AfDB, Green Climate Fund provide $154m to install 100MW of clean energy in Zambia
London, Nov. 25, 2019 (AltAfrica)-The African Development Bank (AfDB) and the Green Climate Fund (GCF) have formalised a $ 154 million financial support to assist Zambia deploy 100 MW of green energy
The investment comes in a context where the country is facing a severe drought, which affects the national electricity production, more than 90% of which is hydroelectricity. Zambia will use small-scale solar to strengthen its climate-vulnerable power supply
Under the five-year funding framework, the two partners will work with the Zambian government to put in place a guaranteed buy-back system for electricity generated by the projects that will be developed under the program.
In the detailed agreement, $150 million will be a debt that will be used to finance P3s (public-private partnerships), most of which will be small-scale solar projects.
The remaining $ 4 million will be used to support public and private sector players who will gain expertise in this area, says the specialized PV Tech website .
The drought that has been raging since the beginning of the year mainly affects agricultural production. According to AFP, water shortages have pushed two million Zambians to the edge of famine .
As documented by news outlets worldwide, below-average rainfall during the latest wet season – November to March – has tightened the screws on Zambia’s farmers. In late October, AFP reports warned water shortages have pushed two million Zambians to the “brink of starvation.”
AfDB’s and GCF’s attempts to offset the impacts on power supply of energy Zambia via solar come as fellow development financiers, chiefly the World Bank’s Scaling Solar programme, work to boost the utility-scale market via tenders.
So far this year, the programme has produced a 54MW debut – Neoen’s and First Solar’s Bangweulu plant, completed in March – and Enel’s 34MW Ngonye successor, a US$40 million project delivered in April. Both are contracted to supply state-run utility ZESCO via a 25-year PPA