Scaling Solar's Record-Low Prices Transform African Energy
Scaling Solar, a World Bank initiative, is transforming African energy landscapes. Recent tenders have seen record-low solar power prices, with companies like Neoen, First Solar, and Enel winning bids to build photovoltaic plants in Zambia, Senegal, and Madagascar.
In Zambia, Neoen S.A.S. and First Solar Inc. won a bid to build a 45 MW photovoltaic power plant at a cost of 6.02 US cents per kilowatt-hour. Enel, meanwhile, won a bid to build a 28 MW plant at 7.84 US cents per kilowatt-hour. These projects, expected to be completed within a year, will increase Zambia's installed power generation capacity by 5%.
The winning bids are among the lowest solar power prices seen in Africa and globally. The projects are part of Scaling Solar's efforts to expand renewable energy access in Africa. In Zambia, only 20% of the population currently has access to electricity. The International Finance Corporation (IFC) of the World Bank assisted in the bidding process, with 48 project developers participating and 7 making it to the final round.
In Senegal and Madagascar, companies financially supported by Scaling Solar are developing significant solar projects. Africa REN has developed a 16-MW solar farm in Senegal, while Global South Utilities (GSU) is developing a 50-MW solar-storage project in Madagascar. Both countries plan to hold more tenders under the Scaling Solar program in the coming months, aiming to add one gigawatt of solar capacity in three years.
The recent tenders and projects under Scaling Solar demonstrate the potential of solar power in Africa. With record-low prices and significant investment, these projects are expected to expand access to renewable energy and drive economic growth in the region.
