THE Green Climate Fund and the Africa Development Bank (AfDB) have given Zambia more than US$100 million for Zambia’s renewable energy financing framework.
Green Economy Minister Collins Nzovu said yesterday that the Green Climate fund had provided USS 52.50 million while the AfDB had co-financed the project with an additional US$ 51.5 million.
He said this yesterday at the signing ceremony for the implementation of agreement for the technical assistance project between his ministry, the ministry of Energy and the Rural Electrification Authority (REA), in Lusaka.
Mr Nzovu said that additional funding to the tune of US$ 37.5 million was expected to come from local financial institutions.
He said of the total funding, USS 4 million was a grant component to assist his ministry and REA to create an enabling environment for private sector involvement, pulling resources for investment in the mini-grid and off-grid sub-sectors.
He said activities under the component would catalyse the market for decentralised energy solutions and directly contribute, energy access.
The minister said that the Government was grateful for the AfDB technical assistance project aimed at assisting the REA, the ministry of Energy and other public sector institutions to create and enabling environment for private sector involvement in the energy mix.
Ministry of Energy Permanent Secretary Francesca Zyambo said that the project would assist in the current efforts to enhance private sector investment in energy.
Ms Zyambo said it was also a very cost-effective and realistic way of providing services as doing so through the traditional grid extension was not cost effective.
“Some of the efforts already underway are development of the mini grid regulatory framework which will provide guidance on licensing, tariff setting and technical standards,” she said.
REA Chief Executive Officer Linus Chanda said the project had come at the right time when the Government was working at reducing barriers to investment in the energy sector, some of which included the cost of undertaking feasibility studies.