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New funding to help unlock Zambia's energy potential (Image source: Adobe Stock)

New investment in Zambia’s energy sector will help fund generation and transmission projects in the country and open up network and trading opportunities across southern and eastern Africa

Bordering eight countries and sitting within the Southern African Power Pool, with growing links to East and Central Africa, Zambia is positioned as a natural hub for regional power trade.

It follows a US$250mn financing deal between Swiss energy and commodities group Mercuria with Africa-focused investor Exergy.

Specifically, the funds will help to finance generation and transmission projects by two Exergy subsidiaries: Lunzua Power Company and Lusitu Transmission and Distribution Company.

• US$250mn investment will boost Zambia’s power infrastructure

• Projects will strengthen regional electricity trade

• Investment supports Zambia’s 10,000 MW power target by 2031

Exergy operates in the power sector through three subsidiaries: Lunzua Power in generation, Lusitu Transmission and Distribution in transmission, and Kanona in trading, balancing surplus and deficit positions.

It trades in the southern African power market and is developing a pipeline of infrastructure projects, including a transmission highway linking Zambia to the East African power market.

“Through its subsidiaries, its pipeline will contribute to Zambia’s target of 10,000 MW of supply by 2031, a central pillar of the Grow Zambia agenda, and to the reliable supply needed by mining, agriculture, manufacturing, tourism, and industry,” an Exergy statement noted.

“Regionally, its trading and cross-border ambitions support Mission 300, the World Bank and African Development Bank initiative to connect 300 million Africans to electricity by 2030.”

The financing agreement, signed in Lusaka and subject to regulatory approvals, marks one of the largest private capital commitments to Zambia’s energy sector, as well as Mercuria’s entry into the region’s power market.

Zambia confidence

According to Exergy, the deal signals confidence in Zambia, in the region, and in the ability of global partners to finance African energy at scale on commercial terms.

The company also added that Mercuria brings more than capital: as one of the world’s largest energy traders, active in over 50 countries, it offers a global view of energy and commodity markets, and of how power, metals and trade connect.

According to Mercuria, Zambia’s stability, growth plan and regional position underpinned its decision to commit long-term capital.

The company “is pleased to play its part in resolving the power infrastructure bottlenecks that have traditionally hindered Africa’s growth,” a Mercuria statement read.

“In doing so, it sought power industry expertise, a disciplined team and an execution-ready project pipeline, and found all three in Exergy—a scalable regional platform it wants to help build.”

Zambia has seen a wave of new investment and projects in renewable energy in recent years, in addition to traditional hydro and thermal capacity (First Quantum diversifies Zambia energy supply).

Private capital

Mercuria added that it sees private capital playing a critical role in developing strategic energy infrastructure, alongside the traditional development finance model.

Both parties credited Zambia’s power sector reforms, including open access in the electricity market, with enabling independent companies to build and grow.

As well as investment in renewables, the country continues to develop traditional energy sources, such as hydro (Anzana Electric nets US20mn for small hydropower) (Globeleq completes Lunsemfwa hydro acquisition).

Green hydrogen and ammonia plant set for South Africa (Image source: Hive Energy)

Técnicas Reunidas has landed an engineering services contract for a large green hydrogen and ammonia plant planned for South Africa

Hive Hydrogen South Africa (HHSA) has awarded the company the front-end engineering design (FEED) contract for a facility that will produce approximately one million metric tons of green ammonia annually in an industrial zone located in Nelson Mandela Bay.

The project will utilise local renewable electricity to produce green hydrogen, which will subsequently be converted into green ammonia for domestic use and international export.

“Our aim remains to produce the lowest cost green ammonia globally,” said John Nutt, Hive’s technical director.

Following completion of the engineering work, and once a final investment decision is made, the FEED contract is expected to be converted into an EPC (engineering, procurement, and construction) contract for the actual construction of the plant.

The green hydrogen and ammonia facility is being developed in the Coega Special Economic Zone, adjacent to the Port of Ngqura, in Eastern Cape Province.

According to HHSA, the projected investment for the production plant would reach US$1.8bn.

The scope of work Técnicas Reunidas will carry out under the FEED contract includes hydrogen production electrolysers, air separation units, and the green ammonia production loop; a desalination plant; storage systems with a capacity of over 100,000 metric tons; pipelines to the port of Ngqura; and auxiliary facilities.

Gonzalo Pardo of Técnicas Reunidas said the company is delighted to have been selected by Hive.

