The Zambia Power Supply Company recently signed a memorandum of understanding and a joint development agreement with the UAE renewable energy developer Masdar, planning to invest US$2 billion to develop photovoltaic projects in Zambia. The two companies will form a joint venture to deploy several photovoltaic projects with a total installed capacity of 2GW in Zambia over the next few years.

Once operational, these photovoltaic systems are expected to play an important role in ensuring uninterrupted power supply in Zambia, which currently has a power supply of only 3.5GW. The joint venture company started construction of these photovoltaic projects, which will be built in phases at a scale of 500MW. The signing of the agreement marks another major investment by Masdar in the clean energy sector. The company recently announced a series of investments in renewable energy projects around the world.

Zambian President Hakainde Hichilema said in a post on social media that with the increase in electricity supply, we are confident of faster economic development and more job opportunities. This is not a loan, but a capital injection.

The Zambia Electricity Supply Corporation said the development provided a ray of hope for Zambia to wean itself off its overreliance on hydropower. With less rainfall due to climate change, the country's seasonal hydroelectric facilities cannot provide enough power to meet demand. The company expects these photovoltaic projects will help improve power security, thereby bringing more investment and economic growth to Zambia.

The Zambia Electricity Supply Company last signed a similar agreement in 2020, when the company signed three contracts with the China Power Construction Corporation for an investment of US$548 million to develop a 600MW grid-connected photovoltaic project in Zambia.

According to a report released early last year by the International Renewable Energy Agency in partnership with the African Development Bank, a revised policy framework centered on renewable energy could help address many of the social, economic, health and environmental challenges facing Africa.Editor/XingWentao