Energy – ZDA

Energy Sector

Energy is a key economic driver of the Zambian Economic Transformation Agenda

Installed capacity of 3,700 MW

Send a letter of intent/ interest to the Ministry of Energy (copy in ZDA) with the following :

1. Generation Capacity
2. Proposed site/location (coordinates)
3. Projected investment amount
4. State whether off-grid or on-grid
The Ministry of Energy will respond with an approval granting the applicant feasibility rights on the proposed location
Company Registration with PACRA and TPIN Registration with ZRA
Apply for the Investment Certificate of Registration with ZDA using this link: https://www.zda.org.zm/e-services/
Approval from the Zambia Environmental Management Authority (ZEMA) through an Environmental Impact Statement (EIS).
Approval from the Energy Regulation Board (ERB).Off-grid developers with an installed capacity over 1MW must apply tariffs approved by ERB based on allowed costs determined through a periodic review process.
Determination of allowed costs
Evaluation of allowed costs
Approval of proposed tariffs
Issuance of license from Energy Regulation Board (ERB)

Ngonye Falls Hydroelectric Project is a project by Western PowerCompany. The project will be the largest run-of-river hydro in Zambia and largest Zambian renewable private power producer (IPP) with 180 MW capacity and 830 GWhr per year of energy generation. Technical Details • All technical studies including designs, • Proven technical and economic feasibility •Community Participation Agreement completed with the host community and Environmentaland Social Impact Assessment completed and approved by the regulator.
Project Location	Zambezi River, Western Province
Lead Agency/Project Promoter	Western Power Company Limited
Action required/implementation	Partners
Project Typology/Arrangements	FDI through a Majority Stake
Project Cost	USD 600 Million
Project Status	Greenfield
Period of Implementation	3-4 years

The project is into distribution and supply of electricity and intends to reach its full potential. The project is open to 75% equity purchase at $32.1 million and the investor(s) would be expected to refinance the existing medium-term loan of $3.2 million and to aid with the ongoing expansion projects (distribution and reticulation network) at $4 million and the Solwezi concession shareholders loan at 58 million; The company is expected to generate positive operating cashflows with, gross profit margins of 39% and a steady increase in the EBITDA Margin of 13% in 2022 to 19% in 2026.
Project Location	North Western Province, Zambia
Lead Agency/Project Promoter	North Western Energy Company Limited
Action required/implementation	Partners
Project Typology/Arrangements	FDI through Minority stake
Project Cost	USD 104,719,000
Project Status	Greenfield

This project involves the setting up and running of a factory to produce high quality and sustainable char briquettes targeted for the local Zambian market. The char briquettes will be made from 100% recycled biomass, which will result in a number of Zambian households transiting from using unsustainable and hazardous charcoal (or firewood) to healthier renewable energy. The char-briquettes factory is projected to have an increasing annual revenue starting from 90,000 USD per year and an EBITDA of 40%.
Project Location	Lusaka District, Lusaka Province, Zambia
Lead Agency/Project Promoter	Umlimi Trading Limited
Project Typology/Arrangements	Open for FDI through a Minority Stake
Project Cost	USD 150,000
Project Status	Greenfield

The project involves the installation of a minimum 8.53kWp solarpower generating system and the construction of a total of 1.5km of 400V overhead line.The 400V lines should be constructed using 9m wood poles with suspension clamps on intermediate and through angle poles, and strain clamps on terminal poles. While the Aerial Bundled Conductor of size 25mm2 should be used and each span shall be 50m in length. Where the line crosses a road, 12m poles shall be used to guarantee safe clearance for high vehicles and machinery.
Technical Details
The project is economically viable with;
• ENPV of K1.5 million (USD 18,333.3)
• EIRR of 23% and with • Life span of 20 years.
Project Location	Senga Hill District, Northern Province, Zambia
Lead Agency/Project Promoter	Rural Electrification Authority (REA)
Action required/implementation	Partners
ProjectTypology/Arrangements	FDI through a Majority stake/Management Contract
Project Cost	USD 93,674.01
Project Status	Greenfield