“Leveraging our deep technology expertise and end-to-end EPC vision, we look forward to delivering a successful FEED and contributing to Coega’s role as a benchmark for Africa’s sustainable industrial growth,” said Pardo.

“Furthermore, this award is perfectly aligned with the strong focus on services projects that Técnicas Reunidas is currently implementing as part of its…strategic plan.”

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GE Vernova will extend the operating life of five gas turbines at three Egyptian power plants by up to 15 years. (Image source: GE Vernova)

GE Vernova has signed a services agreement to provide Rotor Life Extension (RLE) solutions for five of its 9F gas turbines operating at the Kureimat, Nubaria and Cairo North power plants in Egypt

The agreement has been signed with affiliates of the Egyptian Electricity Holding Company (EEHC), including Upper Egypt Electricity Production Company (UEEPC), Middle Delta Electricity Production Company (MDEPC) and Cairo Electricity Production Company (CEPC), and has been endorsed by EEHC.

Under the agreement, GE Vernova is expected to extend the operating life of the five gas turbines by 13 to 15 years. Together, the turbines represent approximately 1,250 MW of generating capacity, with the relevant services scheduled to be carried out between 2028 and 2035.

Extending gas turbine operating life

The gas turbine rotor is a core component of a power plant and requires scheduled maintenance as part of its lifecycle. GE Vernova will apply its expertise to assess the full residual life of components as part of the Rotor Life Extension programme, with the aim of supporting more efficient and effective operation.

The agreement builds on the ongoing collaboration between GE Vernova, EEHC and its generation company affiliates. By focusing on the long-term integrity of the gas power assets, the initiative is intended to support the reliability and efficiency of Egypt’s electricity generation.

“This agreement reflects EEHC’s continued focus on preserving the long-term performance and reliability of important generation assets across our fleet,” said Eng. Gaber El-Desouki, Chairman of the Board of Directors & CEO, Egyptian Electricity Holding Company (EEHC). “By working with GE Vernova and our generation companies, we are taking practical and proactive steps that can help protect strategic assets, support efficient and reliable power production, and contribute to Egypt’s broader electricity and energy objectives.”

“Extending the life of these gas turbines across our generation companies is expected to support grid stability and the continued availability of dispatchable power, while helping us increase the value of existing infrastructure and avoid premature, capital-intensive replacement,” said eng. Mahmoud Al-Naqeeb, full-time board member for Electricity Production Companies Affairs.

Egypt’s evolving power sector

Egypt’s power sector is balancing rising energy demand with efforts to improve operational efficiency and integrate a growing share of renewable energy.

Thermal power generation, primarily based on combined-cycle gas turbines, continues to play a central role in the country’s electricity system, accounting for approximately 80% of Egypt’s electricity production.

“As Egypt’s electricity needs continue to evolve, maintaining and modernizing existing gas power assets, such as those at Kureimat, Nubaria, and Cairo North, is essential to support reliability, improve fuel use, and strengthen energy system resilience,” said Joseph Anis, president & CEO, Europe, Middle East & Africa, GE Vernova’s Gas Power business.

“This agreement reflects our continued commitment to working closely with EEHC, its affiliates, and other stakeholders in Egypt to support energy security through reliable and more efficient power generation. By helping extend the life of critical gas turbines, we aim to support our customers’ long-term operational priorities, optimize the value of existing infrastructure, and contribute to the continued development of Egypt’s power sector.”

GE Vernova supports Egypt’s power fleet

The latest agreement follows GE Vernova’s ongoing work to support the modernisation and long-term performance of Egypt’s power generation fleet.

In April 2026, GE Vernova announced an order from MDEPC for modernisation work at the Banha and Nubaria power plants. The project includes Advanced Gas Path upgrades and multiyear services agreements.

The latest initiative builds on more than five decades of cooperation between GE Vernova’s businesses and Egypt’s power sector, supporting the country’s electricity infrastructure through technology, solutions, local talent development and project financing.

GE Vernova currently supports customers in Egypt across power generation, transmission, software and services. Its installed base in the country includes more than 60 gas and steam turbines, with a combined generating capacity of approximately 10 GW.

USTDA funds a feasibility study to expand hydropower and electricity networks across the DRC and Zambia's Lobito Corridor. (Image source: USTDA)

The U.S. Trade and Development Agency (USTDA) has signed an agreement with Anzana Electric Group Limited to fund a feasibility study aimed at strengthening power infrastructure along the Lobito Corridor in the Democratic Republic of the Congo (DRC) and Zambia

The study will assess opportunities to expand hydropower generation and upgrade electricity distribution networks across Lualaba Province in the DRC and North-Western Province in Zambia.

