Solarcentury Africa to develop 67 MW solar project in Zambia

From the newsletter

South African finance firm, the Industrial Development Corporation (IDC), has signed a Heads of Terms agreement with Solarcentury Africa to co-develop a 67 MWp solar project in Zambia. By wheeling power to IDC’s large industrial users in Zambia, the plant will help alleviate the country’s recent power shortages.

• The IDC has already secured the project site and completed preliminary technical studies, while Solarcentury Africa will oversee the plant's development, design, financing, and construction.

• Over 80% of Zambia’s electricity is generated from hydropower, leaving the country highly susceptible to droughts. The new solar plant will diversify the energy mix by introducing solar power, reducing reliance on hydropower, and addressing persistent energy deficits.

More details

• Zambia’s energy woes have forced it to pursue several solutions. In the last month, it pursued two energy deals. It was granted $292 million for the Zambia-Tanzania Interconnector Project (ZTIP), aimed at mitigating power losses during droughts, following severe shortages that affected the country in 2024.

• This was followed by the $8 million implementation agreement between Serengeti Energy and Western Solar Power for the 25 MW Ilute solar project, which is set to begin construction early this year after reaching financial close.

• Zambia holds significant potential for renewable energy, particularly solar, with an estimated capacity of 2,300 MW. However, only around 76 MW of solar power has been installed to date.

• These figures underscore Zambia's significant untapped potential for renewable energy, especially in solar and wind power. While hydropower currently leads the energy mix, diversifying into other renewables is essential for enhancing energy security, improving electricity access, and fostering sustainable development.

• Only about 31% of the Zambian population has access to electricity, with a significant disparity between urban (67%) and rural areas (14.5%). 2024’s unprecedented drought cost the country approximately $1.3 billion, roughly 5% of its GDP.

• In the partnership with IDC, Solarcentury Africa brings valuable expertise, having developed the first 25 MW phase of the 100 MW solar project in Kanona, Serenje District. Construction began last year, and the project is expected to be commissioned by Q2 2025.

• As a member of the Southern Africa Power Pool (SAPP), Solarcentury Africa is actively expanding its merchant solar portfolio in Namibia, Botswana, and Zambia, with plans to install up to 500 MW of solar capacity across the region in the coming years.

• Solarcentury Africa’s CEO, Jason De Carteret, and IDC CEO, Cornwell Muleya (both pictured above), highlighted the project’s alignment with Zambia’s industrialisation agenda, its goal to reduce reliance on fossil fuels, and the country’s Integrated Resource Plan (IRP), which aims to increase the share of renewable energy in the national energy mix.

Our take

• Despite these advancements, Zambia requires more partnerships and investments to address its ongoing energy challenges. For instance, wind energy remains significantly underutilised. While the country has the potential to generate 3,000 MW of wind power, no wind projects have been developed to date.

• Over-reliance on hydropower makes Zambia's electricity sector vulnerable to droughts and climate change. This solar project helps to diversify energy sources and reduce this vulnerability.

• By prioritising power supply to IDC's large industrial users, the project directly supports Zambia's industrialisation agenda. Reliable electricity is crucial for attracting investment, boosting productivity, and creating jobs.