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Zambia’s ZESCO signs PPA for 163MW hydropower

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  • Zambia’s state owned energy utility, ZESCO Limited, recently signed a 25-year Power Purchase Agreement (PPA) with Lufubu Power Company (LPC) to secure 163MW of baseload hydropower from a new plant in the water-rich Northern Province.
  • Construction has not yet begun on the project. 

The Lufubu Power Company Limited is a wholly owned Zambian Private Company incorporated in 2012. It is an Independent Power Producer incorporated for the purpose of undertaking the development of a hydropower scheme on the Lufubu River basin. Lufubu River is located between the districts of Mpulungu and Nsama in Northern Province of Zambia.

The Lufubu hydropower project arrives at a critical time, when the government is accelerating various solutions to bridge the energy deficit, eliminate load shedding, and achieve 100% electricity access by 2030.

The Lufubu Hydropower Plant, with an estimated investment exceeding USD 800 million (ZMW 23.7 billion), will be constructed on the Lufubu River across Mpulungu, Nsama, and Mporokoso Districts. Upon completion, it will contribute approximately 5% to Zambia’s installed capacity, with potential to double output in line with growing demand. The plant’s strategic northern location ensures high operational efficiency due to consistent hydrology, directly supporting industrialization, mining sector growth, and rural electrification.

ZESCO will connect the plant to the national grid via a new 330kV transmission line from Mporokoso to Kasama, reinforcing grid reliability and enabling power distribution to underserved regions. This infrastructure is a cornerstone of the government’s plan to unlock economic opportunities in Northern Province and integrate it into the national energy framework.

Author: Bryan Groenendaal

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