Kapolyo Solar Mini-Grid Project

Kapolyo Solar Mini-Grid Project involves the establishment of a Solar Mini-Grid in Kapolyo Village of Chambeshi ward in Mungwi District, Northern Province. This will involve the installation of a minimum 40.19kWp solar power generating system and the construction of at least 2km of 400V overhead line.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. This project envisions to electrify an estimated 315 households, a school and other institutions using a combination of SHS and SMG. The project also intends to promote the use of the EaaS business model in the billing system of off-grid solutions through the use of Pay as you Go (PAYGO) approach. This Project is profitable with positive income from start year to its end life with a profit of K139, 811.72 ($ 7, 767.32) at K18 exchange rate in its first year of operation. The Project is also economically viable with ENPV of K7.8 m ($ 433, 333.33), EIRR of 24% and with a life span of 20 years. The Project is open for FDI through a majority stake and the Rural Electrification Authority (REA) will facilitate the project. Estimated cost for this project is $ 458, 346.52, consisting of the generation facility at $ 210, 199.04, distribution network and metering $ 122, 400, and installation works and other costs at $ 125,747.48 respectively. Alternatively, REA could develop the sites and engage a private company through a management contract to oversee operations and maintenance of the project sites. The project is also viable with a capital subsidy of 100% from REA and 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.

High