Zambia’s state-owned power utility, ZESCO Limited, has signed a 25-year Power Purchase Agreement (PPA) to offtake the entire electricity output from a 400-megawatt thermal power plant being developed in the Sinazongwe–Sinazeze area at an estimated cost of US$561 million.
According to ZESCO Chief Operating Officer, Mr. Fitzpatrick Kapepe, the utility will purchase almost the full output from the plant, excluding auxiliary losses, once the facility becomes operational.
Mr. Kapepe said the project will play a critical role in enhancing Zambia’s energy security by diversifying the country’s electricity generation mix and reducing overreliance on hydropower, which remains vulnerable to drought conditions.
He explained that the thermal plant will provide reliable baseload power capable of supporting key sectors of the economy, including mining, agriculture and industry, regardless of weather conditions.
The additional generation capacity is also expected to contribute to Zambia’s target of achieving 10,000MW of installed power capacity while supporting the government’s broader economic growth agenda, including plans to significantly increase copper and agricultural production.
Chief Executive Officer of Ezra Group, Mr. Meron Ezra, said the coal-fired power project will be implemented in two phases of 200MW each.
He disclosed that construction of the first phase has already commenced following the completion of pre-construction activities, with the initial 200MW expected to be commissioned by the end of next year.
Mr. Ezra added that the second phase is scheduled for completion in December 2029, noting that the overall project is currently about 20 per cent complete.
The US$561 million project is expected to create between 1,200 and 1,500 jobs during the construction phase and is anticipated to improve electricity access, strengthen grid stability and stimulate further investment across Zambia’s economy.