Long term power deal sealed

By BUUMBA CHIMBULU
A twenty-five-year Power Purchase Agreement (PPA) has been signed by the Lusaka South Multi-Facility Economic Zone (LS-MFEZ) in an effort to reduce load on Zesco.
This is for a solar power project called Lusanje, with an initial investment of US$25 million.
Lusanje Power Limited is a joint venture between LS-MFEZ and Serenje Limited, a South African company with vast expertise in solar power energy.
The Independent Power Producer (IPP) project will be the first utility-scale self-generating photovoltaic (PV) Solar in Zambia.
The signing demonstrates the Zone’s commitment to reduce its reliance on the already strained national grid and transitioning to clean energy, according to the LS-MFEZ Managing Director, Kennedy Mwila.
Mr Mwila said the Lusanje Solar Project would help the LS-MFEZ to meet the energy needed of existing investors as well as those of new developments in the Zone
“Committed to Zambia’s fight to reduce the negative effects climate change has, while helping companies within the Zone achieve their ESG goals in line with government’s pronouncements to promote the green economy,” he said when commenting on the PPA.
Feasibility studies are expected to start in first quarter of 2022 while discussions with lenders have run parallel to all other processes and are expected to be completed by fourth quarter of 2022, when construction is planned to commence.
And Serenje Limited Director, Prince Nyati, said: “We are pleased to achieve this major milestone as it allows us to engage constructively with financiers. The Lusanje Project is extremely important to us firstly because it is a Zambian-led project and it is the first of the 140megawatts pipeline we are developing in Zambia.”
The project will provide affordable access to energy users in the Economic Zone, reliable clean energy, making the LS-MFEZ the first self-powered green industrial economic zone in the country.
The solar facility is expected to reduce reliance on electricity supply from Zesco and help to ease pressure on the national grid.
The signing of the PPA, announced on Wednesday 15th December 2021 by Serenje, which is jointly developing the off-grid power project with the LSMFEZ sited the signing of the agreement as a major milestone which comes after the two parties signed a Joint Development Agreement in April 2021.