- The government backed agreement with Zesco Limited underpins up to US dollars 90 million in contracted gross revenues.
- The royalty based structure delivers long term recurring cash flows and supports regional energy security.
- The project strengthens Zambia’s utility scale solar capacity and opens room for future expansion.
Canada based Stardust Solar Energy Inc has secured a 20 year power purchase agreement in Zambia to support the development of a 30 megawatt solar project, marking a major milestone in the company’s expansion across African energy markets.
The agreement was signed through the company’s local subsidiary Stardust Solar Zambia with Zesco Limited, Zambia’s state owned electricity utility responsible for most of the country’s power transmission and distribution. Under the contract, electricity generated by the solar plant will be sold to the Government of Zambia at a fixed tariff of seven US cents per kilowatt hour for a period of 20 years.
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Based on current demand projections, the project is expected to generate between 60 million and 90 million US dollars in gross revenue over the life of the agreement. Stardust Solar will earn a 50 percent royalty on energy revenues, after approved operating costs, once project financing has been repaid. The structure is designed to deliver high margin recurring income over multiple decades.
The company will fund development and construction and provide full engineering and technical oversight. A loan and joint venture agreement covering these terms was fully executed on January 12, 2026.
The 30 megawatt solar facility will comprise around 45,000 high efficiency solar panels. Initial commercial operation is expected later this year following completion of the first 2 megawatts of capacity. The project is located on 50 hectares of secured land, allowing for future expansion beyond the current agreement.
Stardust Solar’s senior management team is expected to visit Zambia in February to meet with government and utility stakeholders and to participate in the project’s official groundbreaking.
The development aligns with Zambia’s push to attract long term private investment into renewable energy infrastructure, strengthen energy security and accelerate the transition to low carbon power generation. For Stardust Solar, the agreement supports its strategy of building a diversified portfolio of long duration solar assets across global growth markets, with Africa playing an increasingly central role.
Author: Bryan Groenendaal
For enquiries on the African continent, contact SolaX Power South Africa: kendall.xu@solaxpower.com
