Zambia Electricity and Westland Power Sign Power Purchase Agreement
Zambia electricity supply (ZESCO)ESCO Limited has signed a Power Purchase Agreement (PPA) with ACSG Westland Power Company Limited, which will see the latter invest in solar thermal projects across the country.
The agreement was signed on 18 July 2023 at a ceremony held at ZESCO Head Office in Lusaka and officiated by the Minister of Energy, Hon. Eng. Peter Chibwe Kapala.
ZESCO Managing Director, Eng. Victor Mapani said Zambia’s electricity supply industry needs to be demonopolized to allow many players on the market contribute towards meeting the current power supply demand the country is facing.
“The Zambian energy sector and specifically its electricity supply industry requires demonopolization. It is currently monopolized, which simply means steadily removing the exclusive responsibility placed on ZESCO Limited to meet the country’s power supply needs by having as many players as possible on the market. This will entail us encouraging more investors to invest in the power sector.”
Eng. Mapani expects ACSG Westland Power Company Limited’s decision to invest in solar thermal power projects with an expected net capacity of 500MW+10 to tangibly contribute towards accelerating Zambia’s electricity supply industry on two fronts.
“Firstly, this development will increase power generating capacity and help diversify the energy mix which presently has hydro sitting at 86 percent in Zambia; a risk by itself.
We are further excited to note that this agreement guarantees us an initial investment and commissioning of 10MW solar thermal plant hopefully to be placed in Shangombo area and thereafter 500MW to come through.
“ZESCO Limited therefore wishes to thank ACSG Westland Power Company Limited for deciding to invest in solar thermal power projects with an expected net capacity of 500MW +10”MW” he said.
Meanwhile, AWPC Westland Power Company Limited Executive Chairman, Chief Obi Amuchienwa said the consortium has been lured to invest into solar thermal power projects due to the visionary leadership exhibited by the country’s President, Mr Hakainde Hichilema.
“I am incredibly happy that after several engagements, we have reached a point of fruition. We were all encouraged by Zambia’s framework for power development which went through serious consultative sessions.
However, you must admire the synergies right from the President’s vision to the vision of the Minister of Energy, and the vision of the heads of parastatals. They all speak with one voice and that they all want to get things done.
“It is based on the reactions we got here. The professionalism, vision, drive, transparency, honest and the clear focus for the power agenda for Zambia which made us agree amongst ourselves that Zambia can be a regional hub to be able to launch this solar thermal technology, which is both clean, sustainable and something that can be driven, achieved within a short space of time.”
And Energy Minister, Eng. Peter Chibwe Kapala said the signing of a Power Purchase agreement between ZESCO and ACSG Westland Power Company Limited was enabled by the stable and predictable business environment for local and foreign investors created by the Zambian government.
Hon. Kapala r encouraged ZESCO’s Board and Corporate Leadership Team to ensure that all Power Purchase Agreements consented to by the national power utility were cost efficient and did not put ZESCO in perpetual debt that was an impediment to its sustained growth.
“While the government has remained supportive of ZESCO’s expansion plans as contained in its 10-year strategic plan, it shall maintain an arm’s length distance in its operations.
However, this is with an expectation that the Board and Corporate Leadership Team is making progressive and sound commercial decisions.”
