HARARE: Zambia will become a regional exporter of electricity once the development of new sources such as the 600 megawatts (MW) solar photo voltaic power plants are commissioned, Deputy Minister of Commerce, Trade and Industry Raymond Mpundu has said.
Speaking yesterday at the Zambia scaling solar bidders’ conference, Mr Mpundu said Government has prioritised energy diversification with solar power being a key priority. He said the Industrial Development Corporation (IDC) and the World Bank have started the development of two solar power plants of 50
MW each for an initial total of 100MW out of the targeted 600MW that will cost US$1.2 billion. “The key advantage of the programme is that it procures solar power from the private sector at the lowest possible cost in tariff terms.
“In addition, the development of new electricity sources will contribute to increasing our country’s export base, while creating employment during project construction, operation and maintenance of 600MW solar power plants,” Mr Mpundu said.
He said Government will not be required to support the procurement and development of a large-scale solar power into Zesco through provision of a sovereign guarantee since the World Bank has already confirmed its support for the initial 300MW one through a partial risk guarantee facility (PRG).
“This is the first time the PRG facility is being used in Zambia. Government through IDC will continue to play a catalytic role by co-investing with the private sector in either existing or new business ventures that contribute to Zambia’s economic development,” Mr Mpundu said. Round one of the scaling solar programme has attracted the interest and participation of all major players and leading solar energy companies in the world.
The winning bidders will be responsible for the financing, construction, operation and maintenance of their respective plants under 25-year power purchase agreements. The IDC will own a minimum of 20 percent shareholding in each project
