energy

Zambia brings 100MW solar plant into operation

Zambia has brought a 100MW solar plant in Sinazongwe into operation, with electricity from the project now being evacuated to the national grid.

Zambia

Zambia

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Zambia has brought a 100MW solar plant in Sinazongwe into operation, with electricity from the project now being evacuated to the national grid. The Maamba Solar Energy project has a 20-year power purchase agreement with ZESCO, Zambia's state owned electricity utility. The project represents an investment of about $90 million.

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Zambia has brought a 100MW solar plant in Sinazongwe into operation, with electricity from the project now being evacuated to the national grid. The Maamba Solar Energy project has a 20 year power purchase agreement with ZESCO, Zambia's state owned electricity utility. The project represents an investment of about $90 million. Maamba Solar Energy is owned by Nava Global, with a 65% stake, and ZCCM Investments Holdings, which owns 35%. Nava announced the commissioning on 24 September. 

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The timing is significant for Zambia, where electricity supply has been hit by the country's dependence on hydropower and periods of low rainfall.

Zambia's hydro dependence has become a problem

The challenge for Zambia is no longer just adding generation. It also has to move that electricity to the businesses that need it.

Hydropower remains an important part of Zambia's electricity system. But when water levels fall, so does the amount of power that can be generated. The drought related power shortages of recent years exposed that weakness. Businesses, particularly mines and manufacturers, have had to deal with interruptions and find alternative sources of power when the grid cannot meet demand.

The new solar plant gives the grid another source of generation. It also comes with a limitation. The plant will only generate electricity when there is sufficient sunlight, so it cannot replace the role played by hydro or other generation sources overnight. That is one reason Zambia's push into solar is happening alongside efforts to develop other forms of generation and strengthen the grid.

More solar projects are waiting behind it

Maamba is not an isolated project. Earlier in September, Hungary-based EnerSynk Group signed a 25 year PPA with ZESCO for a proposed 500MW solar project in the Copperbelt. Another project, a 67MWp solar plant near Chisamba, is being developed by Solarcentury Africa and Zambia's Industrial Development Corporation.

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Those projects are at different stages and are not yet supplying power. The Maamba plant is further along. It has reached the point where electricity is being evacuated to the national grid. That distinction matters in Zambia's current energy market. There is no shortage of announced power projects. The harder part is getting them financed, built and connected.

Industries need dependable power

Zambia's mining industry is one of the country's biggest electricity users, while manufacturing and agro processing also depend on reliable supply. A power interruption can mean machinery sitting idle, production being delayed or businesses turning to backup generators.

The 100MW from Maamba will not remove those problems. Its contribution will depend on how much power the plant generates and where that electricity can be delivered through the transmission network. The grid itself is becoming a bigger part of Zambia's energy investment needs as more independent power producers bring projects online. Solar generation in one part of the country is of limited use to an industrial customer somewhere else if the transmission network cannot carry the electricity.

Solar capacity is growing

Zambia's solar capacity has been increasing as developers respond to the country's electricity shortage. PV Magazine reported that the 136MW Itimpi II solar project started operating in May, while the Chisamba solar plant was expanded from 100MW to 200MW in July. Zambia's Ministry of Energy puts operational solar capacity at 841MW, according to the publication.  The figures will change as more projects are completed. For now, Maamba is one of the latest examples of Zambia turning a solar project into operating generation. The next question is whether the country's transmission network and other parts of the electricity system can keep up as more solar capacity comes online. For businesses, that is likely to matter as much as the headline number of megawatts.

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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