The Government of Zambia, in partnership with Norway, has issued a call for proposals under a Carbon Feed-In Premium (CFIP) program targeting up to 300 MW of grid-connected solar projects with battery storage to mobilize private investment.

Developers must submit the proposals by May 31, 2026. Final selection results are expected by the end of June 2026.

The bilateral agreement enables Zambia to host mitigation activities and authorize the generation of internationally transferred mitigation outcomes (ITMOs) for transfer to Norway.

The program is structured to provide fixed carbon price payments for ITMOs over a minimum of 10 years. These payments are designed to supplement revenues from power purchase agreements (PPAs) and enable projects that would otherwise not reach financial closure.

Eligible renewable energy projects must demonstrate a clear financing gap and include at least 30 minutes of battery energy storage to deliver partial firm power and reduce reliance on coal-based generation.

The first window is limited to solar projects with an installed capacity between 30 MW and 100 MW, connected to the national grid, with Zambia Electricity Supply Corporation (ZESCO) or its subsidiaries as the primary offtaker. Limited secondary offtake arrangements are permitted under defined conditions.

Applicants must submit a detailed project description through a prescribed application form, including estimated emission reductions calculated using Zambia’s grid emission factor of 0.4 tCO2 per MWh and projected net electricity generation.

The projects must include co-located battery energy storage systems sized to provide at least 30 minutes of storage, equivalent to plant capacity, in megawatt-hours. Charging from non-renewable sources is prohibited.

Projects must be at an advanced development stage without having commenced construction, defined as the commitment to significant capital expenditure.

Developers must have completed feasibility studies, secured land, obtained an investor license from the Zambia Development Agency, conducted topographic studies, and received environmental clearance from the Zambia Environmental Management Agency.

Additionally, projects must have a signed PPA with ZESCO or be in advanced negotiations, with draft agreements available or signed agreements more than 18 months old, provided construction has not yet started.

In 2023, ZESCO signed a memorandum of understanding and a joint development agreement with Masdar, the UAE government-owned renewable energy company, for a $2 billion capital investment to develop solar projects in the country.

In 2020, ZESCO and Power Construction Corporation of China (PowerChina) signed three contracts worth $548 million.