Construction of the 300MW Phase II expansion of the Maamba Coal Power Plant in Zambia continues to advance toward expected completion in July 2026 as the country seeks to address chronic electricity shortages caused by prolonged droughts and reduced hydropower output.
Developed by Maamba Collieries Limited through its energy subsidiary Maamba Energy Limited, the US$400 million project will double the facility’s existing generation capacity from 300MW to 600MW upon completion.
The project also forms a key component of Zambia’s efforts to strengthen baseload power supply, and support mining and industrial growth. It is also aimed at improving national energy security. The development is backed by a long-term power purchase agreement (PPA) with ZESCO Limited and is expected to become one of the country’s largest thermal power generation assets. Additionally, the thermal energy project in Zambia is mirrored by another project, the 300MW KCM coal-fired power plant which is seeing renewed interest by Indian mining major Vedanta.
Maamba Coal Power Plant Phase II Project Fact Sheet
Location: Maamba
District: Sinazongwe District, Southern Province
Developer: Maamba Collieries Limited
Operating Company: Maamba Energy Limited
Shareholders:
- NAVA Limited (through Nava Bharat Singapore)
- ZCCM Investments Holdings Plc
Phase I Capacity: 300MW (2, 150MW units)
Phase II Capacity: 300MW (2, 150MW units)
Total Capacity After Expansion: 600MW
Estimated Investment: US$400 million
Construction Start: August 2024
Target Completion: July 2026
Power Offtaker: ZESCO Limited
PPA Duration: 20 years
Fuel Source: Coal from the Maamba coal mine
Financiers:
- National Pension Scheme Authority (NAPSA)
- Indo Zambia Bank
- Local lender consortium
Status: Under construction
300MW Maamba Collieries Zambia Coal-fired Power Plant to Start Construction
Reported July 13, 2024 – Zambia’s Maamba Collieries will build Zambia’s 300 MW Coal-fired Power Plant costing an estimated $400 million over a two-year period from August 2024, its local shareholder ZCCM-IH said in a statement. Zambia currently relies on hydroelectric turbines to generate about 85% of its power. The country’s heavy dependence on hydro led to frequent power cuts due to water level drops during droughts. There have been rolling power cuts which last a minimum of 12 hours in a single day.
Moreover, Zambia has been both importing and rationing electricity after a devastating drought hit hydro-power generation. It is also the main source of power for Africa’s second-largest copper producer.
ZCCM-IH said Maamba Collieries had reached an agreement with anchor lenders for financing the construction and installation of a 300MW coal-fired power plant in Zambia.
Cost of Zambia’s 300MW Coal-fired Power Plant
“The total cost of the project is estimated at $400 million, of which a consortium of debt (investors) will finance approximately $300 million,” the statement said.
Furthermore, Maamba has already signed a 20-year power purchase agreement with Zambia’s state-owned ZESCO for the energy plant’s project, ZCCM-IH added.
Furthermore, Maamba set up its first 300 MW coal-fired power plant in 2016 under the initial phase of its power generation business, ZCCM-IH said.
Additionally, just to note, Zambia’s 300 MW Coal-fired Power Plant will be identical to the existing plant and will consist of two generating units of 150 MW each, increasing the total number of generating units up to four.
A Look into Zambia’s Current Energy Status
“Zambia has 2,800 MW of installed electricity generation capacity. 83 percent of this is from hydro, 9 percent from coal, 5 percent from heavy fuel oil, and 3 percent from solar. The mining sector is the country’s largest power consumer, using 51 percent of total generated electricity, followed by the domestic sector at 33 percent. Only 43 percent of Zambians have access to the national power grid. This is represented by 67 percent of urban residents and 14.5 percent of rural residents, ” a statement from Zambia’s energy ministry reveals.
“Moreover, Zambia’s installed solar capacity is 89 MW. Zambia has two utility scale solar power plants. French company, Neoen, and U.S. company, First Solar, own and operate the 47.5 MW Bangweulu Solar Power Station in Lusaka, of which the Zambian government holds a 20 percent stake through its Industrial Development Corporation (IDC). Italian firm, Enel Green Power also owns and operates the 34 MW Ngonye Solar Power Station in Lusaka Province. Zambia has abundant potential to generate additional solar power as it possesses ample and intense sunlight, averaging about 2,000 – 3,000 hours of sunshine per year.
Zambia’s Energy Sector Overview
The country’s energy resources include electricity hydropower, petroleum, coal, biomass and renewable energy. It is only petroleum which is wholly imported in the country. “The Energy Sector in Zambia consists of three main sub-sectors namely: Electricity, Renewable Energy and Petroleum. The installed generation capacity in Zambia is 3356.6 MW. The installed capacity comprises of 83 percent of hydro, 9 percent of coal, 5 percent of heavy fuel oil and 3 percent solar PV. The mining sector remains the largest consumer of power at 51% of total generated electricity, followed by the domestic sector at 33%.
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