Zambia Launches 300 MW Solar Plus Storage Program With Carbon Credit Incentives

Zambia has launched a major initiative to develop 300 MW of solar power projects combined with battery energy storage, marking a strong step toward a cleaner and more reliable energy system. This effort is being carried out in partnership with Norway under Paris Agreement Article 6, which allows countries to collaborate on climate goals through carbon credit trading.

At the center of this initiative is a new financial model called the “Carbon Feed-In Premium.” This mechanism is designed to attract private investment in renewable energy by offering a fixed and guaranteed payment for carbon credits generated by projects for at least ten years. This payment acts as an additional income source alongside revenue from electricity sales, helping developers overcome financial risks and making projects more viable.

A key requirement for all proposed projects is the integration of Battery Energy Storage Systems (BESS). Each solar project must include a storage capacity of at least 30 minutes. This is important for maintaining grid stability and ensuring power supply even when solar generation is low. The addition of storage will also help the country reduce its reliance on hydroelectric power, which is often affected by drought conditions, and on coal-based energy.

To qualify for the program, developers must show that their projects are at an advanced stage but have not yet begun construction. They must also prove that there is a financing gap, meaning the project cannot move forward without the support of carbon credit payments. In addition, projects must meet international environmental and social standards and contribute to national goals such as reducing emissions and creating local employment.

The application process is currently open and will close on May 31, 2026. After that, proposals will be reviewed between July and August. Selected developers will then sign agreements with ZANACO, which will manage the carbon finance payments.

This initiative highlights Zambia’s efforts to use international climate finance to strengthen energy security and accelerate its transition to a more sustainable energy future.