Saturday, June 15, 2024

ZESCO, Ultra Green Corporation-Zambia ink power purchase agreement

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The government and the United States of America company have signed a power purchase agreement to develop 50 megawatts (MW) of solar energy for the next 25 years.

Minister of Energy, Peter Kapala, said the power purchase agreement demonstrates the actualisation of government’s plan to increase the country’s power generation capacity through viable public private partnerships (PPP).

Mr Kapala noted that investing in renewable energy will not only increase generation capacity but also promote sustainable economic development.

He said during the signing ceremony between Zesco Limited and Ultra Green Corporation Zambia Limited that the agreement further demonstrates the aspirations of the government to provide climate resilient solutions to energy demands.

He added that the key milestone will increase power generation and reduce the hydrological risk, which is more prevalent in the southern part of the country where major plants are located.

Mr Kapala reiterated government’s plans to scale up diversification through Zesco by accelerating the development of alternative green and renewable energy sources, such as the power purchase agreement.

“I wish to commend Zesco Limited and Ultra Green Corporation Zambia Limited for the commitment demonstrated towards actualising this key project that is a potential game changer in enhancing the power generation mix in Zambia,” Mr Kapala stated.

The minister anticipates that once the projects are established, there will be an improvement in power security, which will consequently result in more investments and economic growth.

He attributed the accomplishment to President Hakainde Hichilema’s fruitful engagements undertaken with various cooperating partners, among them the United States of America.

And Zesco Limited Acting Managing Director, Justin Loongo, revealed that the 50 megawatts solar power plant, which will be located in Serenje district, is timely as it will supplement the nation’s power generating company in the country.

Mr Loongo said the country’s power demand remains on a constant upward curve which is fueled by the relatively low access rates to electricity.

He described the partnership as strategic because it responds to Zesco’s vision of being an effective provider of reliable and environmentally sustainable electricity services to all customers by 2030.

“As Zesco Limited, we pledge to remain resolute to ensure that this partnership yields substantial benefits to the Zambian citizenry,” Mr Loongo noted.

And Ultra Green Corporation Zambia Limited Chief Executive Officer, Ravi Palaniappan, commended the government for showing political will to actualise the agreement which remained stagnant for the past three years.

Mr Palaniappan disclosed that the project will generate about 800 jobs and is expected to power a minimum of 15,000 households.

He said the power purchase agreement will provide sufficient electricity for sustainable operation of industries in Serenje district and Central Province, which are developing fast especially in the area of mining.

Mr Palaniappan emphasised that surplus power is key to any country’s gross domestic product (GDP), hence the company is happy to be part of the Zambia’s development agenda.

Meanwhile, Zesco Limited Board Chairperson, Vickson Ncube, said the power utility company is fully aligned to government’s objectives of industrialisation aimed at making Zambia become an industrial centre for the neighbouring countries and Africa as a whole.

5 COMMENTS

  1. Cant you people do things on your own why do you always want to involve other countries sure why are you saying that our people are so dumb that they cant handle all of these projects you are involcing foreign countries kashi this is really poor governance in my opinion.

  2. We need to address ZESCO delays in connecting clients to the grid. Why should it take years to connect a client?

  3. Some comments above?- awe mew – Zesco last year advertised for local suppliers to give it thousands of mere wooden poles it needed and non of you Zambians met the demand in which they were forced to jump over to Zimbabwe and South Africa(which itself doesnt have as much wood anyway). Now if you can grow a simple pole – can you manufacture a solar panel iwe imbwa iwe? Or you want the tender so you can import from HongKong?

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