Zambia Energy Demand Stimulation Incentive programme: Driving Productive Use of Energy and Energy Access

Zambia Energy Demand Stimulation Incentive Programme (ZEDSI)

CLICK HERE TO REGISTER FOR THE CALL FOR PROJECT APPLICATION

‍Call for Project Application

Mini-grid operators are invited to submit their project application for grant funding under the Zambia Energy Demand Stimulation Incentive (ZEDSI) programme. Applications are ongoing and can be submitted on a rolling basis with expected mini-grid installations by Q3 2026.

Sustainable Energy for All  (SEforALL), , in collaboration with The Rockefeller Foundation and the Global Energy Alliance for People and Planet (GEAPP)  is supporting the Government of Zambia’s Presidential Initiative with the objective of powering 1,000 communities with decentralized renewable energy (DRE) solutions by 2030. SEforALL has designed a two-track approach to achieve this objective and address the unique challenges of the Zambian rural electrification market.

Track 1: Zambia Energy Demand Stimulation Incentive (ZEDSI): This Results-Based Financing incentive is designed to support the commercial viability and sustainability of a first set of 100+ priority mini-grid projects. Administered by the Universal Energy Facility and managed by SEforALL provides grant funding to mini-grid operators to stimulate sustained energy consumption growth, through productive uses of energy in agri-value chains, businesses, public institutions and households, resulting in rural economic development, improved revenues and operating margins thereby enhancing the commercial viability of mini-grid projects.

Track 2: Integrated Framework for Electrification: SEforALL is providing support to the government of Zambia to develop and implement investment strategies to scale-up financing inflows into the DRE sector to get from 100+ communities to 1,000 communities. Developers will be empowered to exploit synergies between various DRE technologies, ensuring no-one is left behind. The goal is to develop sustainable models for DRE investments that can be replicated at scale, building on the learnings drawn from the ZEDSI programme.

Under Track 1, the Universal Energy Facility (UEF) will support mini-grid operators to undertake demand stimulation activities – by providing grant funding to eligible mini-grid projects upon verification of sustained electricity consumption and revenue growth via productive uses of energy. Demand stimulation activities are those operational activities that directly result in increased electricity consumption and revenue growth for the mini-grid project which provides adequate, reliable electricity to agri-value chains, businesses, public institutions and households engaged the in the production of good or services.

Mini-grid operators are required to take an ecosystem approach to ensure the commercial viability and sustainability of their projects. The ZEDSI programme complements other existing donor funding including the Beyond the Grid Fund for Africa (BGFA), European Union, United Nations Development Programme (UNDP) and the World Bank that collectively supports the DRE sector in Zambia.

The Call for Project Applications Is Open.

Developer Applications can be submitted on the UEF Platform on a Rolling Basis. Kindly note that all applications received shall be processed on a First-come, First-served basis.

Funding:

Eligible mini-grid operators will receive a share of US$1.4 million upon installation and commissioning of mini-grid projects and verification of sustained customer electricity utilization and revenue growth resulting from the demand stimulation activities.

Tender Approach:

The Results-Based Financing approach will be implemented which allows eligible mini-grid operators to select and prepare their projects end-to-end and achieve the pre-defined project outcomes/results.

Eligible mini-grid operators that meet the application requirements will be awarded grant funding on a First-come, First-served basis. Applications can be submitted on a Rolling Basis – allowing eligible mini-grid operators to participate in the ZEDSI programme once they meet the application requirements.

Eligibility Requirements:

Interested Applicants must fulfil the following eligibility requirements:

• Must be a for-profit mini-grid company legally registered with established business operations in Zambia with relevant business/trading license
• Must have at least one (1) operational mini-grid project in any sub-Saharan Africa country with operational capability to develop and implement new mini-grid projects as well as undertake the sales and operation of productive use appliances/equipment in Zambia
• Must provide evidence of ability to construct new mini-grid projects under the ZEDSI Programme within 18 months
• Must provide Smart Meter integration (both Bulk Meter at the Mini-grid Plant and Customer Metering) with details of API enabled Customer Relationship Management or Payment system to be integrated with UEF Platform
• Must provide evidence of ability to undertake rural economic development activities and business models to drive electricity demand and revenue growth
• Must provide evidence of compliance with financial reporting requirements, including audited financial reports and company tax clearance no older than recently past 12 months
• Must comply with product quality and minimum service standard; environmental and social management systems; and gender and youth mainstreaming requirements

An Applicant may be:

• A single legal entity: for-profit Mini-grid company, licensed to conduct business in Zambia and in good standing with all relevant authorities.
• A single legal entity meeting the criteria in 2.4.2(a) representing an unincorporated/unregistered Consortium or joint venture which will be authorised in writing by members of the Consortium or joint venture to act as Lead Applicant; or
• A Consortium that is incorporated/registered as a single legal entity in Zambia, having the capacity to enter a contract under the relevant laws of the country and is in good standing with all relevant authorities.
• In the case of a Consortium: the Lead Applicant must be a mini-grid company. The Lead Applicant can only submit one Application for a portfolio of mini-grid projects. However, a PUE distributor/supplier can be included as a collaborator in more than one Lead Applicant’s application whether in collaboration with a sole Applicant or as part of a Consortium. In essence, a PUE distributor/supplier may be part of multiple applications in conjunction with more than one applicant.

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Application Documents

Below is a list of application documentation that must be provided as part of the application:

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Application Process

Application Steps

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Step 1 – Eligible Applicants must Register their Interest to Apply via this registration page

Step 2 – Upon receipt of Registration and subject to meeting the eligibility requirements, the UEF will create a Log-in account for the Applicant on UEF Online Platform.

Step 3 – Applicants are required to download and review the ‘application documents and templates’ available on the Online Platform before starting their Project Application.

Step 4 – Applicants must complete the Online Application Form and submit all supporting documentation via the UEF Online Platform.

Step 5 – Successful Applicants shall undergo further background checks to validate their application prior to award of Grant Support Agreement.

If you have any questions or require further information, contact us on: UEF@seforall.org

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