AXIAN Energy and Africa GreenCo signed a power purchase agreement on 8 October in Lusaka for the planned Kudu solar plant in Zambia, with a capacity of 200 megawatts in alternating current and 240 megawatts-peak. The project is expected to generate around 530 gigawatt-hours a year, according to the two partners.

Africa GreenCo will buy electricity from the plant and then sell it to state-owned utilities, mines, agricultural businesses and other commercial customers connected to the Southern African Power Pool. This arrangement gives the producer access to a broader market than a single national buyer would.

The deal improves the visibility of the project's revenues, a key factor in persuading banks to finance construction. However, it does not mean the plant is already financed or under construction. AXIAN said Kudu was now moving towards financial close, with support from Standard Bank Group and Stanbic Bank Zambia.

Diversifying buyers aims to reduce the risk often associated with African power projects, where all output depends on a single state-owned utility. GreenCo will be able to spread sales across several countries and customer categories, subject to grid capacity and the rules governing access to cross-border lines.

For mining groups in Zambia and neighbouring countries, additional solar volumes could help secure part of their supply and diversify their contracts. However, solar output varies during the day and must be complemented by dispatchable capacity, storage or regional trade to meet demand around the clock.

The project would be located in Kafue district, in Lusaka Province. AXIAN is already present in the country through the acquisition of an 85.6% stake in the Bangweulu solar plant, which has an installed capacity of 54.3 megawatts-peak.

Zambia has accelerated solar announcements and commissionings in 2026. Several industrial plants have begun producing, and projects combining solar panels and batteries are being prepared. This momentum responds to the needs of the mining sector and to the vulnerabilities of a power system heavily exposed to fluctuations in hydropower output.

Kudu must still clear the financing, construction and grid connection stages before delivering its 530 gigawatt-hours a year. The signed contract sets a commercial outlet, but does not guarantee a commissioning date.