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The construction of the 120 Megawatts (MW) Solar PV GET FiT Programme in Zambia is estimated to start next year, as lenders are working towards financial close at the end of 2024.
The GET FiT Programme is being executed by the Ministry of Energy and implemented by the German development bank KfW while funding is being provided by the German government.
In addition, a multitude of Zambian stakeholders is involved, such as the Energy Regulation Board and ZESCO.
Other cooperating international organisations include the African Development Bank, and Africa Trade Insurance.
An update provided at the Energy Forum for Africa in Lusaka last week by Dailesi Njobvu, a policy advisor, showed that estimated construction of the project would start in 2025 and completion in 2025/2026.
In her presentation, Njobvu said there were efforts towards signing project agreements.
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“By end of July 2024 successful bidders mandated lenders to commence due diligence process. Lenders are also working towards financial close at the end of 2024,” she said.
On implementation delays, Njobvu said projects could not achieve financial close.
She explained that lenders suspended funding due to macro-economic challenges and Zambia’s debt default, financial sustainability challenges in the sector, including the ZESCO arrears to the Independent Power Producers.
Njobvu pointed out that developers, however, remained committed to implementing projects, saying GET FiT Secretariat, Ministry of Energy and KfW continued with the engagement in onboarding potential lenders. She said lenders’ concerns were addressed.
Njobvu noted that competitive tendering was still best for ensuring a low tariff outcome and that bankability was crucial for ensuring successful project implementation.
“The momentum is required to ensure continuity of developing more projects to meet future energy demands and the electricity deficit demonstrates the need for an increase in the diversification of energy sources.
“To achieve energy sufficiency, ZESCO needs financially sustainable projects to come online as soon as possible. GET FiT helps achieve this objective,” she said.
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