Scaling Solar delivers 6 cent solar in Zambia
Just 9 months after engaging World Bank Group program, first auctions yield new regional benchmark for 25-year power
Financial bids from seven leading renewable energy developers were opened today in Lusaka, just nine months after the Government of Zambia engaged Scaling Solar to design and deliver a solar IPP tender. Against a backdrop of load-shedding, macro-economic headwinds and a presidential election, the World Bank Group program attracted global industry heavyweights to compete Zambia's 2x 50MW projects -- and the results have set a new bar.
The tender initially attracted 48 developers, of whom 11 were prequalified for the subsequent bidding process. In the end seven bidders submitted final proposals as follows:
- Access / Eren Zambia 1
- EDF Energies Nouvelles
- Enel Green Power S.p.A.
- Mulilo Zambia PV1 Consortium
- NEOEN S.A.S. / First Solar Inc.
- Shanghai Electric Power / AVIC
The winning bidders will be selected on the basis of the lowest proposed tariff. Provisional results indicate that NEOEN S.A.S. / First Solar Inc. and Enel Green Power S.p.A. will win the two projects at tariffs of US¢6.02/kWh and US¢7.84/kWh respectively. However, this remains subject to completion of all necessary procurement formalities over the coming days. The tariffs are fixed (non-indexed) for the 25-year contract period and a US¢6.02/kWh tariff equates to an average of US¢4.7/kWh in real terms.
More details including the official results from Zambia and information about upcoming pre-qualification in Senegal to follow in the coming days and weeks.