- The Copperbelt Energy Corporation (CEC), a private energy generation, transmission and distribution company traditionally servicing the mining sector in Zambia, will invest US$500-million over the next two years to increase its solar capacity plus double the capacity of a power transmission line to Democratic Republic of Congo to 550 megawatts MW from 250 MW currently.
Speaking to Reuters, CFO Mutale Mukuka said CEC wanted to attract investors to finance the projects as the country emerges from a four-year sovereign debt default. “We’re looking to invest around $500 million over the next two years and most of this financing will come from third party financiers,” he said.
Green Bond
CEC’s US$200 million Green Bond was awarded ‘Bond of the Year’ at the IJGlobal Awards 2024.
Issued in December 2023 through its subsidiary, CEC-Renewables, the Green Bond Medium-Term Note Programme was designed to finance renewable energy projects, with a primary focus on solar power.
The bond attracted strong interest from both local and international investors, with the first tranche of US$53.5 million oversubscribed by 178%, and the second tranche of US$96.7 million oversubscribed by 230%. This overwhelming response reflects the growing confidence in both green bonds as a viable financing tool for the development of green projects and the company’s strategy.
The CEC Group continues to support Zambia’s transition to sustainable energy through key solar projects, including the 34MWp Riverside Solar PV Project, commissioned in 2023, and the 60MWp Itimpi I Solar PV Project, which was commissioned in April 2024.
The proceeds from the second Green Bond tranche are funding the development of the 136 MWp Itimpi II Solar PV Project. Collectively, these projects will add a total of 230 MW of renewable energy to Zambia’s electricity grid.
Read more on Zambia’s energy sector HERE
Author: Bryan Groenendaal
