• Zambia has commissioned the 100MW second phase of the Chisamba Solar Power Plant, doubling capacity at the site to 200MW
• Phase II was completed faster and at a lower cost than the first plant, strengthening the case for repeat development on serviced sites
• The project links mining demand, commercial finance, regional electricity trading and utility infrastructure within one power model

 Harare - Zambia commissioned the 100MW second phase of the Chisamba Solar Power Plant on 21 July 2026, doubling installed capacity at the Central Province site to 200MW and creating the country’s largest solar complex.

President Hakainde Hichilema opened the plant seven months after construction began and about a year after the first 100MW phase entered service. PowerChina delivered the engineering and construction works for both plants.

The expansion strengthens Zambia’s shift toward an electricity system supported by industrial demand, commercial finance and regional power trading. Chisamba gives the country additional daytime generation, reduces pressure on drought exposed hydropower and supports the mining operations that drive copper exports, tax receipts and foreign currency earnings.

The project responds to a power system heavily concentrated in hydroelectricity. Falling reservoir levels during the recent drought pushed rolling blackouts to as much as 17 hours a day, constrained industrial production and increased Zambia’s dependence on regional electricity imports. Solar capacity allows ZESCO to conserve reservoir water during daylight hours and deploy hydroelectric generation during evening peaks when photovoltaic output declines.

The first 100MW phase established the commercial structure underpinning the wider Chisamba story. Kariba North Bank Extension Power Corporation, a wholly owned ZESCO subsidiary, developed the plant at a total cost of about US$100 million. Stanbic Bank Zambia provided US$71.5 million in commercial debt supported by a 13 year power purchase agreement with GreenCo Power Services.

GreenCo signed a separate electricity supply agreement with First Quantum Minerals, creating a long term industrial revenue stream capable of supporting project debt. The financing required no sovereign guarantee and carried no recourse to ZESCO. The utility retained its position as shareholder, grid operator and transmission service provider under system operations and network use agreements.

The structure allocated project risks across the institutions equipped to manage them. Stanbic lent against contracted cash flows. GreenCo assumed the power purchase commitment and managed the supply profile. First Quantum provided predictable industrial demand. ZESCO supplied grid access and transmission capacity. PowerChina constructed the asset.

First Quantum’s electricity requirement gave lenders confidence in the project’s revenue base. Mining operations consume power continuously across extraction, crushing, milling and processing. A large copper producer offers predictable demand, stronger credit quality and a longer operating horizon than a fragmented customer base exposed to tariff collection constraints.

GreenCo also converts intermittent solar output into a firm electricity product. The trader blends Chisamba generation with power sourced through the Southern African Power Pool, allowing First Quantum to receive supply aligned with continuous mining operations. This aggregation role becomes increasingly important as Zambia adds more solar generation and requires balancing power outside peak sunlight hours.

Phase II adds a second commercial layer through lower construction costs and faster execution. Hichilema placed the cost of the first plant at US$100 million and Phase II at US$75 million, representing a saving of about US$25 million for the same nameplate capacity. Other public estimates have ranged from US$70 million to US$79 million.

Even at the upper end of that range, the second plant cost about one fifth less than Phase I. Construction took seven months compared with ten months for the first plant. The decline shows the economic advantage of expanding on a serviced site with an established contractor, grid connection, operating team, road access and technical systems already in place.

The lower cost strengthens the replication case for Zambia’s wider solar programme. Repeat construction on existing sites reduces mobilisation requirements, shortens development timelines and spreads infrastructure costs across a larger generation base. These savings improve project returns and support lower electricity tariffs where financing costs and contractual terms remain competitive.

The commercial structure of Phase II remains less transparent. Public accounts have named both Kalungwishi Power Corporation and Kariba North Bank Extension Power Corporation as the project developer. Both entities are ZESCO subsidiaries. The lender, tariff, power purchase agreement and final electricity buyer attached to the additional 100MW have not been fully disclosed.

The US$71.5 million Stanbic facility belongs to the first plant. Disclosure of Phase II’s funding and offtake terms will determine whether the additional capacity extends the commercially financed model established under Phase I or follows a separate structure.

