Mwasha Mini-Hydro Power Project

Mwasha Mini Hydro Power Project involves the establishment of a mini-hydro power plant at Mwasha Falls in Mushika Village of Kaputa District in Northern Province with a primary business model of supplying electricity to the Central Business District. The head of waterfalls at Mwasha falls is 7m with an estimated generating capacity of 600KW -1MW of electricity. This implies a break down supply of 300KW of electricity to Nsama central Business District (CBD), 100KW to the surrounding areas and the remaining 702KW to Zambia Electricity Supply Corporation Limited (ZESCO) who are willing to be an offtake of the Power Plant. Additionally, this project envisions to use the EaaS business Model in billing system using Pay as you Go (PAYGO) Approach. Nsama District has an estimated population of 127,604 based on the 2010 National Census Report. This Project is profitable with estimated annual profits of USD 67,736.7 and with a life span of 35-40 years. The Project is open for FDI through a majority stake and the Rural Electrification Authority (REA) will facilitate the project so as to enable private sector investment within the rural electrification space. Estimated cost for this project is USD3.9million inclusive of the vending and communication systems as well as the associated substation. The National Power Utility Company ZESCO should be consulted during full feasibility stage as available information from stakeholders within the district indicate that the company started works on the distribution network. 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 50% 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.

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