Vundoka Solar Mini-Grid Project

Vundoka Solar Mini-Grid Project involves the establishment of a Solar Mini-Grid in Malamba Ward of Senga Hill District, Northern Province. This will involve the installation of a minimum 8.53kWp solar power generating system and the construction of a total of 1.5km 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. There is an estimated 300 households, a primary school and other social institutions that can be electrified within this area with a combination of SHS and SMG. The Project is profitable with positive income from start year to its end life with a profit $ 2,239.2 in its first year of operation. This Project is also economically viable at the respective tariffs with ENPV of K1.5m ($18, 333.3) at exchange rate of K18 and EIRR of 23% 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 so as to enable private sector investment within the rural electrification space. Estimated cost for this project is USD93, 674.01 consisting of the generation facility at $ 44, 627.28, distribution network and metering $ 22, 680.00, and installation works and other costs at $ 26,366.73. A Private investor(s) is required to provide investment resources in cash and in kind. 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.

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