ZESCO Secures Power Supply from South Africa

GRENCO Power Services CEO Anna Hajduka shaking hands with ZESCO MD Victor Mapani after an additional electricity import from South Africa MOU signing ceremony after the Presidential Delivery Unit Forum at Taj Pamodzi hotel in Lusaka. pix By Mandela

... Partnership with GreenCo and First Quantum Minerals to Address Zambia’s Energy Crisis

By Francis Maingaila 

Lusaka, Zambia, - (October 10, 2024) - ZESCO has secured additional electricity imports from South Africa to address Zambia's ongoing energy crisis, thanks to financial backing from GreenCo Power Services Limited (GreenCo) and First Quantum Minerals Ltd (FQM). 

This collaboration was formalized through the signing of an Electricity Supply Agreement between ZESCO and GreenCo, followed by a Power Supply Agreement between FQM and GreenCo.

The partnership will initially provide 125 MW of additional power imports, with the potential to increase to 250 MW in the future. GreenCo and FQM will fully finance these emergency imports. 

Of the initial 125 MW, 40 MW will be allocated to FQM’s operations, while 85 MW will be supplied to Zambia's national grid to support households, hospitals, and businesses. 

ZESCO has committed to returning this electricity to GreenCo once hydropower capacity is restored, expected by 2025.

“This partnership demonstrates how the public and private sectors can collaborate to secure vital energy supplies for both industrial and residential users,” stated Wezi Gondwe, GreenCo's Head of Business Development. “By supporting ZESCO, we’re ensuring stable power for Zambian industries and residents.”

FQM, a significant mining company in Zambia, will maintain its operations while contributing to domestic energy supply, reducing the impact of load shedding. 

“First Quantum is dedicated to Zambia’s economic and energy stability,” remarked Anthony Mukutuma, Zambia Director at FQM.

“This agreement not only supports our operations but also alleviates the burden on the national grid, ensuring that we can continue our mining activities without interruption.”

This initiative aligns with FQM’s commitment to Zambia, including its $1.35 billion investments in projects like the Kansanshi mine S3 Expansion and the Enterprise nickel mine. 

GreenCo ensures a stable electricity supply for FQM by blending imported and local power generation. “Our approach is not just about financing; it’s about creating a sustainable energy solution for all parties involved,” added Gondwe.

Over the past year, GreenCo has worked closely with ZESCO to develop solutions to the country’s electricity challenges. 

As a member of the Southern African Power Pool (SAPP), GreenCo facilitates regional power trading, which is crucial during energy crises. 

“The support from Eskom and the collaborative efforts of GreenCo and FQM are invaluable as we navigate this challenging period,” said Engineer Victor Mapani, Managing Director of ZESCO. 

“We remain committed to restoring our hydropower capacity to ensure long-term energy security for Zambia.”

This partnership marks a pivotal moment in Zambia's efforts to overcome its energy challenges, leveraging private sector resources and regional cooperation to secure a more stable power supply for the future.