ZESCO signs 25-year PPA for 500MW solar project in Zambia
EnerSynk plans major solar expansion to strengthen Zambia’s power supply
ZESCO Limited has signed a 25-year Power Purchase Agreement (PPA) with Hungary-based climate infrastructure company EnerSynk Group for a 500MW solar photovoltaic project in Zambia’s Copperbelt Province.
The project, valued at approximately US$519 million, is expected to add significant renewable generation capacity to Zambia’s national grid and support efforts to diversify the country’s electricity mix.
The development will be implemented in three phases. The first phase, comprising 300MW, is targeted for commercial operation within 16 months of the agreement’s effective date.
A further 100MW is expected within 22 months, followed by the final 100MW within 28 months.
Project moves towards implementation
The PPA provides the commercial framework for EnerSynk to sell electricity generated by the project to ZESCO over 25 years.
Following the agreement, the project will progress through technical studies, environmental and regulatory assessments, financing and implementation planning.
The project had previously received regulatory and legal approvals, allowing it to advance towards a bankable feasibility study, grid impact assessment, environmental and social assessments and financial close.
EnerSynk said the project will be developed in phases to allow construction and financing activities to be structured around the overall implementation programme.
Boosting Zambia’s power supply
The 500MW project comes as Zambia seeks to expand generation capacity and reduce its vulnerability to fluctuations in hydropower output.
The country has been increasing investment in solar power as it works to diversify its energy mix and meet growing electricity demand from sectors including mining, manufacturing and agriculture.
The project is also aligned with Zambia’s broader plans to increase electricity generation capacity and support its copper production ambitions.
Once completed, the EnerSynk development is expected to become one of Zambia’s major utility-scale solar projects, adding renewable electricity to the national grid while supporting the country’s long-term energy security objectives.
