ZESCO Signs Power Purchase Agreements with IPPs to Boost Solar Capacity
ZESCO, Zambia’s state-owned electricity company, has signed Power Purchase Agreements (PPAs) with 28 Independent Power Producers (IPPs) under the Micro-Generator Scheme and the Presidential Solar Initiative. The agreements will add 270 megawatts (MW) of solar power to the national grid.
At the signing ceremony, Energy Minister Hon. Makozo Chikote emphasized the government’s commitment to development, stating, “Under President Hakainde Hichilema’s leadership, we are delivering development, not just talking about it.
This initiative will power industries, create jobs, and drive economic growth, showing that the UPND government is serious about transforming Zambia.”
ZESCO Managing Director Justin Loongo praised President Hichilema’s focus on renewable energy, noting that the 270MW from micro-generation projects would improve grid stability and ensure reliable power for all Zambians.
The Presidential Solar Initiative will contribute an additional 62MW through government-backed solar installations, set to begin construction within two months, with delivery expected within three to eight months.
To further promote solar energy, President Hichilema has introduced zero-rated VAT on solar products, duty-free importation of machinery, and tax exemptions in rural areas. These measures have been widely praised by the private sector.
“Today’s Zambia is open for business, thanks to President Hichilema’s pro-investment policies,” said Ms. Phiri, Chief Productivity Measurement Officer at the Ministry of Labour, on the reduced rates.
With over 320MW of solar capacity projected by 2026, these initiatives are critical to reducing Zambia’s reliance on hydropower. Additionally, the government has reduced power exports from 520MW to 150MW to address power shortages and minimize load shedding.
