October 9, 2024 at the Presidential Delivery Unit Forum– ZESCO with financial
backing from GreenCo Power Services Limited (GreenCo) and First Quantum Minerals Ltd (FQM),
has signed an Electricity Supply Agreement with GreenCo to secure additional electricity imports from
South Africa to help mitigate Zambia’s ongoing energy crisis, caused by record low water levels at Lake
Kariba, the country’s primary hydroelectric source. This signing was followed by the signing of the Power
Supply Agreement between FQM and GreenCo.
This tripartite collaboration will start with 125MW of additional power imports, with potential to increase
to 250MW and expand to other GreenCo clients. GreenCo and FQM will fully finance these emergency
imports. Of the 125MW, 40MW will be allocated to FQM, with 85MW supplied to Zambia's national grid
to support households, hospitals, and businesses. ZESCO has committed to gradually returning this
electricity to GreenCo once hydropower capacity is restored, expected in 2025.
“This partnership demonstrates how the public and private sectors can collaborate to secure
vital energy supplies for both industrial and residential users,” said Wezi Gondwe, GreenCo's
Head of Business Development and Executive Director. “By supporting ZESCO, we’re ensuring
stable power for Zambian industries and residents.”
FQM, a major mining company and power consumer in Zambia, will maintain its operations while
contributing to domestic energy supply, reducing the impact of load shedding for the country. “First
Quantum is dedicated to Zambia’s economic and energy stability,” said Anthony Mukutuma,
Zambia Director at FQM. “This agreement supports our operations while easing pressure on the
national grid.”
This initiative aligns with FQM’s broader commitment to Zambia, including its $1.35 billion investments
in projects like the Kansanshi mine S3 Expansion and Enterprise nickel mine. These developments
strengthen Zambia’s role in global copper and nickel production, crucial for renewable energy supply
and global decarbonization. GreenCo’s role goes beyond financing. By blending imported and local
power generation, GreenCo ensures a stable electricity supply for FQM in the medium term. Over the
past year, GreenCo has worked closely with ZESCO to devise creative solutions to the
country’s electricity challenges. As a member of the Southern African Power Pool (SAPP), GreenCo
facilitates regional power trading, essential during energy crises and for developing Zambia's energy
resources.
“We thank Eskom for their critical support during this challenging period, and GreenCo and FQM
for their financial assistance. We also express gratitude to the Southern African Power Pool
(SAPP) and neighboring utilities for their cooperation in ensuring regional energy stability,” said
Engineer Victor Mapani, Managing Director ZESCO.
