Power developer Globeleq has signed a share purchase agreement with Norfund, the Norwegian development institution, for the proposed acquisition of a 51% equity stake in Zambia's Lunsemfwa Hydro Power Company (LHPC)
Based in Kabwe, in Zambia’s Central Province, LHPC operates two hydroelectric power plants totaling 56MW and is currently constructing a 20MW solar PV project.
The remaining 49% is owned by Zambian-based infrastructure investment group, Wanda Gorge Investments.
LHPC sells power to the Zambia Electricity Supply Corporation (Zesco) through a power purchase agreement (PPA) and a portfolio of private customers, which include Copperbelt Energy Corporation (CEC) and Jubilee Metals. It also holds a Southern African Power Pool (SAPP) electricity trading license.
Jonathan Hoffman, Globeleq’s CEO, said the agreement marks a pivotal step in the company's Zambian energy market entry.
“We are excited about this opportunity to enter the Zambian market," he said.
"LHPC’s established team, operations and trading capabilities combined with our extensive experience in Africa, create a strong platform to support Zambia’s broader energy objectives and deliver solutions to a range of energy consumers in the region.”
The acquisition also marks the company’s first investment in hydropower in Africa, further enhancing its diversified renewable portfolio which includes solar, wind, battery energy storage (BESS), hybrid solar plus BESS, and geothermal power plants.
Zambia is a priority country for Globeleq’s growth strategy, where the company is leading the development of a 400MW+ greenfield portfolio of solar, wind power, BESS and hybrid projects, including its 54MWp Kafue solar project awarded under the GETFiT Zambia programme.
The completion of the LHPC transaction is expected to be finalised in the latter half of 2025.
Øystein Øyehaug, Norfund investment director, said Globeleq's involvement would unlock LHPC's long-term growth potential.
"With more than 20 years of experience operating in Africa, we are confident that Globeleq is the right fit to lead the LHPC into its next chapter."
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