Assessing the Factors Affecting the Viability of PPP Solar Projects: The Case of Luanshya District

Abstract

This research study explored the potential of Public-Private Partnerships (PPPs) in addressing Zambia's energy crisis by developing solar power projects in Luanshya District. Zambia, as a country at large, faced significant power shortages, which was largely due to reduced hydropower generation resulting from climate change. Therefore, this research study aimed to assess the viability of PPPs for solar energy projects in Luanshya District. The research study used a phenomenological qualitative approach with convenience sampling to collect data from stakeholders involved in solar power PPP projects in Luanshya. The sample size, which comprised of 15 respondents, was determined by data saturation. The data was collected through Google form structured questionnaire. The findings showed that 46.7% of the respondents believed the projects were not viable whereas 13.3% perceived viability. Financial issues were a significant barrier to solar PPP, with 71.4% of respondents citing high initial investment costs and 64.3% pointing to insufficient returns as key obstacles that could discourage private investors. In conclusion, it was recommended that there should be attractive financial models to entice investors in PPPs as well as further research on appropriate electricity tariffs to ensure return on investments. Keywords: Public-Private Partnerships, Energy crisis, Solar power, Luanshya District, Financial feasibility, Regulatory frameworks, Technological barriers, Socio-economic impacts, Stakeholder collaboration, Chi-squared test, Spearman’s correlation, Viability, Economic growth