ZESCO Signs 25-Year PPA For 500 MW Solar Project In Zambia

Zambia’s national power utility, ZESCO Limited, has signed a 25-year Power Purchase Agreement (PPA) with Hungarian climate infrastructure company EnerSynk Group for a 500 MW solar power project. The agreement is expected to support Zambia’s efforts to expand renewable energy generation and reduce its dependence on hydropower.

The project comes as Zambia faces growing challenges in maintaining reliable electricity supplies due to drought conditions that have affected hydropower generation. The addition of 500 MW of solar capacity is expected to strengthen the country’s electricity system by providing an additional source of clean power and helping diversify the national energy mix.

ZESCO Acting Managing Director Fitzpatrick Kapepe said that broadening the country’s energy sources is important for reducing the economic risks associated with climate-related disruptions. The project is also aligned with President Hakainde Hichilema’s Grow Zambia Agenda, which seeks to increase Zambia’s overall electricity generation capacity to around 10,000 MW.

Albert Halwampa, Director General of the Zambia Development Agency, highlighted the importance of expanding electricity availability to support economic growth. Zambia’s mining, agriculture, manufacturing, and tourism sectors are expected to require greater power supplies as economic activity expands. The copper mining industry is particularly significant, with the country targeting annual copper production of three million tonnes.

The proposed solar project represents approximately five percent of Zambia’s 10 GW national generation capacity target. EnerSynk Group will manage the project’s strategic and commercial activities from its headquarters in Budapest, Hungary, while the solar generation facility will be developed in Zambia.

The company has described the project as an example of cooperation between European and African stakeholders in advancing renewable energy development. Over its planned 25-year operating period, the facility is estimated to generate between $2.8 billion and $3.7 billion in gross revenue, depending on the final tariff arrangements.

The project is also expected to deliver significant environmental benefits. Estimates indicate that the solar plant could avoid approximately 835,000 tonnes of carbon dioxide emissions each year. Over more than two decades, cumulative avoided emissions could exceed 21 million tonnes.

Following the completion of the PPA, the project will move into further development activities. EnerSynk and ZESCO are expected to undertake bankable feasibility studies, grid impact assessments, and environmental evaluations. The partners will also work toward securing the financing required to move the project into construction.