Lifwambula solar mini-grid project

Lifwambula Solar mini-grid project involves an establishment of an SMG in Lifwambula area which is located in chief Chamuka of Chisamba District in Central Province (GPS: - 14.76°, 28.57°). 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 area is located about 12km from the national grid. The total project capital expenditure was estimated at US$106,095.78 and the project is open for FDI through Majority stake. The project under consideration was found to be economically viable at the respective tariffs with ENPV of ZMW2.1 million (US$116,666.66)and an EIRR of 24%. 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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