UAE to Invest $2 Billion in Solar Power in Zambia

In a bid to step-up the renewable energy expansion in the resource-scare continent of Africa, UAE has signed a key agreement with Zambia to provide $2 billion for the development of solar power plants. The said investment is expected to increase the power generation base the southern African country by more than half.

Zambia President Hakainde Hichilema said on Twitter that an MoU and a Joint Development Agreement were signed between the two countries. Under the scheme of things, a joint venture will be created between Zesco and  Masdar that will target the development of 2,000 MW of solar power projects in Zambia.

Zesco is state-owned power utility of Zambia and Masdar is UAE government-owned renewable energy firm. The construction of the solar projects in Zambia will take place in different phases. First the joint venture will installation 500MW of solar power. The financial support from UAE is not a loan in nature but a capital infusion and Zambia will have a shareholding as partners.

At present, Zambia is producing about 3,500 MW of power. Since the water levels have gone down in the in the Kariba Dam, the power production has reduced and the cities and industrial locations in Zambia are suffering from rolling blackouts that would often last as long as 12 hours a day.

President Hichilema said, “The historical significance of this project is that, in the last 58 years of our independence, the country only developed 3,500 megawatts of electricity. This remarkable investment shall bring in the much needed 2000 megawatts, within a shorter period of time.”

Zambia is popular as top supplier of copper across the globe. The President mentioned, “We are transforming our small or artisanal mining sector from the demeaning situation where they were being labelled illegal miners (jerabos) to an environment where they can obtain licences, assisted with some capital and equipment and provide ready market for them within the vicinity of their operations.”

Last year, Chariot Ltd and Total Eren signed a deal with First Quantum Minerals Ltd that to help the development of a 430 MW renewable power complex to help First Quantums’ mining operations in Zambia.