A Nairobi-based energy holding company has teamed up with international finance institution Norfund and investment company Vineyard to create a new joint venture company, New Africa Power.
New Africa Power has committed $4.6 million for the feasibility phase of the development, which is expected to be completed by Q3 of 2018.
The consortium has already finalised an intensive site survey, hydrological assessments as well as initial socio and environmental impact assessments.
In a next step, the venture company will develop the projects for submission under the renewable energy feed in tariff programme, thereby ensuring alignment with the government’s economic and social development programmes.
The Zambian government recently made the Renewable Energy Feed-in Tariff (REFiT) Strategy official. Read more..
New Africa Power hydropower projects
The development activities will be implemented by contracted specialist service providers including South Africa-based REH Project Development and the energy holding firm as project managers and Aurecon Consulting Engineers as technical consultants.
Construction on the first power plant is expected to start from 2020.
Kjell Roland, CEO at Norfund, said: “Increased access to energy is crucial for development and poverty reduction. Investing in clean energy projects is therefore of high priority for Norfund.”
Roland added: “Our experience is that successful clean energy projects are depended on well-prepared and agreed private public partnership. We appreciate that this is now in place for this project on hydropower generation in Zambia.”
Joseph Nganga, executive director of the responsAbility-managed renewable energy company for Africa, explained: “This is a perfect example of how we are working closely with experienced developers such as REH and like-minded investors such as Norfund to support governments in Africa to meet their countries’ energy needs.”
Featured image: Stock