Zambia: ZESCO signs $519 million agreement for 500 MW solar project
The Zambian public utility and EnerSynk have finalized a 25-year power purchase agreement for a photovoltaic project in the Copperbelt. The first phase of 300 MW is targeted for completion within 16 months of the agreement's effective date.
Zambian public utility ZESCO and Hungarian group EnerSynk signed a 25-year power purchase agreement on September 15 in Lusaka for a 500 MW solar project in the Copperbelt province, valued at $519 million.
The project will be rolled out in three phases. The first 300 MW is targeted for completion within 16 months of the agreement’s effective date, followed by an additional 100 MW within 22 months, and the final 100 MW within 28 months.
ZESCO and EnerSynk have committed to meet the prerequisites within 12 months to secure financing and commence construction. The project is also expected to create opportunities for local employment, subcontracting, and the procurement of goods and services in Zambia.
Additionally, the Zambian company plans to allocate 50% of the environmental credits generated by the project to a community fund jointly managed with EnerSynk. This mechanism is intended to finance economic and social initiatives in the communities hosting the facilities.
The agreement comes as Zambia seeks to diversify its electricity production, which remains heavily reliant on hydropower, a sector vulnerable to drought episodes. Authorities aim for approximately 10,000 MW of installed national capacity over the next five years.
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