- Global Energy Alliance, REA and partners have launched a pilot programme to electrify rural communities using a blended finance model.
- The initiative combines a 50% capital grant with a five year operating subsidy to support affordable electricity tariffs and attract private investment.
- Distributed renewable energy developers have until 24 July 2026 to submit expressions of interest for the pilot.
The Global Energy Alliance for People and Planet, working with Zambia’s Rural Electrification Authority (REA), has invited distributed renewable energy developers to participate in a pilot programme designed to accelerate universal rural electrification through a new blended finance model.
The Universal Access Clusters model is being implemented in partnership with Sustainable Energy for All (SEforALL) and supported by The Rockefeller Foundation. The initiative aims to demonstrate a commercially sustainable approach to delivering affordable electricity to entire rural communities while supporting productive economic activity.
Unlike conventional results based financing programmes that typically focus on commercially attractive customers, the Universal Access Clusters model seeks to electrify every household and business within designated geographic areas.
The pilot supports Zambia’s Rural Electrification Masterplan 2.0, the Mission 300 initiative and the government’s commitment to provide decentralised renewable energy to 1,000 communities.
Under the financing structure, developers will contribute 50% of project capital expenditure through equity, while the remaining 50% will be funded through grants provided by development partners and existing electricity access programmes.
To ensure affordable electricity tariffs, participating developers will also receive an operating subsidy over five years. The subsidy will bridge the gap between regulated consumer tariffs and the actual cost of supplying electricity and will be paid twice each year through an escrow mechanism linked to agreed service levels.
The programme is technology neutral, allowing developers to deploy mini grids, solar home systems or other distributed renewable energy technologies that meet minimum service standards.
The first phase will focus on preselected rural clusters ranging from 1,000 to 10,000 households. Communities in Mpika, Nchelenge and Petauke have been identified for the pilot, with the objective of providing electricity to all households and businesses within each cluster.
A central feature of the programme is its emphasis on productive use of energy to strengthen project economics and stimulate rural development.
The selected sites have been assessed for agricultural production, commercial activity and existing anchor loads, including agro processing facilities, mobile telecommunications towers, healthcare facilities and schools.
Expected productive electricity demand includes grain mills, rice dehullers, irrigation systems, welding workshops and refrigerated retail businesses. These larger electricity consumers are expected to increase demand, improve project revenues and reduce operating subsidy requirements over time.
Electricity tariffs will be determined by REA and the Energy Regulation Board to ensure affordability for households while remaining competitive for productive users. Site specific feasibility studies will determine project capital and operating costs.
The programme also anticipates dedicated financing to encourage productive energy use through equipment financing and demand stimulation for agro processors and other rural businesses.
The Global Energy Alliance expects to shortlist up to two distributed renewable energy developers. Successful applicants will participate in collaborative site selection and negotiations covering project implementation and grant funding arrangements.
The shortlisting process will not provide exclusive rights to any project site or guarantee the award of a contract.
Applicants must demonstrate an active development pipeline in Zambia, experience operating distributed renewable energy systems at portfolio scale, the ability to provide approximately 50% of project equity and a commitment to sharing operational, financial and customer data with programme partners to support evaluation of the pilot.
Expressions of interest must include details of the company’s operating history, Zambian project portfolio, existing distributed renewable energy assets, equity commitment, governance structure, incorporation documents and audited financial statements.
Link to the full call for expression of interest document HERE
Applications must be submitted by 17:00 CAT on 24 July 2026.
Good luck!
Author: Bryan Groenendaal
