Zambia to build rare coal power plant as harsh drought hits dams

9th July 2024

By: Bloomberg


Font size: - +

Zambia’s energy regulator approved the construction of the nation’s second coal-fired power plant, as its worst drought in decades cut output at the hydroelectric dams that account for most of its energy supply.

The Energy Regulation Board awarded a construction permit for the 300 MW facility in the south of the nation, doubling the capacity of an existing plant at the site, it said in a statement Monday. Maamba Collieries, majority owned by Hyderabad, India-based Nava will lead the project.

Zambia relies on hydroelectric turbines to generate about 85% of its power. The heavy dependence frequently brings severe shortages when water levels drop during droughts. The El-Nino induced dry spell — the worst in at least four decades — has prompted rolling power cuts lasting a minimum of 12 hours daily forcing the government to slash its 2024 economic growth forecast to 2.3%.

Zambia signed an implementation agreement with Maamba at the end of June and the company is nearing financial close for the project, Energy Minister Peter Kapala said on state television June 30. Zambia’s national pension fund is evaluating a proposal to provide financing for part of the estimated $400-million project, the company said in an emailed response to questions June 14.

Nava last month declined to comment on the plans.

Financing new coal power has become increasingly difficult as many banks, including Chinese state-owned lenders, have stopped lending for projects that burn the dirtiest fossil fuel.

Edited by Bloomberg



Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...


Latest Multimedia

sponsored by

Economic growth a top priority for GNU
Economic growth a top priority for GNU
19th July 2024 By: Creamer Media Reporter
Magazine round up | 19 July 2024
Magazine round up | 19 July 2024
19th July 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.295 0.354s - 192pq - 2rq
Subscribe Now