Industry Trend Analysis - Bright Spot For Solar Investment - OCT 2017


BMI View: Solar power investment will be a bright spot in Zambia following the success of the first round of the World Bank's 'Scaling Solar' initiative. More cost-reflective tariffs and efforts to diversify the power sector away from a high hydropower reliance will provide a further boost for investment into solar projects over our 10-year forecast period.

We expect Zambia to be a bright spot for solar power investment in Southern Africa over the short- to medium term, a view which we have held since last year after the government signed an agreement with the IFC to participate in the World Bank's 'Scaling Solar' initiative ( see 'Renewable Energy Hotspots: Zambia To Outperform', June 24 2016).

We expect that the Zambian government's efforts to increase solar power capacity in the country will be successful, for three main reasons:

  • Small Solar Capacity Boost, Diversification Needed
    Total Electricity Capacity By Type, MW (2016-2026)
    e/f = BMI estimate/forecast. Source: EIA, UN, BMI

    This article is part of our Middle East & Africa coverage. To access this article subscribe now or sign up for free trial