Zambia taps Chinese partner for 600-MW coal plant to boost power supply

Zambia is advancing its energy infrastructure ambitions through a partnership with a Chinese firm to develop a 600-megawatt coal-fired power plant, a project designed to enhance energy security and support the country’s expanding mining industry.

The project reflects the country’s broader effort to strengthen energy security and support economic growth, particularly in the mining sector, which remains the backbone of Zambia’s economy. 

Reliable electricity has become increasingly important as the country seeks to raise copper production and attract new investment into its mining industry.

Zambia is targeting annual copper output of 3 million metric tons by 2031, a goal that will require significant additions to power generation. 

The new plant is also expected to broaden Zambia’s energy mix, complementing hydropower, which has long supplied most of the country’s electricity. 

State-owned investment firm ZCCM Investments Holdings Plc (ZCCM-IH) said it has signed an agreement with Chinese-owned Wonderful Group Services to develop the project at an estimated cost of $452 million.

Two-phase development plan 

The power station will be built in two phases. The first phase will deliver 300 MW of generating capacity, while the second phase will add another 300 MW, bringing total output to 600 MW. 

ZCCM-IH said the second phase is expected to be completed within five years of the first phase becoming operational. The company did not disclose a timeline for the start of construction.

ZCCM-IH takes strategic stake 

The project will be developed through Ever Great Energy Company, a special-purpose vehicle established by Wonderful Group Services for the investment. 

As part of the agreement, ZCCM-IH plans to invest $54.2 million in exchange for a 30 percent equity stake in the venture, giving the state-backed investor a significant position in the project.

Supporting mining and economic growth 

The planned facility is expected to help meet rising electricity demand from households, businesses and mining companies, which require a stable power supply to maintain operations and expand production. 

For Zambia, where copper exports remain a key source of revenue, the project represents another step toward building the energy capacity needed to support industrial growth, strengthen the mining sector and underpin long-term economic development.