Zambia’s state-owned power utility, ZESCO, has signed a landmark power purchase agreement to develop a 500MW solar power project in partnership with South Korean firm KS Eco Solutions Holdings.
According to the Ministry of Energy, the project, which includes battery storage, marks a significant milestone in Zambia’s efforts to diversify its energy mix, strengthen energy security and attract foreign direct investment into the renewable energy sector.
The agreement was signed by Justin Loongo, managing director of ZESCO, and Ma Hong-il, CEO of KS Eco Solutions Holdings. Estimated to be valued between $700 and $900 million, the infrastructure project will be developed in 10 phases of 50MW each.
The pact comes as the Zambian government stresses that increased energy generation is critical to supporting the growing economy.
The Southern African nation currently generates about 4,000MW of electricity and aims for 10,000MW to meet future demand and support the government’s goal of producing three million tonnes of copper annually by 2030.
Technical teams from both countries will oversee installation using South Korean solar photovoltaic technology, with the Zambian government providing the required land.
To secure the necessary capital, the Ministry of Information and Media has identified major institutions such as the Export-Import Bank of Korea and the Korea Development Bank as potential financing partners.
Korean representatives described the partnership as a defining moment that will strengthen bilateral relations between Zambia and South Korea.
Furthermore, the project will enhance grid reliability and support sustainable power supply while boosting renewable energy generation and economic growth.
“The Ministry of Energy commends the initiative by ZESCO and KS Eco Solutions as it directly reflects government policy encouraging private sector involvement in the energy sector through recent reforms,” the government said.
Share