Government says it is in the process of developing a technical assistance framework to spur private sector participation in the development and provision of renewable energy in the country.
ZANIS reports that the National Designated Authority (NDA) under the Ministry of National Development Planning says plans are advanced to provide technical support and financing to promote Independent Power Producers (IPP) in the country.
Over US$100 million of financing from the South Korea based Green Climate Fund (GCF) will be channeled to facilitate implementation of the Zambia Renewable Energy project.
NDA National Coordinator Francis Mpampi said the Renewable Energy Technical Assistance project intends to finance the private sector to set up electricity generation plants as an alternative source of energy in the country in light of continued effects of climate change that have affected hydro electricity generation.
Mr Mpampi explained that the technical assistance project will help prepare and build the capacity of financial institutions to assess and finance the development of renewable energy projects in the country.
He pointed out that the renewable energy sector in the country has not been exploited due to lack of investment and technical capacity to maximize the massive energy potential.
Mr Mpampi said that the NDA has identified the National Pension Scheme Authority (NAPSA) as an institutional investor in the sector and ZANACO as a financial lending institution for the renewable energy project.
He said the NDA will soon engage government ministries, departments and agencies to strengthen mainstreaming of climate change programming in government operations and facilitate application for financing arrangement for climate resilience projects in the country from the green climate fund (GCF).
Mr Mpampi said the NDA will continue to engage and sensitise government institutions and the private sector to develop project proposals for funding by the GCF to address climate change effects in the country.