An auction run under the Scaling Solar scheme run by the World Bank Group unit saw winning bids of $0.06/kWh for 45MW from a joint bid by French developer Neoen and US thin-film giant First Solar, and $0.078 from Italian energy group Enel, which plans to build a 28MW array.

The bids were “the lowest prices for solar power to date in Africa, and among the lowest recorded anywhere in the world”, said the IFC. It added that the 25-year tariffs for the plants are not index-linked, giving the $0.06 rate a lifetime equivalence around $0.047 – “on par with recent auctions in Peru and Mexico”, where tenders delivered rock-bottom solar prices.

Gevorg Sargsyan, the World Bank’s global lead for clean energy, added: “There aren’t any implicit or explicit subsidies involved in the deal, nor does Zambia have a sophisticated and liquid financial market.”

The plants – which will add about 5% to Zambia’s total generating capacity, currently hydro-dominated and prone to blackouts – are due to reach financial close within three months and be completed no later than a year after that.

Other bidders taking part in the final stage of the auction included EDF Energies Nouvelles, Globeleq and Shanghai Electric Power, said the IFC.

Scaling Solar was set up to offer developing nations a package of support to get utility-scale solar quickly into development, and is targeting 1GW of development over the next three years.

The initiative gives government agencies taking part – in this case Zambia’s Industrial Development Corporation – a pre-set procurement process, finance options, and access to insurance and guarantee products.

The multilateral organisation’s CEO Philippe Le Houérou said: “It is now possible for governments across sub-Saharan Africa to look first to solar power as a solution for inexpensive, quick-to-build power, something unimaginable outside of South Africa until now.”

Zambia has signed up to a second round of Scaling Solar tendering, while Senegal is next in line for the scheme.