Energy Deficit and the Drive for Coal Power
Zambia is forecasting an energy shortfall of 700 MW by 2024 due to an unprecedented drought impacting hydropower production.
As the second-largest copper producer in Africa, the nation must import more electricity to support its mining operations.
Investment in Coal Power to Bridge the Gap
On July 10, ZCCM-IH, which manages Zambia’s mining and energy sector interests, announced a new 300 MW coal power plant. This $400 million project aims to mitigate the energy deficit impacting copper mines.
Project Partners and History
The project will be executed by Maamba Collieries Limited (MCL), owned 65% by Nava Bharat Singapore and 35% by ZCCM-IH. This follows the first 300 MW coal power plant built in 2016 to supply the national grid.
The second plant is essential amidst Zambia’s severe energy crisis due to the historic drought affecting hydropower production, leading to a projected 700 MW energy deficit by 2024.
National Efforts to Increase Energy Imports
To lessen the mining sector’s burden, the national electricity company ZESCO has decided to boost electricity imports.
Additionally, First Quantum Minerals, the country’s leading copper producer, announced in April its negotiations to purchase 80 MW from regional power suppliers in Southern Africa.
Timeline for the New Power Plant
The construction of the new 300 MW coal power plant is slated to take two years, from August 2024 to July 2026.