First Quantum’s role connects power investment directly to Zambia’s copper growth strategy. Electricity interruptions reduce equipment utilisation, delay ore processing, raise maintenance costs and weaken production efficiency. Reliable renewable supply protects mine uptime and supports further investment in processing capacity.

The national system also gains additional electricity. Under the documented Phase I structure, Chisamba generation enters the interconnected grid while GreenCo allocates contracted supply to First Quantum. This covers part of the miner’s demand and releases other ZESCO generation for allocation across the wider system.

The benefit reaching households and smaller businesses depends on transmission capacity, dispatch decisions, distribution performance and system losses. Additional generation produces its strongest economic return when the grid carries the power reliably to productive users.

Chisamba therefore converts mining demand into a financing tool for national energy infrastructure. Zambia’s largest power users provide the predictable revenues required to fund generation assets, while ZESCO retains the network role and earns transmission and system use income.

This model addresses a persistent regional constraint. Southern African utilities need additional generation while weak balance sheets and restricted public finances limit direct investment. Mining companies need dependable electricity while many self generation projects remain confined to individual operations. Chisamba connects the corporate buyer, commercial lender, energy trader and public utility within one grid based arrangement.

The structure has attracted political scrutiny because First Quantum receives contracted supply while households continue to experience outages. The economic case rests on the additional capacity created for the system and the absence of ZESCO debt under the documented Phase I financing. Public confidence will depend on visible improvements in electricity availability as new plants enter operation.

Zambia’s solar programme also remains behind its original timetable. The country previously targeted 1,000MW of additional solar capacity by the end of 2025. That deadline passed before the target was achieved. Recent official statements retain the 1,000MW ambition without a firm completion date.

Hichilema said ZESCO had delivered about 800MW of solar capacity against Zambia’s wider objective of reaching 10,000MW of national generation capacity by 2030. Further projects are planned at Choma, Chipata, Siavonga, Serenje, Kasama and Kafue Gorge.

The programme improves the operating value of Zambia’s hydroelectric assets. Solar supplies daytime demand and allows reservoir water to be preserved for evening peaks and periods of weaker sunlight. This gives ZESCO greater control over generation scheduling and reduces the frequency of expensive regional purchases during favourable solar conditions.

The 200MW rating represents peak daytime output under suitable conditions. Actual generation changes with sunlight, seasonal conditions and panel performance. Zambia will continue to depend on hydropower, thermal generation, imports, regional trading and future storage capacity to maintain reliable supply across the full day.

Transmission infrastructure now determines how much economic value Zambia extracts from the expanding generation base. Congested lines, weak substations and distribution failures reduce the electricity reaching mines, manufacturers and households. Rising power flows also increase the requirement for maintenance, network reinforcement and stronger regional interconnections.

The Chisamba structure carries direct relevance for Zimbabwe and other Southern African markets. Large mines, cement producers, manufacturers and agricultural processors possess predictable electricity demand capable of supporting grid connected generation.

Zimbabwean mining companies increasingly invest in solar plants for their own operations, with many projects contributing limited electricity to the national network. Zambia’s model creates a route for corporate demand to finance generation while the utility retains transmission responsibility and a regional trader manages intermittency and supply risk.

Replication depends on bankable tariffs, creditworthy customers, enforceable contracts and reliable grid access. Industrial users need electricity prices that protect operating margins. Lenders need predictable debt service. Utilities need network charges capable of funding maintenance and expansion.

Projects tied heavily to one mining customer also carry concentration risk. Commodity price weakness, production disruptions or financial pressure at the mine could affect electricity demand and project cash flows. Traders and lenders need alternative buyers, contractual protections and access to regional electricity markets.

Chisamba moves Zambia further toward an electricity model where industrial demand supports national generation investment. Phase I established the financing architecture through Stanbic debt, GreenCo offtake, First Quantum demand and ZESCO grid access. Phase II doubles the site’s capacity and demonstrates that repeat construction can lower costs and shorten delivery timelines.

 Equity Axis News