Zambia has signed a power purchase agreement (PPA) for a 100-megawatt hybrid wind and solar project, marking a significant step in the country’s efforts to diversify its electricity supply and reduce dependence on hydropower, the Ministry of Energy announced on Saturday.
The agreement, signed between DZGM Energy Resources and the state-owned utility Zesco Limited, will see the project feed electricity directly into the national grid. Energy Minister Makozo Chikote, present at the signing ceremony, emphasized that expanding generation capacity is critical to improving supply reliability and supporting Zambia’s growing energy needs.
“Diversifying our power sources is essential to mitigate risks associated with hydropower reliance and ensure that Zambians have access to a stable and reliable electricity supply,” Chikote said.
Zambia’s power system remains heavily dependent on hydropower, which accounts for over 80% of total electricity output, according to the National Energy Compact. This reliance has exposed the country to climate-related shocks. A severe drought in 2024 sharply curtailed hydropower generation, leaving industries, households, and public services facing prolonged power deficits.
In recent years, authorities have accelerated renewable energy development to strengthen energy security. In September 2025, Africa GreenCo and Serenje Energy signed a preliminary agreement for a 25 MW Lusanje solar plant. By late January, the Natural Resources Development College inaugurated a 20 MW solar project in Lusaka. In February, the Ministry of Energy signed an implementation agreement with Goldenray Energy for a 118 MWp solar plant in Sinazongwe, Southern Province.
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The new DZGM Energy project forms a key part of Zambia’s 2024 Integrated Resource Plan, which prioritizes renewable energy expansion to reduce reliance on a single generation source. By integrating both wind and solar power, the hybrid system is designed to smooth electricity output throughout the day, compensating for fluctuations associated with intermittent energy sources.
Experts say that hybrid projects, which combine complementary renewable technologies, can significantly improve grid stability. “Wind tends to generate more at night or during periods of low sunlight, while solar peaks during the day,” said Joseph Phiri, an energy analyst based in Lusaka. “Combining the two allows for a more balanced and predictable energy supply, which is crucial for industries and households alike.”
However, as the share of variable renewable energy grows, Zambia’s grid will need further modernization to handle intermittent supply and rising demand. Investments in transmission, storage, and smart grid technologies will be essential to fully leverage the benefits of wind and solar power.
The Ministry of Energy said the DZGM project would also contribute to national climate goals, supporting Zambia’s commitment to expand clean energy capacity and reduce greenhouse gas emissions in line with its 2030 climate strategy.
The government hopes that continued investment in renewables will not only enhance energy security but also attract private sector participation and international financing. In addition, expanded renewable capacity is expected to create jobs in construction, operations, and maintenance, providing socioeconomic benefits alongside environmental gains.
Zambia’s push for renewable energy aligns with broader regional trends. Southern African countries are increasingly turning to solar and wind to reduce dependence on hydropower and fossil fuels, improve resilience against climate shocks, and meet growing electricity demand from urbanization and industrialization.
The 100 MW DZGM hybrid project is expected to come online in stages over the next two years, feeding clean electricity into the grid and supporting Zambia’s transition toward a more diversified, resilient, and sustainable power system.
