ZESCO signs 25-year PPA with EnerSynk for 500 MW solar project in Zambia

Zambia’s national power utility, ZESCO Limited, has signed a 25-year Power Purchase Agreement (PPA) with Hungarian climate infrastructure company EnerSynk Group for a 500 MW solar power project.

The project is being developed as Zambia faces increasing pressure on electricity supply, with drought conditions reducing hydropower generation. The addition of 500 MW of solar capacity is expected to enhance the reliability of the power system by providing a new source of clean energy and reducing the country’s reliance on hydropower. The development also supports President Hakainde Hichilema’s Grow Zambia Agenda, which aims to expand Zambia’s total electricity generation capacity to approximately 10,000 MW.

The proposed solar project would account for approximately 5% of Zambia’s targeted 10 GW national power-generation capacity. EnerSynk Group will oversee the project’s strategic and commercial activities from its headquarters in Budapest, Hungary, while the solar facility itself will be developed in Zambia. The company has positioned the development as a model of European-African collaboration in advancing renewable energy infrastructure. Over its projected 25-year operating period, the facility is expected to generate gross revenues of approximately $2.8 billion to $3.7 billion, depending on the final tariff structure.

The project is expected to generate substantial environmental benefits by reducing reliance on carbon-intensive power generation. The solar facility is estimated to avoid around 835,000 tonnes of CO₂ emissions annually, with total avoided emissions projected to exceed 21 million tonnes over its operating period. Following the signing of the PPA, the project will advance to the next stages of development, including bankable feasibility studies, grid impact assessments and environmental evaluations. EnerSynk and ZESCO will also work toward arranging the financing necessary to bring the project to the construction stage.