“This is a landmark award for EGP, underlining the consistent development of a gradually and well planned expansion in selected areas of the African continent where the company can play a key role in providing smart, efficient and sustainable energy solutions. Our entry into Zambia — a country offering a very attractive investment proposition — is another step forward in this respect and we are proud to contribute to the Scaling Solar programme, one of the best-designed schemes for renewables in Africa”
Enel will be investing approximately 40 million US dollars in the construction of the new PV plant, as part of the investment programme indicated by the company’s current strategic plan. The project will be supported by a 25 year-long power purchase agreement (PPA) for the sale of all the energy generated by the plant to the state-owned utility ZESCO. The project, which will be owned by a special purpose vehicle (SPV) in which IDC will maintain a 20% minority stake in line with tender’s regulation, is expected to enter into operation in the second quarter of 2017 and will generate around 70 GWh per year.
Zambia is characterised by a strong growth in electricity consumption (with an average of around 5-6% per year) and the need to diversify its energy generation mix which is dominated by hydro. The country also aims to increase the security of supply, improving service quality and encouraging the electrification of rural areas. In this context, Zambia’s government has launched a set of initiatives to promote the development of generation capacity from renewable sources, focusing in particular on photovoltaic power, with the goal of installing up to 600 MW within the next two to three years. Round 1 of the Scaling Solar programme carried out by IDC is part of these initiatives and provides for the development of two PV projects with a total capacity of up to 100 MW; IDC has structured the tender according to the Scaling Solar initiative developed by the World Bank, with the International Finance Corporation (IFC) acting as advisor.