Katetaula solar home system project

Katetaula solar home system project involves an establishment of a standalone Solar PV System in Katetaula village located in Mboroma chiefdom in Muswishi Ward of Mukushi South Constituency, Central Province. 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 village is located about 120km from the national grid. With a target of supplying 100 households with SHS and 1 public institution with HDS, the capital cost required was estimated at US$26,500 and the project is open for FDI through majority stake. The project was found to be economically viable at the respective tariffs with ENPV of ZMW27.7 thousand (US$1,538.89) for SHS and K15.34 thousand (US$852.22). Alternatively, 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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