Zambia-based Copperbelt Energy Corporation (CEC) plans to invest $500m up to 2026 to boost solar power generation and increase the capacity of its power transmission line link to the Democratic Republic of Congo (DRC), as reported by Reuters.
The power infrastructure solutions provider operates the only line connecting the DRC to the Southern African Power Pool (SAPP).
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CEC plans to strengthen the power transmission line between Zambia and Congo, increasing its capacity from 250MW to 550MW.
CEC chief financial officer Mutale Mukuka stated the company’s intention to attract investors to finance the projects as Zambia recovers from a four-year sovereign debt default.
“We’re looking to invest around $500m over the next two years and most of this financing will come from third-party financiers,” Mukuka told Reuters.
He emphasised the company’s commitment to investing “quite heavily in transmission projects to make sure that power from [new projects] can reach consumers.”
Interest in Zambia’s energy projects has been renewed following the country’s recovery from a sovereign default and an El Niño-induced drought that severely impacted power generation.
Despite the challenges posed by the drought, CEC reported revenue growth of more than 240% in 2024, reaching $8.66m compared to $2.53m in 2023, along with an EBITDA [earnings before interest, taxation, depreciation and amortisation] increase of 228%.
The company commissioned the 60MW Itimpi Phase 1 solar photovoltaic (PV) plant in April 2024. It produced 95.3 gigawatt hours (GWh) of renewable energy during the year, contributing to the mitigation of power shortages in Zambia and the wider region.
CEC’s board of directors approved a 136MW expansion of the Itimpi solar PV project to maintain growth and reach a generation capacity of 200MW by 2025. This expansion will boost CEC Renewables’ total capacity to 230MW.
The company has also secured $96.72m through the issuance of its second Green Bond for this development.
Combined with the first tranche, the total raised under the company’s $200m medium-term note programme has reached $150.27m. In July 2024, ProMarks and Trafigura signed a preliminary agreement with the Angolan government to develop a power transmission project to transfer surplus green electricity from northern Angola’s hydroelectric dams to the DRC’s Copperbelt province and Zambia.
