Mulema-Sampa Solar Mini-Grid Project

Mulema-Sampa Solar Mini-Grid (SMG) Project involves the establishment of a SMG in Mulema-Sampa Village in Chambeshi ward of Mungwi District, Northern Province. This will involve the installation of a minimum 42.83kWp solar power generating system and the construction of a total of 2km of 400V overhead line. The residents of this community 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. There is an estimated 500 households, a primary school and other institutions that can be electrified using a combination of SHS and SMG. The project is envisioned 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. The Project is profitable with positive income from start year to its end life with a profit of K149,187.44 ($8, 288.19) at K18 exchange rate in its first year of operation. This Project is also economically viable at the respective tariffs with ENPV of K8.3m ($461,111.1), EIRR of 24% and with a life span of 20years. The Project is open for FDI through a majority stake and the Rural Electrification Authority (REA) will facilitate the project. Estimated cost for the project is $557,121.22, consisting of the generation facility at $293,608.23, distribution network and metering $129,600, and installation works and other costs at $133,912.99 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 in Zambia.

High