ANALYSING THE FINANCIAL VIABILITY OF THE 50MW BANGWEULU SOLAR PLANT IN ZAMBIA USING FINPLAN - EMP-A 2024

The financial viability of the Bangweulu 50 MW Power Plant using FINPLAN was analysed by exploring three scenarios to assess the impact on shareholder dividends in a solar power plant project. The first scenario involved varying electricity prices, indicating that the base price of ZMW 1.5 per KWh resulted in the highest dividends and the shortest waiting period for shareholders to access their dividends. The second scenario focused on increasing the quantity of electricity produced, revealing that all tested productivity increases led to higher shareholding dividends without resulting in a lag time before dividend payments. However, increasing productivity to 75% above the base level resulted in higher dividends and ensured better efficiency. The third scenario examined varying loan repayment periods, demonstrating that shorter repayment periods were more profitable in the short term, while longer periods reduced plant profitability. The findings provide insights into the factors influencing the financial performance of solar power plant projects and offer practical implications for project planning and decision-making. It was recommended that exploring price reduction, increasing production and focussing on loans with shorter repayment periods would improve the financial viability and profitability of the solar power plant.