CEC seeks partnerships in renewable energy for mining in Zambia
The Copperbelt Energy Corporation (CEC) is seeking partnerships in renewable energy for mining in Zambia. The agency’s Chief Financial Officer, Mutale Mukuka emphasized the need for partnerships, innovative structuring, and financing solutions to address the demand and supply gap in the mining sector.
Speaking at the Africa Energy Forum in Nairobi, Kenya, during a panel discussion on energy transition in mining, Mr. Mukuka highlighted the energy sector reforms in the region that enable private sector participation and open access, allowing mining companies to directly contract their power requirements from Independent Power Producers (IPPs). This framework presents an opportunity for investment in energy infrastructure to bridge the power deficit.
Regional power pool
According to Mr. Mukuka, the opening up of regional power pool markets provides business-to-business solutions to deliver reliable power supply to mines amidst the energy transition. As a member of the Southern African Power Pool (SAPP), CEC, a private utility, offers an integrated solution for reliable power supply to mines by utilizing various energy sources, including its 34-megawatt solar plant.
While the power deficit in the region is evident, there are opportunities for investments in power projects to address this gap. However, certain barriers, such as lending requirements and risk allocation, hinder investment in the sector. Mr. Mukuka called for a review of traditional risk allocation and urged stakeholders to make it more relevant and adaptable to the changing landscape. He also encouraged private sector players to explore business-to-business solutions to not only solve project financing challenges but also ensure reliable power supply.
CEC is committed to working with partners and lenders to deliver bankable projects that support the mining sector. The company continues to innovate and invest in infrastructure to provide reliable power, with plans to commission an additional 60-megawatt solar plant before the year’s end.
