Zambia Development Agency, firm sign investment deal to drive 200MW Luanshya solar plant

A planned $240 million investment in a 200-megawatt solar power plant in Luanshya could lift Zambia’s electricity generation capacity and create jobs after the Zambia Development Agency (ZDA) signed an Investment Promotion and Protection Agreement (IPPA) with Metro Gold.

The project is said to form part of efforts to address the country’s power deficit and strengthen energy security through increased private sector participation in renewable energy.

Speaking at the signing ceremony on Thursday at the ZDA offices in Lusaka, Metro Gold Developer, Kebby Muteteete, said the investment was made possible by Government’s decision to open up the energy sector to independent power producers.

He said the project would have significant economic benefits for the local community, creating several jobs and providing livelihoods for residents in and around Luanshya.

“This project is for Zambians. Our people are going to be employed, with over 200 local jobs created for residents of the area,” Dr Muteteete said.

He added that the signing of the IPPA paved the way for the project to move into its implementation phase.

Meanwhile, ZDA Director-General, Albert Halwampa, said government had introduced reforms to accelerate investment approvals in the energy sector, reducing the processing time for key permits to as little as 48 hours.

Halwampa said the measures were aimed at attracting investment needed to diversify Zambia’s energy mix after drought exposed the country’s heavy dependence on hydroelectric power.

He noted that Zambia currently has an installed electricity generation capacity of 3,800MW, with hydro accounting for about 80 percent of total production.

“Our ambition is to generate in a very short time more than what we have done in the 60 years since independence. This is very ambitious, but the leadership provided by the President is opening up the sector for robust public-private participation,” he said.

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