The project is expected to improve power reliability for copper and cobalt mining operations and more than three million people across the region.

“Reliable power allows mines to operate, businesses to profit, and families to thrive,” said Thomas R. Hardy, USTDA’s deputy director.

“USTDA’s investment will help to strengthen the mineral supply chains America’s security and economy depend on, while building the power systems our partners in the DRC and Zambia need to grow.”

Power infrastructure along the Lobito Corridor

The Lobito Corridor provides a transport route for copper, cobalt and other critical minerals to overseas markets through the Port of Lobito in Angola. The USTDA-funded feasibility study will examine the rehabilitation of existing hydropower assets, the development of new hydropower generation and the expansion of electricity distribution infrastructure.

The proposed infrastructure would support mining operations that supply the Lobito Corridor while also serving surrounding communities.

The study will identify suitable U.S. sources of supply and assess how the project can be structured to attract financing. This could create opportunities for U.S. equipment and engineering services in electricity distribution and hydropower generation.

USTDA-funded programmes are carried out by U.S. companies. The request for proposals for the feasibility study will be posted on USTDA’s website.

Expanding electricity access

Reliable electricity access remains a challenge in the DRC and Zambia, where mining activity consumes the majority of available power, leaving households and local businesses underserved.

The project is intended to bring new electricity connections to homes and businesses while helping mining companies along the Lobito Corridor reduce their reliance on diesel generation.

Brian Kelly, CEO of Anzana Electric Group, said, “The countries along the Lobito Corridor are uniquely positioned to create long term economic value from their critical minerals. Realizing that ambition depends on reliable electricity, which underpins industrialization, drives local value addition, creates jobs and strengthens economies. Anzana’s win-win approach to infrastructure development brings together public and private partners to identify investment opportunities that advance national development priorities while strengthening strategic supply chains. We are proud to partner with USTDA on an initiative designed to catalyze long term private investment in the infrastructure needed to support sustainable economic growth and expand opportunity across the Lobito Corridor.”

The agreement forms part of USTDA’s wider support for the Lobito Corridor. Its other support includes projects focused on power generation, digital connectivity, port modernisation, and critical minerals extraction and processing.

BESS facility at Morocco mine site (Image source: Envision Energy)

Morocco's first large-scale lithium iron phosphate (LFP) battery energy storage system (BESS) has been successfully energised at OCP Green Energy's Benguerir mining site

The energization milestone marks the start of the progressive commissioning of this large-scale BESS.

The 25 MW / 125 MWh system was supplied and commissioned by Envision Energy under a contract signed in late 2025, and is now undergoing testing before entering commercial operation.

“The successful energisation of Morocco's first large-scale battery storage project demonstrates the reliability, flexibility and cost-effectiveness of integrated renewable-plus-storage solutions in industrial applications,” said John Lee, general manager of Envision Energy for the Middle East and Africa.

“Envision is proud to be part of this landmark project and to contribute green technology to Morocco's energy transition.”

Envision Energy provided the full storage system and led the commissioning work, integrating the BESS with the site's solar generation, grid conditions and industrial load profile.

The system is designed to shift surplus solar power from daytime generation to peak consumption hours, reducing the site's peak-hour electricity bill by approximately 25%.

With five hours of storage capacity, the BESS functions as an industrial energy management tool rather than a short-duration grid asset.

It is supported by US$20mn from the Clean Technology Fund, managed through the African Development Bank, and is designed for a 25-year lifetime with daily charge-discharge cycles.

The project marks a milestone for battery storage and industrial decarbonisation in Morocco and supports the country’s target of achieving 52% of installed electricity capacity from renewable sources by 2030.

For OCP, the value lies not in battery capacity, but in the system’s ability to reduce peak-hour costs over a 25-year operating life.

“Storage is the natural extension of our energy strategy. It allows us to reconcile the variable output of renewable energy with the continuous needs of our industrial platforms, while strengthening the reliability of our energy supply,” said Omar Kadir, CEO of OCP Green Energy.

“Beyond OCP Group's own needs, this technology paves the way for a more harmonious integration of renewable energy into the national power system. By bringing greater flexibility and resilience to the grid, it will help accelerate the deployment of renewable capacity.”

On 21 September, OCP S.A. also announced that it had raised almost US$150mn in financing, to be used for corporate purposes, through a tap issue on its April 2026 hybrid bond.

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