Zambia's 100 MW Solar Project Secures $71.5 Million in Financing

Strategic Insights -

A milestone has been achieved in Zambia's renewable energy sector as the 100 MW Chisamba solar PV project secured $71.5 million in financing from Stanbic Bank Zambia. This project, developed by Kariba North Bank Extension Power Corporation (KNBEPC), a subsidiary of Zambian national power utility Zesco, aims to provide critical industrial operations with blended renewable power under a power supply agreement with First Quantum Minerals (FQM). The energy will be transmitted through Zesco's transmission backbone and will supplement the volume of energy available to meet Zambia's commercial and residential needs.

Key Takeaways:

  • The 100 MW Chisamba solar PV project in Zambia has secured $71.5 million in financing from Stanbic Bank Zambia.
  • The project is developed by Kariba North Bank Extension Power Corporation (KNBEPC), a subsidiary of Zambian national power utility Zesco.
  • The energy generated by the solar plant will be transmitted through Zesco's transmission backbone and will supplement the volume of energy available to meet Zambia's commercial and residential needs.
  • The project will provide critical industrial operations with blended renewable power under a power supply agreement with First Quantum Minerals (FQM).
  • Power China is the engineering, procurement and construction contractor for the project and has started construction ahead of financial close.
  • The transaction delivers direct value to the public sector by enabling 100 MW of new capacity to be added to the grid without Zesco assuming any financial obligations.
  • Zesco also receives improved transmission revenues through the use-of-system agreement with GreenCo, and benefits from stronger grid stability.
  • The project contributes to a more climate-resilient, diversified energy mix, aligned with Zambia's Integrated Resource Plan and international climate goals.
  • GreenCo's ability to absorb price volatility and offer liquidity support made the transaction bankable under a short, efficient debt structure, it says.

Statistics:

  • $71.5 million - The amount of financing secured by the 100 MW Chisamba solar PV project from Stanbic Bank Zambia.
  • 100 MW - The capacity of the solar PV project.
  • 13 years - The duration of the power purchase agreement between GreenCo Power Services and First Quantum Minerals (FQM).
  • 2022 - The expected year of commercial operation for the project.

Sources:

  • Global Data Point, "Zambia's 100 MW Solar Project Secures $71.5 Million in Financing" (2022).
  • SyndiGate Media Inc., "Zambia's 100 MW Solar Project Secures $71.5 Million in Financing" ().
  • Power China.
  • Zesco.