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Amid the power crisis in the country, Zambia is currently considering plans of setting up a $900 million coal-fired plant. This comes in as the South African country battles unprecedented electricity shortages that have been brought by a record drought. This upcoming coal-fired power plant will boast a capacity of 600MW.
The worst ever regional dry spell in over a century has stricken the hydro-electricity generation in Zambia that accounts for approximately 85% of the country’s electricity supply. The country’s households and businesses are currently enduring power outages that last even more than 24 hours at a time. The country’s copper producers in the country inclusive of First Quantum Minerals Ltd have had to import power in order to stay operational.
The development of this coal-fired plant will be quite instrumental in meeting the country’s electricity needs. This project will provide an alternative for the country’s power needs and therefore promoting efficient power supply. The country has recently seen struggles in its power supply. This is caused by the reduction of the water levels at the Kariba Dam. The dam serves as the main hydroelectric power supply of the country currently.
Projects Similar to Zambia’s $900 Million Coal-fired Power Plant
In a similar project, Zambia’s Maamba Collieries is expected to construct a 300-megawatt coal-fired power plant at an estimated cost of $400 million. The construction of this particular project is expected to take 2 years. Similarly, the plans of this power project were also unveiled following a devastating drought that hit the country’s power generation.
In seeking other power alternatives, the country brought forward ambitious plans of involving itself in a joint floating solar project. Zambia seeks to undertake this project with its neighboring country Zimbabwe. This project is to be located at the Kariba Dam and is also expected to provide alternatives for power supply in the country.
“The overall cost of this upcoming project is projected at roughly $400 million. Of its total cost, a consortium of debt (investors) will provide a funding of roughly $300 million,” the statement revealed.
Currently Maamba has already signed a 20-year power purchase agreement with state-owned ZESCO.
Additionally, Maamba set up its very first 300MW coal-fired power plant in 2016 under the initial phase of its power generation business.
Zambia’s Coal Power Potential
Zambia possesses an immense potential for coal power, boasting proven reserves of at least 80 million tonnes in the Southern Province. Additionally there are other potential coal reserves in other parts of the country but their size has not yet been explored and quantified.
However, climate experts say that coal power in Zambia may not be sustainable due to a number of reasons. The experts argue that solar and alternative sources of renewable energy are cleaner as compared to coal power. Moreover, they argue that the global climate change policies are getting more stringent. This therefore means coal will surely not have a place in a sustainable energy future. |
