US$1.3m grant for energy project signed
A US$1.3 million grant to finance feasibility studies for a hybrid, wind, solar and storage project on the Copperbelt has been signed between the United States Trade and Development Agency (USTDA) and Upepo Energy Zambia.
The study will assist to determine the technical, economic and environmental feasibility for the project.
Speaking during the signing ceremony in Lusaka last week, United States ambassador to Zambia, Daniel Foote, said the project would be generating 150 megawatts of electricity once completed.
Mr Foote said Zambia’s goal of access to power by 2030 could only be achieved by harnessing private sector resources available within the country.
“In Zambia and the region, there is tremendous need to generate new power, improve access to existing power, and diversify the energy mix.
“Government and donorfunded projects alone cannot achieve Zambia’s goal of universal access to electricity. We simply do not have enough resources,” Mr Foot said.
Mr Foote said electricity was the lifeblood of economic development and essential to creating economic opportunities.
Studies, he said, showed that the cost of producing electricity was far less than the economic cost of not having it.
And Upepo Chief Development Officer, Dean Baumgardner, said the company would use latest technology in wind, solar and battery storage to meet the rapidly growing energy needs in Zambia.
Mr Baumgardner said “long term success will only be achieved if the project provides real and ongoing benefits to the local communities that host the project as well as delivering cost effective renewable energy.”
USTDA acting deputy director, Todd Abrajano, said the company was also funding feasibility studies for utility scale and wind projects in Pensulo and Mpika.
Mr Abrajano said the project would be the first commercial geothermal power plant and technical support for the design of Zambia-Mozambique interconnector.
At the same function, Ministry of Energy director, Arnold Simwaba, said the project would create 300 jobs at construction and 20 more jobs going forward.
This project, Mr Mwaba said, was significant to Zambia as it would be among the first solar and wind hybrid project in the country.
He said increased use of renewable energy resources would act as a catalyst for enhancing rural development
“As most of you may be aware, Zambia is endowed with a wide range of renewable energy resources, however, despite the huge endorsement of natural resources, our national electrification rate is still low at 31.4 percent,” he said