Funding For 100 MW RE Projects In Zambia

100 MW Renewable Power Project Capacity In Zambia To Receive $52.5mn In Financial Support From Green Climate Fund
05:56 PM (Beijing Time) - 09. March 2018
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The 100 MW project in Zambia marks the first time GCF and AfDB will be co-financing such a program. Last year, GCF approved AfDB as a credited implementer of GCF-approved projects and signed an Accreditation Master Agreement to this effect. (Photo Credit: African Development Bank)

Key Takeaways

  • The African Development Bank (AfDB) will receive a $50 million loan and $2.5 million grant to support 100 MW of renewable energy projects from the Green Climate Fund (GCF)
  • It will be developed under the Renewable Energy Feed-in-Tariff (REFiT) policy launched in Zambia in 2017
  • The projects will help the country to reduce its dependence on hydropower and diversify its power mix
  • Around 300,000 people will benefit once the 100 MW capacity comes on line

The Green Climate Fund (GCF) has approved a $50 million loan and $2.5 million grant to support 100 MW of renewable capacity, primarily solar, in Zambia. The funding will be disbursed via the African Development Bank (AfDB) for Zambia’s Renewable Energy Financing Framework.

The 100 MW project capacity will be developed as part of the country’s Renewable Energy Feed-in-Tariff (REFiT) policy launched in 2017. Through this policy, the government aims to attract private investment for small-scale renewable projects up to 20 MW.

No other details of the project were available except that it will provide sustainable energy to around 300,000 people, according to AfDB’s Vice President for Power, Energy, Climate and Green Growth Amandou Hott. It will reduce the country’s dependence on hydropower and provide some relief from the electricity supply deficit created by recent droughts.

Earlier this year, the Zambian Ministry of Energy and the German Development Bank (KfW) held a pre-bid meeting for a proposed PV tender for 100 MW of capacity. The tender will be part of the GET FiT Zambia program, which is the official implementation program of the REFiT strategy (see Zambia To Launch 100 MW PV Tender).

It is the first time AfDB and the GCF will co-finance such a program after the 2 agencies signed a Accreditation Master Agreement on Nov. 8, 2017. By signing the agreement, GCF officially approved AfDB as a credited implementer of GCF-approved projects.   

 

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani