Maamba Energy Limited (MEL) announces commencement of its 300 MW Phase II power plant expansion project.
The event was graced and launched by the President Mr. Hakainde Hichilema at a groundbreaking ceremony on 13th August 2024, marking a significant milestone in the nation’s journey towards energy security. The expansion, which will add an additional 300 MW to the existing capacity, aims to double MEL’s energy output to 600 MW, which is scheduled to be completed by mid-2026.
During the groundbreaking ceremony, President Hichilema emphasised the critical role the expansion played in the government’s broader strategy to ensure Zambia’s energy security and economic prosperity.
“I am glad that we are here today to celebrate the launch of the project for additional 300 MW of environmentally acceptable coal energy to add on to the existing 300 MW.
This project symbolises our relentless efforts in our journey for energy security in our country. We have an energy insecurity instigated by the drought as it were, because we are a mono energy economy – because over 80% of our energy is coming from hydro. And then drought wiped out our capacity and hence the importance of this project.”
The President highlighted the pressing need to diversify Zambia’s energy mix, currently dominated by hydro-electric power, which has become increasingly unreliable due to climate-induced water shortages.
Speaking at the event, Chairperson of ZCCM-IH said that a few months after Board of ZCCM-IH, 35% shareholders in MEL approved investment in Maamba Phase II the groundbreaking ceremony was a record-breaking response to a rapidly evolving power deficit situation. He added, “The company is using CFBC technology that results in low emissions. Today, we look around the plant and premises and notice how clean and green this operation is. Not only has Maamba Energy transformed the local environment in Sinazongwe, but also helped diversify Zambia’s energy mix”.
The Republican President earlier had elaborated on the government’s multi-faceted approach to address the power deficit and underscored the importance of public private partnerships in achieving these goals, stating that the Maamba Energy project is a prime example of such collaboration.
“The launch of the project today has become possible largely due to the support and encouragement from the government of Zambia. This project truly exemplifies the power of public private partnership,” said Mr. Ashok Devineni Chairman of Nava Limited, the 65% shareholder of energy company as well as the Chairperson of the Maamba Energy Board, while addressing the gathering.
Mr. Devineni stated, “It is remarkable, just as Maamba Collieries was vital to the Zambian economy since the early 1970s soon after Independence, Maamba Energy, today, 52 years later, continues to be a pillar of strength to the Nation’s economy.
He further highlighted that, “The additional power after the expansion, would help reduce the energy deficit in times of drought, and importantly in times of surplus, the baseload power could be exported, adding forex to the country’s revenue, which is aligned with the 8th National Development Plan (2022-2026).”
The expansion is crucial not only for Maamba Energy but for the entire nation as the project would generate additional employment during construction and after completion of the project.
Maamba Energy’s Phase II expansion is not just about increasing power output but also about helping stabilise Zambia’s energy balance and supporting key industries such as mining and manufacturing and will support the government’s vision of increasing copper production, reducing load shedding and providing electricity to every citizen in the country.
To bring the project to maturity, Maamba Energy with the help of the government, has secured substantial financial backing from local institutions anchored by NAPSA. This local investment ensures that the financial benefits of the project stay within the country, further boosting the economy.
Delivering the vote of thanks, Lt. Col. Cyrus Minwalla (Retd), the Chief Executive Officer stated that the Phase II expansion was a domestic solution to a domestic situation. He thanked all the ministries, various stakeholders and the sponsors Nava Ltd and ZCCM-IH for making this historic launch a reality. He also thanked the traditional leaders and the community for their continued support to the company and assured them of the continued backing of Maamba Energy.
The company has recently rebranded from Maamba Collieries Limited to Maamba Energy Limited to reflect its broader vision and strategic focus on energy. With robust environmental clearances and a long-term Power Purchase Agreement with ZESCO, Maamba Energy remains committed to maintaining high environmental standards and ensuring high availability for sustained supply of base load energy to the national grid.
The Maamba Phase II expansion represents a significant step towards resolving Zambia’s energy crisis, promoting economic growth, and improving the livelihoods of its citizens.