The Zambia Coal-fired power plant project worth $900 million advances as Zambia strengthens efforts to resolve persistent electricity shortages. Moreover, the project targets structural power deficits driven by reduced hydropower output and rising industrial demand across the national grid.
Additionally, authorities prioritize thermal generation as drought conditions continue to reduce water levels at key hydroelectric facilities. Consequently, Zambia experiences recurring electricity shortages that affect mining operations and industrial productivity across major economic zones.
Current status update (2026)
In 2026, the Zambia Coal-fired power plant program progresses from early planning into phased implementation stages across selected sites. Furthermore, developers shift focus toward structured investments and bankable projects with clearer financing and equity participation frameworks.
The broader Zambia Coal-fired power plant strategy connects directly with the Sinazongwe coal plant project, which advances as a 600 MW phased development. Moreover, the Sinazongwe project translates national expansion plans into a site-specific infrastructure asset designed to improve baseload generation capacity and support mining sector electricity demand.
The proposal, put forward by the Chinese-owned Wonderful Group of Companies, is seen by the government as a critical short-term measure to diversify the energy mix and ensure power stability for households and key industries like copper mining, which have seen production severely curtailed. Also, in what is expected to aid the country diversify its energy mix, Amsons Group has signed an agreement to install a 1GW Solar Power Plant in the country which will be the largest of its kind in the Sub-Saharan region.
However, the move to embrace a major new coal facility which is a fossil fuel, raises significant environmental concerns and questions about Zambia’s commitment to climate action, especially given the global push toward cleaner, renewable energy sources.
Reported on December 6, 2024
Amid the power crisis in the country, Zambia is currently considering plans of setting up a $900 million coal-fired plant. This comes in as the South African country battles unprecedented electricity shortages that have been brought by a record drought. This upcoming coal-fired power plant will boast a capacity of 600MW.
The worst ever regional dry spell in over a century has stricken the hydro-electricity power generation in Zambia that accounts for approximately 85% of the country’s electricity supply. The country’s households and businesses are currently enduring power outages that last even more than 24 hours at a time. The country’s copper producers in the country inclusive of First Quantum Minerals Ltd have had to import power in order to stay operational.
Also read: Zambia’s 300 MW Coal-fired Power Plant to be Constructed
The development of this coal-fired plant will be instrumental in meeting the country’s electricity needs. This project will provide an alternative for the country’s power needs and therefore promoting efficient power supply. The country has recently seen struggles in its power supply. This is caused by the reduction of the water levels at the Kariba Dam. The dam serves as the main hydroelectric power supply of the country currently.
Projects Similar to Zambia’s $900 Million Coal-fired Power Plant
In a similar project, Zambia’s Maamba Collieries is expected to construct a 300-megawatt coal-fired power plant at an estimated cost of $400 million. The construction of this particular project is expected to take 2 years. Similarly, the plans of this power project were also unveiled following a devastating drought that hit the country’s power generation.
In seeking other power alternatives, the country brought forward ambitious plans of involving itself in a joint floating solar project. Zambia seeks to undertake this project with its neighboring country Zimbabwe. This project is to be located at the Kariba Dam and is also expected to provide alternatives for power supply in the country.
Also read: Zambia and Zimbabwe Joint Floating Solar Project
“The overall cost of this upcoming project is projected at roughly $400 million. Of its total cost, a consortium of debt (investors) will provide a funding of roughly $300 million,” the statement revealed.
Currently Maamba has already signed a 20-year power purchase agreement with state-owned ZESCO.
Additionally, Maamba set up its very first 300MW coal-fired power plant in 2016 under the initial phase of its power generation business.
Zambia’s Coal Power Potential
Zambia possesses an immense potential for coal power, boasting proven reserves of at least 80 million tonnes in the Southern Province. Additionally there are other potential coal reserves in other parts of the country but their size has not yet been explored and quantified.
However, climate experts say that coal power in Zambia may not be sustainable due to a number of reasons. The experts argue that solar and alternative sources of renewable energy are cleaner as compared to coal power. Moreover, they argue that the global climate change policies are getting more stringent. This therefore means coal will surely not have a place in a sustainable energy future.
Also read: The Mega US$4.5 Billion Batoka Hydro-power Project Commencement Set for 2025
Project Fact Sheet
Project name: Zambia Coal-fired power plant project
Estimated value: $900 million
Technology: Coal-fired thermal generation
Objective: Reduce national electricity deficit
Key driver: Hydropower instability due to drought
Target capacity expansion: National baseload increase
Implementation approach: Phased development model
Strategic focus: Energy security and industrial stability
Project Team
Project sponsor: Government of the Republic of Zambia
Energy authority: Ministry responsible for energy development
Utility operator: ZESCO Limited
Investment partner: ZCCM Investments Holdings (ZCCM-IH)
Private sector developers: International energy partners
Regulatory body: Competition and Consumer Protection Commission (Zambia)
Key beneficiary sector: Mining and industrial industries
Grid integration: National transmission network
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