Chibanga solar mini-grid project

Chibanga solar mini-grid project involves an establishment of an SMG in Chibanga, Chibanga RGC is located in Muswishi Ward of Mkushi South Constituency (GPS: 13.916082°, 29.812013°) in Mkushi District, Central Province. Chibanga load centre is located about 14km from the national grid at Fiwila Mission. The residents of this community mainly depend on firewood and charcoal as the main sources of energy for cooking and heating, while solar and other batteries are used for lighting and entertainment . The project is open for FDI through a majority stake, the estimated project cost would sit at around US$142,900.50. The project under consideration was found to be economically viable at the respective tariffs with ENPV of K2.6 million (US$144,444.44) and EIRR of 25%. REA could develop the sites and engage a private company through a management contract to oversee operations and maintenance of the project site. The project is viable with a capital subsidy of 100% from REA or Cooperating partners. Rural Electrification Act No. 20 of 2003, mandates the Authority to design and offer, on a competitive basis, to developers and/or operators, smart subsidies for capital costs on projects that are designed to supply energy for development of rural areas. The issuance of these subsidies is guided by the Framework for Managing Capital Smart Subsidies in Zambia and The Guidelines for Financing Rural Electrification Projects in Zambia.

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