Zambia has unveiled plans to develop 300 MW of solar power projects integrated with battery energy storage systems (BESS). The initiative is being implemented in partnership with Norway under the framework of Paris Agreement Article 6, which enables countries to collaborate on climate action through carbon credit trading.
The program is a major step toward a cleaner, more resilient energy sector. At the core is an innovative financing mechanism known as the “Carbon Feed-In Premium.” This model is designed to unlock private sector investment by providing developers with a fixed, guaranteed payment for carbon credits generated by their projects for a minimum of ten years. By creating an additional, predictable revenue stream alongside electricity sales, the mechanism helps reduce financial risks and improves project bankability.
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Energy stability
A central requirement of the initiative is the integration of battery storage. Each solar project must include a minimum of 30 minutes of storage capacity, ensuring greater grid stability and reliability even during periods of low solar generation. This approach is expected to reduce Zambia’s dependence on hydropower often impacted by drought and limit reliance on coal-fired generation, strengthening overall energy security.
To qualify, developers must demonstrate that their projects are at an advanced development stage but have not yet commenced construction. They must also prove the existence of a financing gap, showing that the projects would not proceed without carbon credit support. Additionally, all projects are required to meet international environmental and social standards while contributing to national priorities such as emissions reduction and job creation.
The application window is open until May 31, 2026, with proposal evaluations scheduled for July and August. Successful applicants will enter into agreements with ZANACO, which will oversee the management and disbursement of carbon finance payments. Overall, the initiative demonstrates Zambia’s strategic use of international climate finance to accelerate renewable energy deployment, enhance grid reliability, and advance its transition toward a more sustainable energy future.
