The Ngwenya Solar Project has secured a $30 million loan, led by the Emerging Africa Infrastructure Fund (EAIF), for a 100 MWp solar power plant in Zambia. Located 40 km west of Lusaka, the project is poised to play a crucial role in addressing the country’s power shortages and advancing its renewable energy agenda.
Zambia’s Largest Solar Project Secures Major Financing
The Ngwenya Solar Project has reached a major milestone, securing a $30 million loan from the Emerging Africa Infrastructure Fund (EAIF), part of the Private Infrastructure Development Group (PIDG). This funding will support the development of a 100 MWp solar power plant, marking a significant step forward in Zambia’s renewable energy efforts. The project is being developed by a consortium led by Globeleq, a leading investor and operator in the African power sector.
Located approximately 40 kilometers west of Lusaka, the Zambian capital, the Ngwenya Solar Project is set to become the largest solar power plant in the country. It will provide clean and reliable electricity to the national grid. This initiative aligns with Zambia’s goal of reducing its dependence on hydroelectric power, which currently makes up the majority of the nation’s energy supply.
Financial Backing and Support for the Ngwenya Project
The EAIF’s $30 million loan is a critical component of the project’s financing, which is estimated to cost $100 million in total. This loan is part of a larger financial package that also includes funding from the International Finance Corporation (IFC), a member of the World Bank Group, and the Industrial Development Corporation of South Africa (IDC).
In addition to these loans, the Ngwenya Solar Project has received support from the Global Energy Transfer Feed-in Tariffs (GET FiT) program, managed by the German development bank, KfW. This program provides financial incentives for renewable energy projects in Zambia, helping to make them more economically viable.
The project also benefits from a long-term power purchase agreement (PPA) with ZESCO, Zambia’s state-owned electricity utility. Under the PPA, ZESCO will purchase all electricity from the Ngwenya Solar Plant at a fixed price for 25 years. This agreement provides crucial financial stability for the project and ensures its generated electricity will be fully utilized.
Construction Timeline and National Impact
Construction on the Ngwenya Solar Plant is set to begin later this year, with the project scheduled for completion by 2025. Once operational, the plant will generate enough clean electricity to power approximately 40,000 homes.
The project will also help reduce the country’s reliance on hydroelectric power, a sector that has been affected by droughts in recent years. By diversifying Zambia’s energy mix, the plant will make the country’s electricity supply more resilient to climate change.
The Ngwenya Solar Project is poised to have a positive impact on Zambia’s economy. It will create jobs during the construction phase and offer ongoing employment opportunities once the plant is operational. The project will also help diversify Zambia’s energy mix, making the country’s electricity supply more resilient to climate change.
Beyond its economic benefits, the project will contribute to Zambia’s efforts to reduce greenhouse gas emissions. By replacing fossil fuel-based power with clean solar energy, the Ngwenya Solar Plant will help lower the country’s carbon footprint.
Advancing Zambia’s Renewable Energy Agenda
The Ngwenya Solar Project is a significant milestone for Zambia’s renewable energy sector, demonstrating solar power’s potential to address the country’s energy challenges and support its economic development.
The project also highlights the importance of international collaboration in financing and developing renewable energy in Africa. By bringing together financial institutions, development agencies, and private sector partners, the Ngwenya Solar Project is helping to pave the way for more renewable energy initiatives in Zambia and across the continent.
The success of the Ngwenya Solar Project could serve as a model for other countries in the region looking to expand their renewable energy capacity. With the right support and financing, solar power can play a crucial role in meeting Africa’s growing energy needs while reducing its reliance on fossil fuels.
