Stardust signs 20-year, 30-megawatt power purchase deal

Executive Summary

• Stardust Solar Energy Inc. has secured a 20-year Power Purchase Agreement (PPA) with Zesco Ltd. for a 30-megawatt utility-scale solar project in Zambia.
• The agreement is expected to generate $60 million to $90 million in gross revenues over its term, establishing the largest royalty-based infrastructure transaction in the company's history.
• Stardust Solar will finance development and construction, earning a 50% royalty on energy revenues after operating expenses and loan repayment, creating a high-margin, recurring revenue stream.

Key Details

• Contract Terms: 20-year Power Purchase Agreement (PPA) with Zesco Ltd. (state-owned utility).
• Pricing: Fixed rate of seven U.S. cents per kilowatt-hour.
• Revenue Potential: Estimated $60 million to $90 million in contracted gross revenues over the life of the contract.
• Transaction Structure:
  • Based on a loan and joint venture agreement dated Jan. 12, 2026.
  • Stardust Solar finances project development and construction and provides engineering/technical oversight.
  • Stardust Solar earns a 50% royalty on all energy revenues (after approved allowable operating expenses) for the remaining PPA term following repayment of the project loan and interest.
• Project Specifications:
  • Capacity: 30 megawatts.
  • Components: Approximately 45,000 high-efficiency solar panels.
  • Land: 50 hectares of secured land, exceeding current PPA requirements to allow for future expansion.
• Timeline: Expected to reach commercial operation later this year upon completion of the first two megawatts (Phase 1).
• Upcoming Events: Senior leadership to travel to Zambia in February for government meetings and the formal groundbreaking ceremony.

Notable Quotes

• "This agreement represents a defining milestone for Stardust Solar and the strongest validation to date of our royalty-based growth strategy... By securing a 20-year, government-backed power purchase agreement with a 50-per-cent recurring royalty interest, we are establishing long-duration, high-margin cash flows that directly support our objective of building a scalable global solar royalty platform while delivering clean, reliable energy to countries in need." — Mark Tadros, CEO, Stardust Solar Energy.
• "Utility-scale solar developments supported by stable power purchase agreements play a critical role in strengthening national energy security, supporting economic growth and accelerating the country's transition to reliable, low-carbon power." — Dr. Ochas Kashinge Pupwe, Principal, Stardust Solar Zambia and Megatricity Energy Ltd.