- Zambia will be developing 500 MW of solar power capacity as part of its second engagement with Scaling Solar initiative of the International Finance Corporation (IFC)
- Initial procurement round to aim for 200 MW of utility scale clean energy; subsequent rounds will take the total capacity to 500 MW
Request for qualification for the second round expected in late March 2017
- Industrial Development Corporation (IDC) of Zambia will lead the second round of Scaling Solar in the country, in close coordination with the Ministry of Energy
- IDC will structure and tender up to 4 solar power projects of 50 to 100 MW each
Zambia has signed agreements with the International Finance Corporation (IFC) to engage with Scaling Solar, the second time around. This time, Zambia will be looking at developing 500 MW of solar power under the aegis of the IFC initiative, part of the World Bank Group.
Last year, Zambia held successful auctions for two solar PV plants of up to 50 MW capacity each (see Zambia IFC Projects). One was awarded for a total tariff of $6.02 cents per kWh to First Solar and NEOEN S.A.S., the other to Enel SA for $7.84 cents per kWh. At present, all these companies are in the process of concluding their agreements, to be finalized in May 2017. The World Bank Group’s Board has approved a package of financing and guarantees for one of the two winning bidders. For the second winner, it will review the same in the coming weeks.
For its second engagement under Scaling Solar, Zambia will begin with an initial procurement round of up to 200 MW of utility scale clean energy. In subsequent rounds, it will follow with a goal of developing 500 MW of renewable power. Requests for qualifications for the second round are expected to be released in late March 2017, according to IFC.
This round of Scaling Solar will be led by the Industrial Development Corporation (IDC) of Zambia with the Ministry of Energy in close coordination. The agency will structure and tender up to four solar plant projects of 50 MW to 100 MW each.
“Completing a first solar public-private partnership in a country is a massive undertaking. The package of bankable documents, transaction structuring advice, and research that Scaling Solar provided saved us considerable time, attracted more competitors, and ensured a successful process. The biggest
benefit has been having the Scaling Solar team every step of the way to keep the process moving forward,” said Mateyo C. Kaluba, acting CEO Of IDC Zambia.
Scaling Solar is an initiative from the World Bank Group that helps governments quickly procure and develop large scale solar projects with private financing. It currently has projects under progress in Senegal, Madagascar, Ethiopia and Zambia. The Bank is looking at expanding to other countries in Asia and Middle East.
The Zambia projects will be developed by different private sector sponsors through an open and competitive bidding process.