Expanding Renewable Energy in Zambia: ACES Renewables Advances 31 MW Solar PV Project

As Zambia works to strengthen its electricity supply and diversify its generation mix, solar energy has an increasingly important role to play in building a more resilient energy system.

ACES Renewables is advancing the development of a utility-scale solar photovoltaic (PV) project in Kazungula, Zambia. The planned facility will have approximately 37.2 MWp of installed DC capacity and 31 MWac of AC capacity, adding new renewable generation capacity to Zambia's electricity system.

Developed through a partnership between ACES Renewables and a local partner, the project combines renewable energy development and financing expertise with local participation.

The project represents another step in ACES Renewables' expansion across Africa and demonstrates how strategic local partnerships can support the development of bankable renewable energy projects that respond to regional energy requirements.

Zambia Needs Greater Energy Diversification

Zambia's electricity system has historically relied heavily on hydropower. While hydropower remains an important renewable energy resource, its output can be affected by drought conditions and variations in rainfall.

Diversifying the generation mix can therefore help strengthen the resilience of the country's electricity supply.

The Kazungula Solar PV Project is intended to provide additional daytime electricity for Zambia's industrial, mining, commercial and institutional sectors. By complementing existing hydropower generation with solar PV, the project can contribute to a more diversified electricity system while supporting productive economic activity.

Once operational, the facility is expected to add 31 MWac of solar generation capacity to Zambia's electricity system.

Kazungula Was Selected for the Solar Project

Kazungula provides several important characteristics required for utility-scale solar development, including a strong solar resource, access to land secured through the university partnership and proximity to potential grid connection infrastructure.

The project lease provides the basis for site access and development, while the project's final layout and infrastructure will be determined through detailed engineering and the applicable regulatory approval processes.

The current design concept is based on a fixed-tilt solar PV system comprising approximately 62,062 600 Wp solar modules.

Current planning assumptions provide for:

• Approximately 37.2 MWp DC / 31 MWac capacity
• Approximately 62,062 × 600 Wp PV modules
• 31 × 1 MW central inverters
• A fixed-tilt mounting system
• Approximately 65 GWh of electricity generation during the first year of operation

The financial model currently assumes approximately 65.2 GWh of first-year generation. Final electricity production will, however, depend on the independent energy-yield assessment, solar conditions, plant availability, grid constraints and equipment performance.

Connecting the Project to Zambia's Electricity Network

The solar facility is intended to connect to the ZESCO network, allowing the electricity generated by the project to be delivered through Zambia's existing electricity infrastructure.

The preferred arrangement identified through grid studies is a 220 kV loop-in loop-out connection to the existing Sesheke–Victoria Falls transmission line.

This configuration is expected to require a dedicated project connection substation, transformation and line infrastructure, together with the necessary protection, metering, communications and control systems.

The final grid connection configuration and operating requirements remain subject to ZESCO's approval and the conclusion of the relevant connection agreements.

Building the Commercial Foundation for the Project

An important part of developing a utility-scale renewable energy project is establishing a commercially viable route to market for the electricity it will generate.

VFU-CEL has signed a term sheet with a Zambian energy trader for the proposed purchase of electricity from the project. The trader's identity and detailed commercial terms remain confidential while definitive agreements are being negotiated.

Under the proposed structure, the trader would purchase the output of the full 31 MWac plant and could subsequently supply that electricity to multiple customers through agreed network arrangements.

Importantly, the 31 MWac figure represents the plant's rated AC capacity and does not mean that the facility will continuously deliver 31 MW. Solar generation naturally varies according to available solar irradiance and operating conditions.

The term sheet represents an important commercial milestone because it establishes the proposed framework for the electricity sale and provides a basis for negotiating the definitive Power Purchase Agreement (PPA).

It also supports discussions with potential lenders and investors as the project progresses towards financial close.

Progressing Towards Financial Close and Construction

Development work on the project is well advanced, although several important regulatory, commercial and technical milestones still need to be completed.

Topographic surveys, geotechnical investigations and stakeholder consultation work have been completed. Environmental and grid studies have also been prepared, while the geohydrological report is being finalised.

The project team reports that it has received the Zambia Development Agency certificate, WARMA water-use permit and Ministry of Energy feasibility approval letter, together with Forestry no-objection and vegetation-assessment correspondence.

Key outstanding requirements include ZEMA's environmental approval decision and ZESCO's final grid approval and connection arrangements. An Energy Regulation Board construction permit will also be required before construction, with an electricity generation licence required before operations commence.

The current programme targets financial close in Q4 2026, followed by commercial operation in Q3 2027.

These dates remain dependent on the completion of outstanding regulatory approvals, finalisation of the offtake and financing agreements, procurement and completion of the required grid connection works.

