By 
ZCCM Investments Holdings Plc (ZCCM-IH), in partnership with the Ministry of Finance and National Planning (MoFNP), has launched a renewable energy initiative through the creation of a Special Purpose Vehicle (SPV), Zambia National Energy Corporation Limited (ZNEC).
The SPV, officially incorporated on December 12, 2025, would spearhead the country’s Presidential Constituency Energy Initiative (PCEI), bringing renewable energy solutions to all 156 constituencies.
The project represents a total investment of US$202 million, structured with 70 percent debt financing (US$141.4 million) and 30 percent equity (US$ 60.6 million).
According to a market announcement made on Monday, ZCCM-IH would contribute US$36.36 million, while MoFNP would provide US$24.24 million.
“Under the agreement, ZCCM-IH holds a 60 percent stake in ZNEC, in a related-party transaction that is expected to have limited immediate financial impact but is poised to strengthen the company’s role in Zambia’s energy transition,” according to the announcement.
ZNEC has been established as a dedicated energy investment and delivery vehicle tasked with implementing nationally significant energy projects under a structured, transparent, and commercially disciplined framework.
Its responsibilities would include project identification, feasibility studies, capital structuring, financing, execution, and oversight.
The SPV would also collaborate closely with government institutions, financial institutions, independent power producers, and private sector partners to attract investment, mitigate project risks, and ensure efficient delivery.
ZNEC would adopt international best practices in project governance, financial management, and risk oversight while aligning with Zambia’s energy policy priorities and sustainability objectives.
“The first major project under ZNEC is the PCEI, approved by Cabinet on November 24, 2025. The initiative aims to deploy renewable energy solutions, targeting 2 MW per constituency for a total installed capacity of 312 MW,” it stated.
This rollout is expected to provide reliable, clean energy access across Zambia, supporting both local development and the nation’s broader green energy goals.
ZCCM-IH emphasized that the establishment of ZNEC reflected its commitment to driving Zambia’s energy transition while creating strategic investment opportunities in the renewable energy sector.
WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.
Comments