The Sinazongwe coal plant project advances in Zambia as ZCCM Investments Holdings (ZCCM-IH) partners with Chinese-owned Wonderful Group Services to develop a 600 MW coal-fired power station valued at about $452 million. Moreover, the project targets Zambia’s growing electricity deficit, while it strengthens supply stability for mining and industrial users. In addition, it reduces pressure on hydropower systems that have struggled due to recurring droughts affecting the Kariba Dam. Consequently, Zambia prioritizes energy diversification to support long-term economic growth.
Furthermore, ZCCM-IH confirms that the project will run through Ever Great Energy Company Limited. Wonderful Group Services controls this special purpose vehicle and leads project execution. Meanwhile, ZCCM-IH enters the structure as a strategic minority investor, and it secures long-term returns through equity participation. Additionally, the partnership spreads financial risk between both parties while enabling technical delivery at scale.
The project delivers 600 MW in total installed capacity. Developers construct the plant in two phases, and they begin with 300 MW in Phase One. Subsequently, they expand capacity by another 300 MW in Phase Two. Although authorities do not publish detailed timelines, they expect Phase Two completion within five years after Phase One starts operations.
In addition, ZCCM-IH commits $54.2 million to acquire a 30% equity stake in Ever Great Energy Company Limited. Therefore, the arrangement positions the state-linked investor as a minority partner, while Wonderful Group Services retains operational control and project leadership.
Sinazongwe coal plant project targets Zambia’s 1,400 MW electricity gap
The Sinazongwe coal plant project directly addresses Zambia’s estimated 1,400 MW peak electricity deficit. Moreover, the country experiences persistent power shortages, especially during dry seasons. As a result, industries and households face load management and supply interruptions.
In addition, hydropower still dominates Zambia’s electricity mix. However, declining water levels reduce output at major reservoirs linked to the Kariba Dam system. Consequently, generation instability increases, and energy planners accelerate alternative baseload solutions.
Therefore, the coal-fired project strengthens grid reliability by adding stable baseload capacity. Furthermore, it reduces dependence on rainfall-driven generation. In parallel, it supports industrial continuity during drought periods.
Additionally, Zambia expands copper production plans toward 3 million metric tones annually by 2031. Therefore, the mining sector requires stable electricity to meet output targets. As a result, energy security becomes central to industrial policy and investment decisions.
The Sinazongwe coal plant project aligns with earlier proposals reported for Zambia’s broader coal expansion strategy as the country faces a deepening electricity crisis. In a related development, Zambia has considered a wider pipeline of coal-fired generation projects valued at about $900 million aimed at strengthening baseload capacity and reducing dependence on hydropower during drought periods, as reported on Zambia’s $900 million coal-fired power plant plans unveiled as the country faces power crisis. This earlier proposal also focused on addressing the same structural deficit in electricity supply, particularly for mining and industrial demand centers, which remain highly sensitive to load shedding and grid instability.
Sinazongwe coal plant project construction integrates mining and power systems
The Sinazongwe coal plant project will rise in Sinazongwe District in Southern Province. Developers design the plant with two 150 MW units in Phase One. Then, they replicate the configuration in Phase Two to reach 600 MW total capacity. Moreover, engineers deploy Circulating Fluidized Bed (CFB) technology. This system improves combustion efficiency and allows flexible coal usage. In addition, it supports more stable operation compared with conventional coal systems.
Furthermore, the project integrates supporting infrastructure. Developers construct transmission lines, water treatment systems, and grid evacuation facilities. Consequently, they connect the plant to the national grid through Muzuma Substation in Choma District.
In addition, the project includes a dedicated coal supply base covering about 8,150 hectares. Therefore, developers secure long-term fuel supply and reduce operational risk linked to external sourcing.
Moreover, construction activities generate employment opportunities during both building and operational phases. Local contractors also benefit from procurement and supply contracts linked to civil works and infrastructure delivery.
Project Fact Sheet
Project name: Sinazongwe coal plant project
Location: Sinazongwe District, Southern Province, Zambia
Total investment value: $452 million
Installed capacity: 600 MW
Development structure: Two-phase construction (300 MW + 300 MW)
Phase one configuration: 2 × 150 MW units
Technology: Circulating Fluidized Bed (CFB) coal technology
Project Company: Ever Great Energy Company Limited
ZCCM-IH investment: $54.2 million
ZCCM-IH equity stake: 30%
Fuel source: Dedicated coal mine (8,150 hectares)
Grid connection point: Muzuma Substation, Choma District
Main objective: Reduce 1,400 MW power deficit
Secondary objectives: Support mining growth and energy security
Regulatory status: Pending approval from competition authority
Development timeline: Second phase within five years of first phase completion
Project Team
Project sponsor: ZCCM Investments Holdings (ZCCM-IH)
Development partner: Wonderful Group Services
Project Company: Ever Great Energy Company Limited
Majority shareholder: Wonderful Group Services
Equity partner: ZCCM Investments Holdings (30%)
EPC structure: Turnkey delivery arrangement under developer supervision
Technology provider: Circulating Fluidized Bed (CFB) system supplier (to be confirmed)
Transmission integration: Zambia national grid authorities
Grid connection node: Muzuma Substation
Regulatory authority: Competition and Consumer Protection Commission (Zambia)
Key government stakeholder: Government of the Republic of Zambia
Primary beneficiaries: Mining sector, industrial users, national grid consumers
Strategic sector alignment: Copper mining expansion program
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