- Anzana Electric Group and First Quantum Minerals partner to develop 50 MW of new baseload hydropower capacity in northern Zambia.
- The project aims to provide stable electricity to the Kansanshi and Sentinel mines via a wheeling agreement with state utility Zesco.
- Construction is expected to create 300 jobs and strengthen energy security along the strategic Lobito Corridor.
Anzana Electric Group has announced a strategic collaboration with First Quantum Minerals (FQM) to develop up to 50 MW of new hydropower capacity in northern Zambia. This initiative is designed to provide a dedicated and reliable source of baseload power to FQM’s extensive copper mining operations in the North Western Province. By tapping into river systems in the northern region, the project seeks to mitigate the impact of seasonal hydrological variations that have recently constrained Zambia’s southern power generation assets.
The electricity generated from these facilities will be delivered to the Kansanshi and Sentinel mines through a wheeling arrangement with the national utility Zesco Limited. This model allows the mining giant to reduce its reliance on the national grid and diesel backup systems while simultaneously supporting the overall stability of the Zambian power network. The project aligns with broader regional development goals, particularly the enhancement of the Lobito Corridor which remains a priority for G7 partners and local economic growth.
The development phase is projected to generate approximately 300 jobs over a three-year period with more than 30 permanent roles established once the plants become operational. Beyond immediate mining needs, the inclusion of 50 MW of baseload power is expected to facilitate the future integration of variable renewable energy sources like solar into the regional grid. This investment underscores a growing trend in the African mining sector where private players are increasingly spearheading infrastructure projects to secure long term energy independence.
Energy wheeling in Zambia
Zambia is making significant strides in liberalising its domestic energy market through the implementation of a robust wheeling framework managed by state utility Zesco Limited. Under the newly established Electricity Open Access Regulations 2024, the government has mandated that the national grid be made available to independent power producers for the delivery of electricity to specific industrial consumers. This shift represents a move away from the traditional utility monopoly toward a competitive multi-seller model that encourages private investment in generation infrastructure across the country.
The framework is central to the strategic partnership between Anzana Electric Group and First Quantum Minerals where 50 MW of hydropower will be transported from northern Zambia to mining sites in the North Western Province. By utilising Zesco’s existing transmission lines, private developers can bypass the need for dedicated private infrastructure while ensuring a steady supply of baseload power to heavy industry. To maintain transparency and fairness, the Energy Regulation Board has formalised the cost of grid usage with the Distribution Use of System charge capped at US$c3.00 per kWh for the 2026 period.
This regulatory evolution is expected to enhance national grid stability by reducing technical losses and diversifying the energy mix. By allowing large scale mining operations to secure power from dedicated renewable sources, the wheeling model mitigates the risks associated with national power shortages and seasonal hydrological constraints. The framework also aligns with regional development goals for the Lobito Corridor, providing a blueprint for how integrated power pools can support industrial growth and energy independence across the African continent.
Author: Bryan Groenendaal
