Economy

ZESCO says 29 power purchase agreements signed to diversify Zambia’s electricity generation mix

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ZESCO Limited has reportedly signed power purchase agreements (PPAs) with 29 Independent Power Producers (IPPs) to diversify the country’s electricity generation mix and achieve sustainable energy security.

The agreements are set to generate 332 megawatts (MW) of electricity from solar power.

The IPPs involved in the agreements, signed on Tuesday, fall under three categories: the Presidential Solar Initiative, Micro-Generator Scheme, and Developer-Initiated Programme.

These initiatives are key to the country’s energy development and security goals.

At the signing ceremony in Lusaka on Tuesday at ZESCO headquarters, Energy Minister, Makozo Chikote, reportedly emphasized that these initiatives represented not just contracts, but a transformative step toward energy self-sufficiency, electricity security, and economic growth for Zambia.

Chikote stated that the government was committed to ensuring every household, business, and industry had access to reliable, affordable, and sustainable electricity.

“The Micro-Generator Scheme, being formalized today, is a critical component of this vision. With 29 IPPs contributing a combined capacity of about 270 MWpeak, this initiative integrates small-scale solar power projects ranging from 100 kilowatts to five MW into the national grid,” Chikote said.

“These projects will play a vital role in diversifying our energy mix, improving access to electricity, reducing reliance on hydropower, and strengthening grid stability,” he added.

ZESCO Managing Director, Justine Loongo, also reported that construction was expected to begin within the next two months, with project commissioning anticipated before the end of this year.

“Through this initiative, we are simplifying the approval process for developers under the Electricity Act of 2019 and the Zambia Power Development Framework. We are providing a structured, transparent pathway for IPPs to participate in the electricity market,” Loongo said.

The Micro Generation Power Plant developers include the University of Zambia, Techmasters Zambia, Big Vision Investments, Tondent Limited, Laato Energy Solution, Budge Zambia Limited, China Jiangsu International Limited, and Abena Consultants Limited.

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