Zambia Signs Landmark Power Agreements with 29 IPPs

ZESCO Limited has signed 29 Power Purchase Agreements (PPAs) with Independent Power Producers (IPPs) to enhance Zambia’s energy security and sustainability. The agreements, signed at the Mulungushi International Conference Centre, represent a significant milestone in diversifying the country’s electricity sector and expanding renewable energy generation.

Key Initiatives

These agreements fall under three major initiatives aimed at increasing Zambia’s power generation capacity:

• Presidential Solar Initiative – 62MW of solar PV installations at government institutions to ensure reliable power supply and reduce dependence on hydroelectricity.
• Micro-Generator Scheme – Incorporating small-scale renewable projects ranging from 100kW to 5MW, with a total capacity of 270MWp.
• Developer-Initiated Projects – Various privately funded renewable energy projects contributing to a cleaner and more resilient electricity sector.

The addition of over 320MW of solar power is expected to significantly benefit households, businesses, and industries, particularly in rural and underserved areas. These projects will create hundreds of direct and indirect jobs in engineering, construction, and maintenance, further stimulating economic growth. Additionally, by integrating more renewable energy sources, Zambia will reduce its reliance on hydropower, ensuring a more stable electricity supply during periods of drought.

The Zambian government has been proactive in supporting renewable energy investments by streamlining regulatory processes under the Electricity Act of 2019 and the Zambia Power Development Framework. This approach aims to attract both local and international investors, fostering a competitive and dynamic energy market.

The initiative aligns with President Hakainde Hichilema’s commitment to increasing renewable electricity access across Zambia. During the COP28 Conference in Dubai, the President reaffirmed the country’s ambition to develop mini-grids and attract private investment in the energy sector. The signing of these PPAs is a direct response to that commitment, ensuring Zambia moves towards a more sustainable and self-reliant energy future.

With the agreements in place, the focus now shifts to implementation. Developers will undergo environmental, social, and technical assessments before beginning construction. The first projects are expected to break ground in the coming months, with initial power generation anticipated by late 2025. All 56 projects under this initiative are projected to be fully operational between the fourth quarter of 2025 and the first quarter of 2026.

ZESCO will work closely with the developers to ensure seamless integration into the national grid, providing technical support and ensuring compliance with national electricity standards. The company also encourages further private sector participation, as Zambia continues to explore opportunities in solar, wind, and hydroelectric power generation.

The signing of these 29 PPAs is a defining moment in Zambia’s energy transition. It marks significant progress in diversifying electricity sources, enhancing private sector involvement, and ensuring more reliable power for all Zambians. With strong government backing and private sector commitment, these projects will play a crucial role in Zambia’s journey towards energy security and economic development.

ZESCO remains committed to supporting independent power producers and scaling up renewable energy initiatives, ensuring universal electricity access for future generations.