GreenCo invites bids for its first solar with BESS in Zambia

From the newsletter

Africa GreenCo Group (GreenCo), a renewable energy buyer and trader, has issued a request for information (RFI) to energy companies for its pilot solar project with battery storage in Zambia. This RFI is a preparatory step towards a competitive procurement process, which is expected to launch in the second half of 2025.

• The RFI will seek to identify viable battery energy storage system (BESS) providers capable of supporting GreenCo’s goal of procuring BESS of up to 25 MW/100 MWh.

• The Zambian electricity sector faces grid challenges, including an inadequate power supply, which GreenCo aims to address.

More details

• Greenco operates in four countries in the southern Africa region: Zambia, South Africa, Zimbabwe, and Namibia. The company purchases power from renewable energy generators and sells it to utilities, private sector off-takers (i.e., commercial and industrial users), national power trading markets, and the competitive markets of the Southern African Power Pool (SAPP).

• Since its inception in 2015, the company has traded over 1 TWh of electricity. It has developed a project pipeline exceeding 10 GW and secured over $100 million in approved funding.

• Electricity access in Zambia remains low, and the available capacity is insufficient to meet demand. This is despite only around 31% of the Zambian population having access to electricity, with a significant disparity between urban (67%) and rural areas (14.5%).

• There have been many developments in the energy space in the past year. Some recent developments in 2025 include the granting of $292 million for the Zambia-Tanzania Interconnector Project (ZTIP). This was followed by the $8 million funding to construct the 25 MW Ilute solar project, which is set to begin construction early this year.

• Zambia last week launched its open electricity access market, allowing independent power producers (IPPs) and large consumers to access the grid and trade electricity directly. This is expected to create a more competitive and transparent market within the country. The new metering regulations also came into effect in early February, further supporting this market evolution.

• Greenco is well-positioned to benefit from these developments. The company in October 2024 secured Electricity Trading and Import/Export Licences in South Africa from the National Energy Regulator of South Africa (NERSA), enabling it to trade electricity domestically and engage in cross-border trade within the SAPP. 

• Its Zimbabwean subsidiary, ZimGreenCo Power Services, received a supply licence in early 2024, enabling it to operate in Zimbabwe's electricity market. GreenCo has in 2024 received $27 million from GuarantCo and $40 million from the US International Development Finance Corporation (DFC) for its renewable energy projects.

Our take

• Zambia's electricity demand is projected to grow to around 8,000 MW by 2030 and potentially 10,000 MW by 2040, driven by population growth and urbanisation. This growth will create a larger market for renewable energy, presenting an opportunity for energy companies like Greenco to expand their operations.

• The recent launch of the open electricity access market marks a significant shift towards a more competitive landscape. This change brings a more level playing field, encouraging greater participation from various players in the energy sector. It also opens up opportunities for vertical integration, allowing energy sector players to diversify their operations and participate in various levels of the electricity market including generation, transmission, distribution, and trading.

• Increased competition in Zambia's electricity market is likely to drive down energy prices, benefiting consumers and businesses alike. As more players enter the market, companies will need to offer competitive tariffs to attract customers. This competition can lead to lower electricity costs, making electricity more affordable and accessible to a wider population.