Zambian independent power producer PSI (Power Systems Investment and Construction) has signed an engineering, procurement, and construction (EPC) agreement with PowerChina, a subsidiary of Sinohydro, for the development of the large-scale Nambala solar power project in Zambia. The project is located in the Mumbwa district of the country’s Central Province and is expected to become one of the region’s major renewable energy developments.
The Nambala project will include a 290 MWp (200 MWac) solar photovoltaic power plant along with a 50 MW/250 MWh battery energy storage system (BESS). The storage facility is expected to improve grid stability and support the integration of renewable energy into the regional electricity network. Once completed, the project is estimated to generate around 630 GWh of electricity annually, contributing significantly to Zambia’s clean energy supply.
The overall investment value of the independent power producer (IPP) project stands at approximately $235 million. PSI plans to achieve financial close by the end of August 2026 through debt financing from commercial banks. According to the company, term sheets have already been secured from two lenders. While financial details and equity participation remain undisclosed, PSI stated that it is open to welcoming additional equity investors for the Nambala project as well as its future renewable energy pipeline.
The company also confirmed that it will directly manage the operations and maintenance activities of the solar and storage facility after commissioning.
From a regulatory perspective, the project has already obtained approval from Zambia’s Energy Regulation Board (ERB). In addition, PSI has secured a grid connection agreement with Zambia’s state-owned utility, Zesco. However, Zesco will not serve as the buyer of the generated electricity. Instead, power from the project will be sold to Enpower, an active trader within the Southern African Power Pool (SAPP), under a US dollar-denominated power purchase agreement that includes an annual escalation mechanism.
Construction of the Nambala project is expected to take around 18 months. Commercial operations are currently targeted to begin in the fourth quarter of 2027, marking another important step in Zambia’s renewable energy expansion plans.
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