AFRICA GREENCO

Zambia will soon have a new creditworthy intermediary renewable energy power purchaser: GreenCo Power Services Limited (GreenCo).

GreenCo will act as:

• Renewable energy creditworthy power buyer and seller: GreenCo buys power from small to medium sized IPPs, on-selling through longterm contracts to utilities and private buyers; it also executes shorter-term trades on the SAPP;

• Aggregator of risk and risk capital: Strongly capitalised, GreenCo assumes credit risk of utilities and private buyers, resulting in reduced tariffs;

• Operational aggregator of renewable

energy supply;

• Downside support: Where buyers fail to pay, GreenCo sells to alternative buyers or through SAPP markets; where termination scenarios arise, GreenCo uses its capital structure to cover outstanding commercial project debt in affected IPPs;

• Champion of new renewable energy services and innovations for the region in partnership with the public sector.

GreenCo will be embedded in the local and regional electricity sector and will be able to take practical steps to diversify and mitigate risk, catalysing sustainable structural market change, and supporting growth of national and regional electricity markets. GreenCo will operate as a member of regional power pools and will mitigate both demand-side and supply-side risks. GreenCo will help unlock the private capital required to meet Sustainable Development Goals at reduced cost, with less reliance on host government support, and at lower generation tariff to utilities.

Whilst GreenCo will start operations in Zambia, it will provide regional market support and become a renewable energy offtaker in neighbouring countries.