COP 28 delivered clean energy deals for Africa

The climate summit in Dubai has provided the ground for the signing of several major agreements on clean energy in Africa, a continent that has vast potential but still faces challenges from low access and high costs of electricity. The deals, worth billions of dollars, aim to boost renewable energy development and climate action in various African countries, as well as to foster regional cooperation and integration.



GreenCo signs PPA for Zambia's first solar project amid several Africa focused deals

Africa GreenCo Group, a London-based intermediary renewable power buyer and seller, has signed a power purchase agreement with Serengeti Energy and Western Solar Power for the Ilute Solar PV Project in Zambia, one of several deals to boost renewable energy development in Southern Africa.

The 25MWac Ilute Solar PV Project, developed by Western Solar Power, a Zambian renewable energy developer, and Serengeti Energy, an African renewable energy independent power producer owned by a group of development finance institutions, will be the first utility-scale solar project in the country. It will supply power to the national grid, operated by Zambian National Power Utility, ZESCO Limited.

The PPA, signed at the COP 28, follows the successful execution of a system operations agreement signed in October between GreenCo and ZESCO, which allows GreenCo to act as an intermediary buyer and seller of renewable power in Zambia. GreenCo, which is backed by the British and Danish governments, among others, aims to increase private sector participation and investment in the African power sector by providing creditworthy offtake and risk mitigation solutions. It also hopes to foster regional power trade and integration through the Southern African Power Pool (SAPP), while connecting with other power pools and markets in the continent.

Zambia has long relied on hydropower to meet its electricity needs. But droughts and climate change have made this source unreliable and expensive. The Ilute Solar PV Project, with direct foreign investment of US$37 million, is expected to contribute to the southern Africa country's renewable energy targets and energy security. The project will also support GreenCo's mission to increase private sector participation and investment in the African power sector by providing creditworthy offtake and risk mitigation solutions.

The PPA for the Ilute Solar PV Project is one of several deals signed at COP 28.

A 150-megawatt solar plant in southern Angola, to be developed by Masdar, the UAE's flagship renewable energy company, and the Angolan Ministry of Energy and Water. The project will be the largest solar plant in sub-Saharan Africa and will provide clean energy to more than 250,000 households and businesses.

A wind farm on Sherbro Island in Sierra Leone, to be developed by Octopus Energy, a UK- based green energy supplier, and Sherbro Alliance Partners, a social enterprise co-founded by Iris Elba and Siaka Stevens. The wind farm will power up to 300,000 homes and create 250 local jobs.

A 25-megawatt solar PV plus 5- megawatt-hour battery storage project in Djibouti, to be developed by AMEA Power, a Dubai-based renewable energy developer, and the Djiboutian Ministry of Energy and Natural Resources. The project will double its capacity to 50-megawatt plus 10-megawatt-hour battery storage in its second phase.

A 300-megawatt wind energy project in Ethiopia, to be developed by AMEA Power and the Ethiopian Electric Power (EEP) and the Ethiopian Ministry of Finance. The project, named Aysha One, will be the largest onshore wind project in the Horn of Africa and the first independent power producer (IPP) project in the country. AMEA Power says it is on track to sign the power purchase agreement and the implementation agreement for the project.

A 20-megawatt solar PV project in the West Nile Region of Uganda, to be developed by AMEA Power and the Emerging Africa Infrastructure Fund (EAIF) and its liquidity supporter, African Trade and Investment Development Insurance (ATIDI). The project, named Ituka, marks AMEA Power's first green field IPP transaction in East Africa. AMEA Power has announced the successful project financing decision with EAIF and ATIDI for the project.

A $150m agreement between AMEA Power and BNI of Mozambique for a new solar PV plant, in addition to a MoU with Infinity Power for up to 1 GW of renewable energy projects in the country, and an agreement between state-utility EDM and Africa50 for the 100 MW Chicamba floating solar project, 100 MW Montepuez solar PV plant, and 60 MW Angoche solar PV plant.

Two deals to increase solar generation capacity in Togo, including an extension of AMEA Power’s flagship Sheikj Mohammed Bin Zayed Solar Project to 100-megawatt and 14-megawatt-hours of battery storage, and a 25-year Concession Agreement with Meridiam and EDF for the 64 MW Sokode Solar PV Plant.

Two major agreements with Nigeria to deliver liquefied natural gas (LNG) to the domestic and international markets, signed by the country’s state-owned oil company, NNPC Ltd. The first agreement was signed with Wison Heavy Industry Co. Ltd., a Chinese company, for the development of a floating LNG project in Nigeria that will target the international LNG market. The second agreement was signed with SDP Services, an independent oil and gas company, for a 421 tonnes per day LNG project that will target the domestic LNG market. The project, located at Ajaokuta in Kogi State, Central Nigeria, aims to ensure the efficient supply of LNG to the Autogas/Compressed Natural Gas (CNG) and industrial/commercial customers nationwide. The project is expected to be operational by December 2024.

Kenya strikes multiple deals for green development
Kenya, another African country with a strong presence at COP 28, has also announced several deals worth a total of 4.48 billion US dollars for green development in the country. The seven separate deals seek to among others reinforce a commitment to develop a milestone green energy and fertilizer projects together as well as energy supply chains initiatives. The investors will work together with the government of Kenya to educate and upskill the next generation of workers in a bid to empower local economies. The deals notably include:

A $1 billion geothermal project at Suswa with the Indonesian government, through Masdar-backed Pertamina Geothermal Energy, to develop a 300-megawatt geothermal power plant that will supply electricity to the national grid and support industrial development.

An $800 million US dollar geothermal project at Paka with AMEA Power, a Dubai-based renewable energy developer, and Geothermal Development Co. of Kenya, to develop a 200-megawatt geothermal power plant that will also feed into the national grid and enhance energy security.

A $600 million data centre at Olkaria powered by green geothermal energy in partnership with EcoCloud, a US-based cloud computing company, to provide data storage and processing services to local and international clients.

A $200 million Clean Energy Supply Chain (CESC) initiative in partnership with the World Bank, the African Development Bank, and the International Finance Corporation, to develop a network of mini-grids, solar home systems, and clean cooking solutions to serve rural and peri-urban communities.

A $110 million US dollar geothermal project for 35-megawatt with Globeleq, a UK-based power producer, at Menengai, to expand the existing geothermal capacity and diversify the energy mix.

These deals demonstrate the growing momentum and commitment of the public and private sectors to accelerate the energy transition and combat climate change in Africa and beyond. They also show that renewable energy is not only good for the planet, but also good for business.