The latest GET FiT tender in Zambia has awarded 120MW of capacity and set a record low price for Sub-Saharan Africa.
The tender had originally been for 100MW but was extended, owing to the quality of the received bids.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The lowest bid of 3.999 Us cents per kWh is the first under the four-cent mark. The weighted average price across all projects was 4.41 cents.
The scheme is run by Zambia’s Department of Energy and the German development bank KfW.
“What has made this such a competitive outcome is the bankable standardised transaction agreements, the effective tender implementation and the steadfast commitment of the Government of Zambia and [state power company] ZESCO,” said Marco Freitag of KFW Development Bank.
The six winning bids were awarded in pairs to three successful bidders, whittled down from 23 consortia.
- Two Proposals of Joint Venture Building Energy & Pele Energy – Bulemu East and West–20MWac each at USDc 3.999/kWhac.
- Two Proposals of Joint Venture Globeleq & Aurora Power Solutions – Aurora Sola One and Two – 20MWac each at USDc 4.52/kWhac.
- Two Proposals of Joint Venture of InnoVent and CEC – Garneton North and South Solar20MWac each at USDc 4.80/kWhac.
“It is important to recognise that these tariff results represent a truly competitive outcome. Not only were developers required to find and acquire their own suitable sites and pay for shallow grid connection, but GET FiT Zambia has offered no form of grant financing, nor has it arranged for concessional finance,” said Ryan Anderson, the tender agent team leader.
