Zambia's Copperbelt Energy Corporation (CEC) is to invest US$500mn over the next two years to upgrade its solar power capacity and to beef up transmission lines to the Democratic Republic of Congo (DRC)
CEC supplies power to most of Zambia’s major copper mines and also sells electricity to customers in neighbouring DRC via the sole power transmission line linking the Congo and the Southern African Power Pool (SAPP).
In 2024, CEC’s operational renewables portfolio increased to 94 MW, after the commissioning of the 60 MW Itimpi-1 solar PV plant, joining an existing 34 MW plant in Riverside, Kitwe.
But, according to Mutale Mukuka, CEC’s chief financial officer, there is an appetite for more.
“We're looking to invest around US$500mn over the next two years and most of this financing will come from third-party financiers,” he told Reuters in an interview.
“We'll [also] invest quite heavily in transmission projects to make sure that power from [new projects] can reach consumers,” he added.
It follows a relaxation of financing constraints as Zambia emerges from a four-year sovereign debt default.
The country has also been tested by an El Niño-induced drought which wiped out a large chunk of homegrown power generation.
Earlier this month, CEC released its full-year 2024 results with managing director, Owen Silavwe, outlining plans to proceed with two additional medium-sized solar PV power plants on top of the flagship 136MW Itimpi II solar PV project, now under construction.
Once commissioned in early 2026, Itimpi II will increase total generation capacity under its subsidiary company, CEC Renewables, to 230MW.
At the end of last year, the group issued a US$97mn green bond to help fund the second phase of Itimpi, a reflection of the easing financial environment.
CEC’s two further solar projects include the 12.5MW Fitula solar PV project and the 20MW Garneton South solar PV project, both located in Kitwe.
The Garneton South solar project is being done under the GET FiT Solar programme while the Fitula solar PV project is a joint venture with one of CEC’s mining customers.
CEC is also keen to upgrade the transmission line to the DRC to 550 MW, from 250 MW currently.
In 2024, it enhanced the capacity on the interconnector through the installation of voltage support equipment.
In opening remarks to the 2024 annual report, Silavwe highlighted the resiliency of the energy system in the face of adversity during recent times.
“Through operational resilience and effective strategy execution, we sustained power supply to our customers, leveraging our own generation and third-party sources locally and regionally,” he noted.
CEC’s 2024 group revenues increased by 43% to US$547.7mn, driven mainly by higher regional and local power sales and wheeling services, though overall profits fell by 30% to US$97mn.
CEC Renewables also released its 2024 results a week later in March, with Hilton Fulele, assets manager, flagging the shift to solar power because of uncertainties facing hydro production.
“As climate-related challenges continue to impact hydroelectric power generation, solar projects will provide a sustainable complement, to support the drive for economic growth in the region,” Fulele noted.
Read more:
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Zambia’s CEC scaling up on solar power
CEC is stepping up solar investments. (Image source: Adobe Stock)
