Zambia’s Ilute Solar Financing Advances

Tuesday 6th January 2026

By inAfrika Newsroom

Ilute Solar Project financing is drawing attention again as Zambia works to add dependable generation while limiting fuel exposure.

The Ilute Solar Project, planned at 32 MWp in Western Province, has attracted support from development finance partners. The African Development Bank said its Sustainable Energy Fund for Africa backed a broader financing package for the project, as part of efforts to move stalled independent power projects toward construction.

Developers see Ilute as a test case for how concessional funding can bridge viability gaps. Therefore, they structure deals to reduce early-stage risk, and then crowd in commercial lenders. That model matters in Zambia because currency swings and procurement delays have challenged IPP delivery.

Solar also fits Zambia’s push to diversify supply. Hydropower dominates the mix, yet dry spells can tighten generation. Meanwhile, solar can scale faster than large thermal projects, and it cuts exposure to imported fuels. However, it still needs grid upgrades and firming solutions, so transmission planning remains a key bottleneck.

Project backers also link Ilute to wider reforms under Zambia’s renewable procurement programmes. As a result, investors now ask two practical questions: can the offtaker pay on time, and can the grid absorb new power without curtailment?

On jobs, developers expect local contracting during civil works and electrical installation. In addition, procurement often supports local transport, security, and site services. Yet long-term benefits depend on stable dispatch and predictable tariffs, not just construction activity.

Next steps — Ilute Solar Project financing

Financiers will focus on final project documents and any remaining conditions before full construction ramps up. Meanwhile, grid readiness work will matter, including substation and evacuation planning. If timelines hold, Ilute can help rebuild market confidence for other revived IPPs.

Why it matters

Zambia needs new power fast. Bankable solar projects can also lower system costs over time and support mining, farming value chains, and urban services.