ZAMBIA’S SOLAR FUTURE BRIGHTENS: IBZ INJECTS K66.5 MILLION INTO CHADIZA SOLAR INITIATIVE
Zambia's abundant sunlight makes harnessing solar electricity a golden opportunity, but securing financing for solar projects poses a significant challenge amid the country's severe drought-induced electricity deficit.
Historically reliant on hydroelectric power, Zambia's electricity sector has become increasingly vulnerable as climate fluctuations take a toll, underscoring the need for diversification into renewables like solar energy.
National power utility, ZESCO Limited is desperate for the much-needed capital injection to accelerate the many solar projects in its pipeline to address the existing energy deficit.
Indo Zambia Bank has answered this timely call. Today, the Bank has committed to investing K66.5 million into the Chadiza Solar Project, a timely boost for ZESCO, enabling the utility to bring this initiative to life.
Speaking at the signing ceremony of the Facility Agreement with ZESCO held at the Bank’s Head Office in Lusaka, Managing Director Brajesh Singh say the agreement represents a deliberate investment in Zambia’s ongoing energy development efforts.
“This support through this Stability and Resilience Facility will make a tangible difference in Chadiza through ZESCO’s Greening City innovation. Chadiza, as we understand, is a community that has long endured unstable power supply due to unreliable generation,” he says.
“By bringing generation capacity closer to the people, the project will stabilize supply, reduce outages, and transform lives. It will power schools, health facilities, businesses and households, unlocking new opportunities for enterprise and education while driving economic activities.”
The Chadiza Solar project will provide 2.5MW of electricity into the national grid and will have battery energy storage, enhancing grid stability and maximizing renewable energy benefits.
“This project is a vital step in ZESCO’s strategy to diversify its energy mix and strengthen grid reliability in underserved areas like Chadiza, bringing clean, stable electricity to more Zambians,” says Eng. Justin Loongo, Managing Director at ZESCO.
“The inclusion of battery energy storage ensures we maximize the benefits of renewable energy during peak demand or at night,” adds Eng. Loongo.
Zambia has made notable strides in solar energy, with the onboarding of projects like the 100MW Chisamba Solar Phase 1 and 25MW by Mailo, while others like the 50MW Mansa Solar project near completion. The country aims to harness 1000MW of solar energy by year-end.
With continued investment and existing policy support, Zambia is moving in the right direction insofar as unlocking its vast solar potential and build a more resilient energy sector.