Two teams preferred bidders for Zambia’s solar projects

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Two teams preferred bidders for Zambia’s solar projects

Zambia’s Industrial Development Corporation (IDC) has opened bids from seven renewable energy developers seeking to build large-scale solar power plants in the southern African country where power shortages are acute. The bid tariffs have ranged from US$6.02 ¢/kWh to 10.6¢ / kWh at the low end.

The proposals, initially submitted on May 6, relate to the development of two utility-scale solar power projects of up to 50 MW each. These would be the first large-scale solar IPPs in the country and the inaugural projects for the World Bank Group’s Scaling Solar program. IFC, a member of the World Bank Group, acted as lead transaction advisor to the Government of Zambia and since October 2015 have helped run the tender process for the two projects. 

The tender initially attracted 48 developers, of which 11 were prequalified for the subsequent bidding process. Seven bidders submitted final proposals. These were:

  • Access / Eren Zambia 1
  • EDF Energies Nouvelles
  • Enel Green Power S.p.A.
  • Mulilo Zambia PV1 Consortium
  • Globeleq
  • NEOEN S.A.S. / First Solar Inc.
  • Shanghai Electric Power / AVIC

Winners for the two projects will be selected on the basis of the lowest proposed tariff.  Provisional results indicate that NEOEN S.A.S. / First Solar Inc. and Enel Green Power S.p.A. will win the two projects at tariffs of 6.02¢ / kWh and 7.84¢ / kWh respectively. These proposed tariffs will remain fixed for 25 years.  However, an official announcement will be made at that time.

Local Zambian participation in the two projects will be ensured through IDC taking a 20 percent shareholding in each of the two project companies. 

IDC Chief Executive Andrew Chipwende, said:

“IDC is delighted with the high level of competition and the quality of bidders that Scaling Solar has delivered. To get from His Excellency the President’s initial procurement directive to the opening of financial proposals in ten months has only been possible through the adoption of the Scaling Solar model, which brought together all the necessary public sector stakeholders, led by the Ministry of Finance, as well as the various members of the World Bank Group.”

Dan Croft, Senior Investment Officer for IFC’s PPP Transaction Advisory Services team, said:

“The experience in Zambia has proven the effectiveness of Scaling Solar to help countries add solar power to their energy mix quickly and affordably. We look forward to delivering similar results in Senegal, Madagascar and other countries.”

List of country news

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  • February 24, 2016

    Zambia opens second stage of 100 MW solar tender

    The Industrial Development Corporation of Zambia has announced the beginning of the second step in the bidding process for the development of 100 MW of solar power projects across the country. Read more
  • January 19, 2016

    Zambia prequalifies 11 for 100 MW solar projects

    The Industrial Development Corporation of Zambia Ltd (IDC) announced in late December it has prequalified 11 teams for the development of 100 MW of solar power projects. Read more
  • March 12, 2014

    Standard Chartered PE acquires stake in energy firm in Zambia

    The private equity arm of Standard Chartered acquired a stake in Copperbelt Energy Corporation (CEC) the company that distributes power to mines operating on the Copperbelt, a mineral-rich region in Zambia. Read more

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