Solar power system in Zambia. Source: UNIDO. License: Creative Commons, Attribution-NoDerivs 2.0 Generic
April 4 (Renewables Now) - Enel Green Power (EGP) said on Tuesday it has signed a long-term power purchase agreement (PPA) with Zambia’s state-owned utility ZESCO for a 34-MW solar project in the African country.
The 25-year deal concerns the Ngonye photovoltaic (PV) project, previously known as Mosi-oa-Tunya, which was awarded to the renewables arm of Italy’s Enel SpA (BIT:ENEL) in the first round of the Scaling Solar tender last June.
EGP expects to invest about USD 40 million (EUR 37.6m) in the construction of the plant. It will hold an 80% stake in the asset, while state-owned investment holding company Industrial Development Corporation Limited (IDC) will own the rest.
The Ngonye facility will be built in the Lusaka South Multi-Facility Economic Zone in southern Zambia. It is Enel’s first renewable energy project in the country.