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Zambian Utility Signs PPA for 26-MW Plant, Aiming to Curb Hydropower Reliance

Zambian Utility Signs PPA for 26-MW Plant, Aiming to Curb Hydropower Reliance
Wednesday, 14 January 2026 12:33
  • Kiyona, Bluesun to build 26MW solar plant in Zambia

  • Project cost $22-26M; operations expected before year-end

  • Zambia boosts solar to cut hydropower reliance, climate risks

Kiyona Energy has signed a power purchase agreement with Bluesun Solar Zambia Ltd to develop a 26-megawatt solar photovoltaic plant, the company said on Monday, Jan. 12.

The project is expected to cost $22 million to $26 million. Construction is expected to start soon, with commercial operations due before year-end. The companies did not disclose the financing structure or funding source.

Kiyona Energy is a wholly owned subsidiary of ZESCO, Zambia’s state power utility, and was created to develop renewable energy projects, including solar, wind and biomass.

The company plans to develop up to 302 megawatts of renewable energy projects by 2028, as Zambia accelerates investment in solar power. Since 2025, several utility-scale projects have been launched or have come online across multiple provinces, led by ZESCO, its subsidiaries and independent power producers. The government had set a target of 1,000 megawatts of solar power for last year.

The shift is intended to improve grid reliability and reduce exposure to climate risks affecting hydropower output. Hydroelectricity accounted for about 90% of Zambia’s electricity generation in 2023, according to the International Energy Agency.

Abdoullah Diop

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