouraging the maturation of electricity markets to encourage electricity trade,” Mr Mundende said. The Sun