By Nation Reporter
BIDS from seven leading renewable energy developers seeking to build large-scale solar power plants in Zambia have been opened by the Industrial Development Corporation (IDC).
Developers bidding for tariffs ranging from US¢6.02 per kilowatts to US¢ 10.6 per kilowatt are: Access / Eren Zambia 1, EDF Energies Nouvelles, Enel Green Power S.p.A, Mulilo Zambia PV1 Consortium, Globeleq NEOEN S.A.S. / First Solar Inc and Shanghai Electric Power /AVIC.
According to a statement released by IDC, the winning bidders would be selected on the basis of the lowest proposed tariff.
The proposals relate to the development of two utility-scale solar power projects of up to 50 megawatts each, the first large-scale solar Independent Power Producers (IPPs) in Zambia’s history and the inaugural projects for the World Bank Group’s scaling up solar programme.
The two projects were expected to help Zambia address its on-going power shortages.
The International Finance Corporation (IFC), a member of the World Bank Group, acted as lead transaction advisor to the Government of Zambia and helped run the tender process for the two projects, which started in October 2015.
The tender initially attracted 48 developers, of whom 11 were prequalified for the subsequent bidding process and in the end, seven bidders submitted final proposals.
Local Zambian participation in the two projects would be ensured through IDC taking a 20 percent shareholding in each of the two project companies.
IDC chief executive officer Andrew Chipwende said the organisation was delighted with the high level of competition and the quality of bidders that scaling solar had delivered.
The International Finance Corporation’s PPP transaction advisory services team chief executive officer Dan Croft said solar power had enormous potential to help African countries meet their energy needs.
Mr Croft said the experience in Zambia had proved the effectiveness of scaling solar to help countries add solar power to their energy mix quickly and affordably.