Industry knowledge brief - September 29, 2026
Large-scale solar projects in Zambia, Dubai, and Romania are drawing attention to a broader trend: the Middle East and Africa are becoming major growth markets for utility-scale solar. These projects show how competitive tariffs, refinancing, and hybrid storage models are turning solar from a niche option into core infrastructure.
Zambia: First 100 MW Utility-Scale Solar Plant
Zambia's Maamba solar project developed by Nava Limited in association with Maamba Solar Energy Limited was connected to the national grid which began supplying power in September 2026. The plant with a capacity of 100 MWac has been built at a cost of about $90 million. It works under the power purchase deal with ZESCO, which is Zambia's state-owned utility, and the prices charged for electricity are about $0.078/kWh. The Maamba solar project has been owned 65% by Nava Global and 35% by ZCCM Investments Holdings.
For Zambia, the plant is strategically important. Hydropower has historically dominated the country's electricity mix, but drought has exposed the risks of over-reliance on rainfall. Zambia's installed solar capacity has grown from only 88 MW in 2021 to approximately 841 MW in 2026. The government aims to reach 2,733 MW by 2031, which would make solar about 26% of total installed generation capacity. The Maamba project demonstrates that frontier markets can attract private capital when contracts, tariffs, and partners are structured properly.
Dubai: $2.7 Billion Refinancing for Noor Energy 1
Dubai Electricity and Water Authority has declared the completion of the refinancing agreement worth $2.7 billion related to Noor Energy 1, the fourth phase of Mohammed bin Rashid Al Maktoum Solar Park, on September 27, 2026. The deal was finalized ahead of schedule and made it possible to substitute the debt received in the course of construction with repayment terms. Due to the fact that banks provide lower rates when it comes to financing operational assets compared to financing construction projects, refinancing reduces the borrowing cost and enhances project profitability over a long-time perspective.
Noor Energy 1 includes 700 MW of solar power combined with 250 MW of solar power. This solar power plant has around 15 hours of thermal storage, which allows producing electricity even at night. The project has signed a contract with DEWA (Dubai Electricity and Water Authority) to supply the energy at the rate of 7.3 American cents per kWh for 35 years. The project is owned by DEWA at 51%, while ACWA Power from Saudi Arabia and Silk Road Fund from China possess the rest of the shares. The larger solar power plant will produce 5 GW of capacity by 2030.
Romania: 315 MW of New Solar Capacity
Romania's Iepurești and Ghimpați solar parks, developed by Nofar Energy, were inaugurated in September 2026. Together they add more than 315 MWp. The Iepurești plant alone accounts for 169.4 MWp and is currently Romania's largest operational solar park. The two parks are expected to generate around 430 GWh annually, enough to power more than 250,000 households and avoid roughly 160,000 tonnes of CO₂ emissions each year.
The projects were supported by a €110 million financing package from the European Bank for Reconstruction and Development and Raiffeisen Bank International, with backing from the EU's InvestEU program. Nofar Energy has nearly 850 MW under development in Romania and is advancing 280 MW/860 MWh of battery storage. The company believes Romania's energy landscape could look fundamentally different by 2030 if several gigawatts are brought online.
Financing Innovation: Hybrid Solar-Plus-Storage
One of the main drivers of this expansion is the hybrid financing model used for solar and energy storage technologies. The EBRD is using a commercial framework which was initially developed in Egypt. Under this model, the contracts are backed by the state for the next 25 years and are in US dollars. This system was first implemented for the 1.1 GW Obelisk solar and storage project in Egypt which reached its financial conclusion in June 2025 through hybrid financing which was provided by the EBRD, African Development Bank, British International Investment and the European Investment Bank.
The model is meant to tackle solar energy's inconsistency through the transmission of energy production to the evening power consumption hours, improvement of contractual terms, and ability to avoid low prices in the wholesale market. The EBRD is assessing around $70 million financing for Nubia Benban in Aswan-a 200 MW solar plant with 120 MWh storage capacity-and anticipates more hybrid projects to become financially accessible in Egypt before the end of 2026.
Challenges and Outlook
Despite strong momentum, challenges remain. Grid infrastructure in many African and Middle Eastern markets requires significant upgrades. Policy stability and currency risk can still deter investors. Supply chains for batteries and solar components remain exposed to trade tensions and logistical constraints.
Yet the direction is clear. Competitive tariffs, operational refinancing, and hybrid storage models are making solar projects more bankable. Zambia's Maamba plant shows that frontier markets can attract private capital. Dubai's Noor Energy 1 refinancing demonstrates how operational assets can unlock cheaper debt. Romania's parks illustrate the scale achievable when development and financing align.
Boasting pipeline projects exceeding 133 GW in Africa together with over 200 GW in planned ones in MENA, the next phase of development will rely on implementation, including grid developments, regulatory clarity and increasing solar-plus-storage capacities. The message for investors and developers is clear; the two regions have transcended pilot projects to deployment of gigawatt-scale projects. The solar infrastructure boom is already in progress rather than simply being a prediction for the future.
