The Government of Zambia, in collaboration with Norway, has launched a Carbon Feed-In Premium (CFIP) program seeking proposals for up to 300 MW of grid-connected solar projects with battery storage to attract private investment. Developers are required to submit proposals by May 31, 2026, with final selections expected by the end of June 2026. This initiative allows Zambia to host mitigation activities and authorize the generation of internationally transferred mitigation outcomes (ITMOS) for transfer to Norway.
The program offers fixed carbon price payments for ITMOS over a minimum of 10 years, supplementing revenues from power purchase agreements (PPAs) to enable projects that might not otherwise achieve financial closure. Eligible projects must demonstrate a financing gap and include battery storage capable of delivering at least 30 minutes of firm power, helping reduce dependence on coal-based generation.
The first phase focuses on solar projects with capacities between 30 MW and 100 MW connected to the national grid, with Zambia Electricity Supply Corporation (ZESCO) or its subsidiaries as the primary offtaker. Proposals must include detailed project descriptions, estimated emission reductions using Zambia’s grid emission factor of 0.4 tCO2 per MWh, and projected net electricity generation. Co-located battery energy storage systems are required, and charging from non-renewable sources is not allowed.
Projects must be at an advanced development stage without construction having started. Developers are expected to have completed feasibility studies, secured land, obtained investor licenses from the Zambia Development Agency, conducted topographic studies, and received environmental clearance from the Zambia Environmental Management Agency. Additionally, projects should have signed PPAs with ZESCO or be in advanced negotiation stages, ensuring readiness for implementation once selected.
ZESCO has previously partnered with international companies to expand renewable energy in Zambia. In 2023, it signed a memorandum of understanding and joint development agreement with Masdar, the UAE government-owned renewable energy company, for a $2 billion investment in solar projects. Earlier, in 2020, ZESCO partnered with Power Construction Corporation of China (PowerChina) through contracts totaling $548 million to further boost the country’s solar capacity.
