The government of Zambia last month signed a second mandate with Scaling Solar, an initiative of the World Bank Group, which is helping developing countries procure low-cost, privately financed solar power.
Electricity distribution is at a critical level in Zambia, with only about one-fifth of the population having access to electricity and the country often being subjected to load-shedding or blackouts for up to ten hours a day.
The new mandate builds on Zambia’s engagement with Scaling Solar, following the successful auctions that were held in May 2016 for two solar photovoltaic plants of up to 50 MW each, which attracted some of the world’s top renewable-energy developers – similar to the way in which the South African Department of Energy developed its renewable-energy independent power producer programme.
The two successful bidders and relevant Zambian government agencies are concluding the agreements, which are expected to be finalised in May this year.
The World Bank Group’s board approved a package of financing and guarantees for one of the bidders and will review similar packages for the another bidder in the coming weeks.
The latest Scaling Solar mandate will begin soon with an initial procurement round of up to 200 MW of utility-scale renewable energy, with subsequent rounds to develop 500 MW of renewable power. The request for qualifications for the second round is expected to be released later this month.
The mandate will be led by the Industrial Development Corporation of Zambia (IDC Zambia), in close coordination with the country’s Ministry of Energy, and is expected to comprise the structuring and tendering of up to four solar plant projects of between 50 MW and 100 MW each. Each plant will be developed by different private-sector sponsors through the open and competitive bidding process.
IDC Zambia acting CEO Mateyo Kaluba says completing a first solar project public–private partnership in the 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.”
World Bank Group International Finance Corporation Eastern and Southern Africa director Oumar Seydi says the partnership between Scaling Solar and IDC Zambia is successfully delivering the affordable renewable energy needed to ease the country’s ongoing energy crisis. “Access to electricity is vital for achieving development goals. “In Zambia, Scaling Solar has helped create a market that will make it easier for the public and private sectors to work together to meet the country’s energy needs and expand opportunities for families and businesses.”
The two rounds in Zambia that have already been held, along with Scaling Solar projects currently in progress in Senegal, Madagascar and Ethiopia, will, combined, develop and tender more than 1.2 GW of solar power, bringing much-needed generation capacity to countries struggling to meet their energy needs.
The programme is also expanding to other regions, with countries in Asia and the Middle East in discussions to join Scaling Solar.