In a landmark development for Zambia’s energy future, the country’s largest solar initiative the Ngwenya Solar Project has officially reached financial close, unlocking over $100 million in funding and setting the stage for a 100-megawatt (MW) solar farm that will power thousands of homes, reduce pressure on the national grid, and diversify Zambia’s energy portfolio.
What the Project Means Right Now
The Ngwenya Solar Project, located 40 kilometers west of Lusaka, is spearheaded by Globeleq, a UK-based independent power producer, in partnership with the Emerging Africa Infrastructure Fund (EAIF), the International Finance Corporation (IFC), and South Africa’s Industrial Development Corporation (IDC).
At financial close, a milestone indicating that all conditions for construction financing are met, the project has secured a $30 million loan from EAIF, alongside equity contributions and guarantees from partner institutions.
The solar farm will produce 100 MWp (megawatts peak) of electricity under a 25-year Power Purchase Agreement (PPA) with Zambia’s state-owned utility, ZESCO. This PPA guarantees that energy generated will be fed directly into the national grid, stabilizing electricity supply for both residential and commercial users.
The Bigger Picture: Energy Security and Economic Impact
The Ngwenya Solar Project arrives at a critical time for Zambia, where hydropower accounts for over 80% of electricity generation. Prolonged droughts worsened by climate change have diminished water levels at major dams like Kariba, forcing frequent load-shedding and blackouts.
This solar farm alone is expected to:
- Power between 120,000 and 150,000 homes.
- Significantly reduce Zambia’s carbon footprint by offsetting fossil fuel alternatives.
- Create hundreds of jobs during construction and dozens more in long-term operations.
- Stimulate investment confidence in Zambia’s renewable energy sector.
Globeleq CEO Mike Scholey noted, “The successful financial close of Ngwenya is not just a win for Zambia, but for Africa’s energy transition. It signals investor confidence in Zambia’s regulatory environment and the viability of solar as a reliable energy source.”
Government Goals: 1,000 MW of Solar by 2025
President Hakainde Hichilema’s administration has pledged to add 1,000 MW of solar power to the grid by the end of 2025, a plan motivated by the dual needs to curb blackouts and decarbonize Zambia’s power sector.
Ngwenya’s financial close brings this target closer to reality, joining other large-scale solar efforts:
- Itimpi Solar Farm: A 60 MW plant near Kitwe, recently expanded with green bonds for an eventual 236 MW total.
- Kabwe Solar Project: A 100 MW initiative under development by POWERCHINA.
- Choma Solar Station: A 60 MW project with integrated battery storage, expected to go live in late 2025.
These projects collectively reflect Zambia’s pivot toward solar resilience in the face of increasingly erratic hydropower performance.
Why Hydropower Alone Can’t Sustain Zambia Anymore
Historically, Zambia relied on the mighty Zambezi River and its vast dam systems for energy. However, recent climate models project reduced rainfall and hotter temperatures, threatening water levels and, consequently, power output.
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In 2019 and again in 2022, Zambia experienced up to 15 hours of daily load-shedding in urban areas due to drought-related hydro shortages.
By integrating large-scale solar like Ngwenya into the grid:
- Daytime energy needs are met directly by solar generation.
- Pressure on hydropower facilities is reduced, especially during dry seasons.
- Water resources can be conserved for use in agriculture and drinking supply.
Jobs, Skills, and the Local Economy
The project is expected to generate:
- Over 400 jobs during construction, including civil works, panel installation, and logistics.
- 50+ long-term roles in operations, maintenance, and security.
- Training opportunities in solar installation, electrical engineering, and power plant operations for local youth and technical colleges.
These impacts stretch beyond wages. The local economy will benefit from:
- Increased demand for food, transport, and accommodation services during construction.
- Infrastructure upgrades to support energy access.
- Improved business confidence in energy-reliant industries like manufacturing and IT.
What “Financial Close” Actually Means and Why It Matters
Reaching financial close means:
- All funding sources have committed and disbursed.
- Legal agreements like the PPA have been finalized.
- Construction timelines are locked and ready.
For investors, this milestone reduces project risk. For the government, it ensures construction is guaranteed. And for citizens, it means power will start flowing in 18–24 months.
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In emerging markets like Zambia, where private-public partnerships can be complex, financial close is a powerful signal that a project is bankable and that regulatory systems are stable.
Environmental Benefits and Climate Adaptation
Beyond powering homes and businesses, Ngwenya will:
- Save over 100,000 metric tons of CO₂ emissions annually.
- Reduce air pollution associated with diesel generator backups.
- Require no water for energy production, a critical benefit in water-stressed regions.
Solar projects like Ngwenya align with Zambia’s commitment to:
- The Paris Agreement on climate change.
- SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).
Experts at the Zambia Institute for Environmental Sustainability noted, “Ngwenya is a climate-smart project. It decouples energy production from water resources and helps Zambia meet its low-carbon development goals.”