Supporting Local Employment and Economic Development

Beyond additional electricity generation, the Kazungula project is expected to create employment and economic opportunities within Zambia.

Current planning estimates anticipate approximately 200 jobs during construction and approximately 20 jobs during operation.

Participation targets during construction include 100 young people and 50 women, while operational targets include five young people and five women. These groups may overlap within the overall employment numbers, and final staffing levels will depend on the eventual construction and operating arrangements.

The project is also expected to create opportunities for local suppliers and service providers.

Through the partnership it also provides a platform for skills transfer, community education and practical learning opportunities linked to renewable energy development.

Specific community initiatives and beneficiaries will be developed in consultation with the relevant stakeholders as the project progresses.

Supporting Zambia's Energy Transition

Solar PV offers Zambia an opportunity to expand electricity generation while reducing the generation mix's exposure to hydrological conditions.

Unlike hydropower, solar PV has limited dependence on water for electricity generation during operation. Adding solar capacity can therefore complement Zambia's existing hydropower resources and contribute to greater diversification of the country's electricity supply.

The project is also expected to deliver carbon-emission benefits by generating electricity without burning fossil fuels during operation.

However, a verified annual CO₂ emissions-reduction figure has not yet been established for the project. Any published emissions or fossil-fuel savings will need to be calculated using the project's final net energy yield and an appropriate documented emissions baseline.

This ensures that environmental claims associated with the project are based on verified project data rather than preliminary estimates.

Strengthening ACES Renewables' African Project Pipeline

The Kazungula Solar PV Project forms part of ACES Renewables' wider renewable energy development pipeline across Africa, alongside developments such as the Cullinan and Ravenna solar projects in South Africa.

The Zambia development is particularly significant because it combines local participation, utility-scale renewable energy development, grid integration, commercial offtake and project financing within a single project structure.

Successful delivery would demonstrate ACES Renewables' ability to progress a utility-scale renewable energy project from development and financing through construction and ultimately commercial operation in Zambia.

It would also strengthen the company's experience in coordinating the multiple components required to deliver independent power projects across African markets, including local partnerships, technical design, permitting, grid integration, offtake arrangements and funding.

For Zambia, the project represents additional renewable electricity capacity and greater diversification of the national generation mix. For ACES Renewables, it represents another important step towards building a scalable portfolio of renewable energy assets across the continent.

‍ACES Renewables is a premier provider of renewable energy solutions across Africa. With over 17 years of experience, we are driving the continent's energy transition through innovative and sustainable clean energy solutions.Our expertise spans end-to-end project execution, including engineering, procurement and construction (EPC), energy optimisation and advanced storage solutions. With a proven track record and strong local partnerships, ACES Renewables delivers scalable projects that address Africa's growing energy needs while promoting environmental sustainability and economic growth.By consistently demonstrating the success and impact of our projects, ACES Renewables is attracting forward-thinking investors eager to participate in Africa's energy future, creating jobs, uplifting local communities, improving health and cleaning the environment. Our strategic vision and commitment to excellence position us as a trusted partner for those seeking to contribute to a cleaner, greener and more prosperous continent.

Frequently Asked Questions About the ACES Renewables Zambia Solar PV Project

1. What is the ACES Renewables Kazungula Solar PV Project?

The Kazungula Solar PV Project is a planned utility-scale renewable energy project in Zambia being developed through a local partnership. The facility is planned to have approximately 37.2 MWp of DC capacity and 31 MWac of AC capacity.

2. How much electricity will the Kazungula Solar PV Project generate?

The current planning estimate is approximately 65 GWh during the first year of operation, with 65.2 GWh currently assumed in the financial model. Final generation will depend on the independent energy-yield assessment, solar conditions, plant availability, grid constraints and equipment performance.

3. How will the solar project connect to the Zambian electricity grid?

The project is intended to connect to the ZESCO network. The preferred arrangement identified in grid studies is a 220 kV loop-in loop-out connection to the existing Sesheke–Victoria Falls transmission line. The final connection arrangement remains subject to ZESCO approval and the relevant connection agreements.

4. How will the project support Zambia's energy security?

The project will add solar generation capacity to Zambia's electricity system, helping diversify a generation mix that has significant hydropower exposure. Solar can complement hydropower by providing additional daytime electricity while having limited dependence on water for electricity generation during operation.

5. What are the environmental benefits of the project?

Solar PV produces electricity without burning fuel during operation and can contribute to reducing the carbon intensity of electricity supply. A verified annual CO₂ reduction figure has not yet been established for the Kazungula project and will require the final net energy yield and an appropriate documented emissions baseline before publication.

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