Enel sings 25-year PPA with Zambian national utility ZESCO

Enel, acting through its Renewable Energies Division Enel Green Power (EGP), has signed a 25-year power purchase agreement with Zambia’s state-owned utility ZESCO for the 34 MW Ngonye1 PV solar project won in June following the first round tender of the Scaling Solar programme, which was launched by state-owned investment holding company Industrial Development Corporation Limited (“IDC”). Ngonye is located in the Lusaka South Multi-Facility Economic Zone in southern Zambia, and the awarding of the capacity to Enel marked the Group’s entry into Zambia’s renewable energy market.

Enel will be investing approximately 40 million US dollars in the construction of the new PV plant, which is expected to generate around 70 GWh per year. Ngonye will be owned by a special purpose vehicle in which EGP will hold 80% and IDC will have a 20% minority stake.

The country also aims to increase the security of supply, improving service quality and encouraging the electrification of rural areas. Zambia’s President, His Excellence Edgar Chagwa Lungu launched a set of initiatives to promote the development of renewables generation capacity, focusing in particular on solar PV, with the goal of installing up to 600 MW within the next two to three years.

The first round of the Scaling Solar programme was part of these initiatives and provided for the development of two PV projects with a total capacity of up to 100 MW. IDC structured the tender according to the Scaling Solar initiative developed by the World Bank, with the International Finance Corporation (IFC) acting as advisor.