Africa GreenCo and AXIAN Group have signed a Power Purchase Agreement (PPA) for the development of the 200 MW Kudu solar photovoltaic project in Zambia, marking a significant step towards expanding renewable energy generation and strengthening regional electricity trading across Southern Africa. The project is expected to supply clean electricity to industrial, commercial, and other consumers through the Southern African Power Pool (SAPP).
The agreement was signed during the Energy Forum for Africa 2026, held in Lusaka, Zambia. The Kudu solar project will have an installed capacity of 200 MW alternating current (MWac), equivalent to 240 MW direct current (MWdc). Once operational, the facility is expected to generate approximately 530 GWh of renewable electricity annually, contributing to Zambia’s clean energy capacity and supporting growing electricity demand across the region.
Under the agreement, Africa GreenCo will purchase electricity generated by the Kudu solar facility and sell it to customers across the Southern African Power Pool. The potential buyers include electricity utilities, mining companies, agricultural businesses, and other commercial consumers. This arrangement will enable electricity generated in Zambia to reach customers in neighbouring countries through regional power trading networks.
The agreement reflects the growing role of independent power producers and electricity trading companies in developing Africa’s renewable energy sector. By connecting electricity generation with multiple buyers across different markets, the trading model could provide solar developers with broader market access and create opportunities for investment in renewable energy infrastructure.
Standard Bank Group and Stanbic Bank Zambia are providing financial and advisory support for the project. Their involvement is expected to help advance the development towards financial close and construction. Finalising the financing arrangements will be a key milestone before construction can begin.
The project is also expected to support Zambia’s efforts to diversify its electricity generation sources. The country has historically relied heavily on hydropower, leaving electricity supplies vulnerable to droughts and changing rainfall patterns. Additional solar generation could help reduce this dependence, improve the resilience of the electricity system, and provide an alternative source of power during periods of limited hydropower availability.
Beyond Zambia, the Kudu solar project could contribute to regional energy security by increasing the availability of renewable electricity for businesses and industries across Southern Africa. Cross-border power trading through the Southern African Power Pool provides a mechanism for connecting new generation capacity with electricity demand in neighbouring markets.
The project’s progress will depend on completing financing, construction, and the necessary transmission arrangements. Once operational, the facility is expected to strengthen Zambia’s renewable energy pipeline, support industrial activity, and contribute to the region’s long-term transition towards cleaner and more diversified electricity supplies.
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