Standard Bank Loan Triggers Phase Two at Zambia's 118 MWp Mailo Solar Plant After Grid-Trading Milestone

Solarcentury Africa has moved into the second construction phase of its Mailo Solar Power Plant in Zambia, backed by a USD 40 million loan from Standard Bank South Africa and following a landmark first: the completed initial phase is now trading electricity on the Southern Africa Power Pool as what the company describes as the first dedicated merchant solar project ever to do so on the regional platform.

Financing That Opens a Wider Door

The USD 40 million Standard Bank South Africa loan that unlocked Phase Two construction is described by Solarcentury Africa as the first phase of a larger financing facility intended to fund the rollout of its merchant power fleet across the Southern African Development Community, known as SADC.

The company is owned by BB Energy, an independent energy trading company founded in the 1960s that also served as the funding source for Phase One. BB Energy employs over 500 people and operates trading hubs in London, Dubai, Houston, and Singapore.

The phased expansion plan sees the Mailo plant grow from its current 25 MWp peak installed capacity to 60 MWp upon completion of Phase Two, with a further third phase planned to bring the total to the plant's full design capacity of 118 MWp.

What the First Phase Achieved

The plant sits on 204 hectares of land within the Mailo Chiefdom near Kanona village in Zambia's Chitambo district. It was previously known as the Serenje Solar Plant before being renamed. Solarcentury Africa said it developed, funded, and built the first 25 MWp phase in less than twelve months, a timeline it described as a record.

Construction was carried out by Alensy Energy Solutions of Namibia. At 25 MWp, the plant is projected to generate over 60 gigawatt-hours of electricity annually, which Solarcentury Africa says is enough to power approximately 25,000 homes based on average household consumption levels in Zambia.

The project is also expected to offset around 60,000 tonnes of carbon dioxide each year, with a cumulative offset of more than two million tonnes over its lifetime, a figure the company equates to removing nearly 20,000 cars from Zambian roads. More than 400 local jobs were generated during the construction and operations phases of Phase One.

Trading on SAPP Without Government Guarantees

The commercial model underpinning Mailo sets it apart from the financing structures that have historically dominated renewable energy development in sub-Saharan Africa. The project operates without long-term power purchase agreements with private offtakers or national utilities and without sovereign guarantees from governments. Solarcentury Africa is itself a Market Participant in SAPP, and the plant sells power to large industrial customers and traders in Zambia or directly through the power pool platform.

SAPP Coordination Centre Executive Director Eng Stephen Dihwa described the development as a historic milestone for the organization. The significance stretches beyond Zambia, with the project representing a new approach for bringing solar energy to market across the SADC region under a merchant framework.

Zambia's Push to Reduce Hydro Dependence

The Mailo project fits within the Zambian government's stated plans to trigger what has been characterized as a solar explosion in the country's energy mix. Zambia has historically leaned heavily on hydroelectric power generation, and the Mailo plant is positioned as part of the broader national effort to reduce that dependence and strengthen energy resilience. Solarcentury Africa CEO Jason De Carteret said the project demonstrated what could be achieved through strategic partnerships and a shared commitment to sustainable development.

He stated that delivering clean, reliable power to Zambia's grid at what he described as a critical time supports both energy security and the groundwork for long-term climate resilience and economic growth in the region. Solarcentury Africa also confirmed that an agreement is in place with the local community in the Mailo Chiefdom to ensure it benefits financially from the plant's ongoing operations.

Five Hundred Megawatts Targeted Across SADC by 2030

Mailo is one piece of a larger merchant solar portfolio that Solarcentury Africa is assembling across the SADC region. The company has stated a target of more than 500 megawatts of merchant solar capacity by 2030, framed as a response to what it characterises as a sizeable energy gap across the region.

Solarcentury Africa is headquartered in the United Kingdom and describes itself as having over a decade of experience delivering solar photovoltaic and energy storage projects across Africa. The company said it welcomes approaches from other industry participants and stakeholders interested in expanding its portfolio of plants and customers across the region.