Bold takeaway: Zambia is attracting a $900 million investment to add 1,300 MW of new power capacity, signaling a major shift toward a more diversified and reliable energy mix. But here’s where it gets controversial: can private, solar-and-coal projects truly reduce dependence on hydropower and stabilize the grid in a climate-risk era?
Overview
A Tanzanian diversified group, Amsons Group, and Exergy Africa, an energy-focused investment firm active in East and Southern Africa, have agreed to develop 1,300 megawatts (MW) of solar and coal-based generation in Zambia. The deal, signed in Lusaka on December 9, outlines a total investment of roughly $900 million.
What the projects entail
- Capacity mix: 1,000 MW from solar facilities and 300 MW from a coal-fired plant, designed to strengthen the national grid and support industrial and mining growth.
- Timeline: Solar capacity of 500 MW is expected to come online within 18 months, with the full 1,300 MW goal reached in 24 months.
- Purpose: The initiatives aim to improve grid reliability for key sectors, spur manufacturing and mining investment, and reduce vulnerability to hydropower droughts.
Strategic motivations
- Diversification of energy sources: Zambia currently relies heavily on hydropower, which accounts for about 90% of electricity generation. The new projects are part of a broader push to diversify the energy mix and lower exposure to drought-related outages.
- Private-sector role: Energy minister Makozo Chikote indicated government plans to expand private investment in the sector, aligning with national energy development strategies.
About the partners
- Amsons Group: A Tanzanian group with interests spanning fuel distribution, cement, milling, logistics, packaging, real estate, and electronics assembly. The company operates across Tanzania, Kenya, Mozambique, the DRC, and Zambia, bringing logistical strength and diversified energy experience.
- Exergy Africa Limited: A Zambia-based firm that invests in and develops projects along the energy value chain, including power trading, generation, and distribution. Its involvement signals a strategy to leverage regional expertise and scale.
Potential impacts and questions for readers
- Grid stability: Will adding 1,300 MW from solar and coal meaningfully stabilize the grid and support industrial demand, or will coal introduce new financing and environmental considerations in a predominantly clean-energy transition?
- Energy reliability vs. affordability: How will these projects affect electricity prices for households and businesses, and how will they balance reliability with climate and emission concerns?
- Local benefits: What are the plans for local job creation, supplier development, and community impact as these projects move from signing to construction and operation?
- Controversial angle: Some critics may argue that a heavy emphasis on coal could slow decarbonization or crowd out cheaper, faster-build solar-storage solutions. Do the projected timelines and cost metrics justify the mix, or should policy favor faster deployment of renewables with storage? Share your thoughts in the comments: should Zambia prioritize rapid solar deployment even if it delays some coal projects, or is a blended approach the wiser path?
Context
This initiative follows a broader trend in Africa toward leveraging private capital to diversify energy portfolios, improve grid resilience, and unlock industrial growth while navigating climate risks and a changing energy market. The outcome will depend on project execution, financing terms, regulatory support, and the integration of these capacities into an evolving national grid strategy.
