Enel Green Power has signed a 25-year PPA with Zambia’s state-run utility ZESCO for a 34MW PV project in the Lusaka South Multi-Facility Economic Zone in southern Zambia.
Enel acquired the Ngonye project in June during the first round of the International Finance Corporation’s (IFC) Scaling Solar Programme in Zambia, infamous for its record-low tariffs.
This is Enel’s first venture into Zambia’s renewable energy market, with the firm investing about US$40 million in the building of the plant. Once in action, the plant is estimated to produce about 70GWh yearly.
Ngonye will be retained by a special purpose vehicle in which Enel will have an 80% majority share with state investment holding company Industrial Development Corporation (IDC) taking 20%.
The project is another stride in Zambia expanding its renewable energy mix, as the nation is naturally dependent on hydro projects to satiate its clean energy objectives. Nevertheless, Zambia is working towards installing up to 600MW of solar generation capacity in the next two-three years.
In associated news, French firm Neoen also signed a PPA with ZESCO for a 54MW PV plant under the Scaling Solar programme.
Enel is a world-wide power company and a chief incorporated player in the global energy, gas and renewables markets. It is the biggest integrated utility in Europe in relations to market capitalisation and numbers among Europe’s principal power companies in relations to installed capacity and stated EBITDA.
The Group runs in over 30 nations globally, producing energy through roughly 85 GW of managed capacity. Enel mete out electricity and gas over a network of over 2 million kilometres, and with over 65 million business and home clienteles universally, the Group has the biggest client base among European competitors.
Enel’s renewable energy division Enel Green Power already achieves nearly 38 GW of wind, solar, geothermal, biomass and hydropower plants in Europe, the Americas, Africa and Asia.