NEWSLETTER 1ST QUARTER 2019

INTRODUCING GET FiT ZAMBIA

The Zambian Renewable Energy Feed-in Tariff (REFiT) was adopted by the Cabinet and formally launched by the Ministry of Energy in 2017. In December 2017, GET FiT Zambia became the official implementation Programme for the REFiT Strategy. The Programme aims to improve the investment framework for Renewable Energy through diversifying energy resources and promoting private sector involvement in small- and medium-sized renewable energy projects. Specifically, GET FiT aims at promoting project with a maximum size of up to 20MW adding up to a total of 200MW over a period of 3 to 5 years.

This will be achieved through the successful application of the Programme's five key components, each of which seeks to address specific barriers to small-scale renewable energy development that prevail in Zambia.

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SOLAR PV TENDER

SOLAR – GET FIT ZAMBIA ROUND 1

In Round one (1) of the program, GET FiT Zambia implements a Solar PV tender for up to 100MW with a maximum individual project size of 20MW.

In line with the REFiT Strategy, the Solar PV tender is a reverse bid auction with ZESCO as the off-taker. The final selection of projects will be based on price competition.

Developers were free to select project sites and were permitted to submit two proposals for a total of up to 40 MW. The Request for Qualification (RfQ) procedure was concluded in June 2018 with selection of ten shortlisted developers or consortia. On 31 August 2018, the Request for Proposal (RfP) was issued with a deadline for submission of proposals by 29 November 2018. A total of 15 proposals were received from 8 of the 10 shortlisted developers and consortia.

In January 2019, the Tender Agent (Multiconsult) together with counterparts of the Government of Zambia undertook detailed appraisals of the proposed projects. The first Investment Committee (IC) meeting was held on 22 February 2019. Successful bidders will be announced after the second IC meeting in March / April 2019.

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SMALL HYDRO TENDER

HYDRO – GET FIT ZAMBIA ROUND 2

Round two (2) of the GET FiT Zambia program is the 100 MW GET FiT Small Hydro Tender. In line with the REFiT Strategy, this tender will support the development of small hydro projects with up to 20 MW of installed capacity.

Renewable Energy Feed-in Tarrifs (REFiTs) to be published by the Energy Regulation Board (ERB) will be the base tariff used in Power Purchase Agreements (PPA) for projects supported under the GET FiT Small Hydro Tender. GET FiT Zambia may provide a performance-based top up payment to successful developers.

The tender process includes a Prequalification Procedure (PQ) followed by up to three successive Requests for Proposal (RfP) rounds to award the full 100 MW of capacity allocated to this tender. The tender was officially launched on 07 January 2017 and applications were accepted until the submission deadline on 13 February 2019.

The results of the pre-qualification process will be announced in March 2019. Prequalified developers will then be invited to submit applications for Feasibility Study Rights for their preferred project sites, which will be issued through the Ministry of Energy. The eligibility criteria for projects that may participate in the RfP will be published simultaneously. The RfP rounds are foreseen to be launched between 2019 and 2020.

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ENVIRONMENTAL AND SOCIAL COMPLIANCE

GET FiT places strong emphasis on environmental and social sustainability and compliance of projects with IFC Performance Standards. The experience from GET FiT Uganda has shown that early interventions to build respective capacity has clear beneficial impact in supporting developers to achieve compliance. Experienced benefits include reduced project implementation timelines and improved prospects for reaching financial close.

Developer workshops on Environmental and Social compliance

On 7 and 8 of November 2018, more than 100 participants attended a workshop hosted by the GET FiT Secretariat on compliance to IFC Performance Standards. The positive turnout to this event underscores a high level of awareness around this topic and the significant interest of developers in the GET FiT and its capacity building programs.

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2019 OUTLOOK

GET FiT Zambia foresees a busy year with high level of activity including the following highlights

Announcement of the successful bidders for the Solar PV tender
Announcement of prequalified firms for the Small Hydro tender
Launch of Feasibility Study Rights process for small hydro projects thought the Ministry of Energy

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GET FIT ZAMBIA

...is the Government of the Republic of Zambia's programme to facilitate private sector investment in small- and medium-scale Renewable Energy Independent Power Projects (IPPs) in Zambia. The programme is a partnership between the Department of Energy and the German Development Bank, KfW, and is implemented by the GET FiT Secretariat.

GET FiT Zambia was officially launched in 7th February 2018.

KEY FACTS

Implementing Agency:
Ministry of Energy (Department of Energy)
Main financing institution:
KfW (Germany)
Target:
100 MW Solar PV and 100 MW small hydropower capacity
Timeline:
Programme period is from 2018-2024

Contact: GET FiT Secretariat
c/o Multiconsult Norge AS
Energy Regulatory Board Main building, 1st Floor

Ministry of Energy | Office for Promoting Private Power Investment | GET FiT Zambia | KfW

Copyright © 2019 Multiconsult Norge AS Zambia, All rights reserved.

Our mailing address is:
Multiconsult Zambia, Energy Regulation Board (ERB) Building, Room 1010, Plot 9330 Off Alick Nkhata Road

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GET FiT Zambia · Multiconsult Zambia · Energy Regulation Board Office Room 101, Off Alick Nkhata · Lusaka 10101 · Zambia