GETFit Zambia shows us how not to conduct a solar PV tender in Africa

GET Fit provided an update last week announcing that developers remain committed to implementing projects and have agreed to extend bid validity, while GET FiT Secretariat and KfW remain engaged in onboarding potential lenders. The Secretariat also explored alternative offtake solutions with investors and financiers. However, merchant risk, the energy tariff structure, and at the time, there were no credit-worthy off-takers with a proven track record in Zambia to off-take power from the projects. Furthermore, it was considered not financially beneficial for ZESCO and its consumers to purchase power at a margin instead of benefiting from the low cost achieved through the tender.

Related news: GET-Fit Zambia responds to solar tender failure allegations 

This was especially important as the programme objectives were to ensure that broader public benefits from low-cost power procured through the programme. Therefore, stakeholders have agreed that ZESCO will remain the off-taker for the GET FiT projects, especially as the programme design and deployment of grants aim to ensure a low costs tariff outcome that will benefit the broader ZESCO customer base.

Link to their full report: GETFiTZambia_AnnualUpdatel2022indd

Author: Bryan Groenendaal

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