KEY POINTS
- Zambia is considering a 600 MW coal plant to combat energy shortages caused by a severe drought.
- Power outages impact copper mining and other industries, reducing output and increasing energy import costs.
- Coal proposal challenges Zambia’s green energy goals amid rising demand for energy security.
Zambia is evaluating a proposal from Chinese-owned Wonderful Group of Companies Ltd. to build a $900 million coal-fired power plant.
The move comes as the nation grapples with its worst electricity crisis in years, driven by a record-breaking drought that has devastated hydroelectric output, which provides 85Percent of the country’s energy supply.
The prolonged dry spell has forced households and businesses to endure power outages lasting over 24 hours, severely impacting Zambia’s economy.
According to Bloomberg, key industries, including copper mining—a crucial driver of the country’s exports—have been hit hard. First Quantum Minerals Ltd. and other miners have resorted to importing expensive power to sustain production levels.
Coal-powered solution to energy crisis
Wonderful Group, which manufactures ceramic tiles and fertilizers, has proposed constructing a 600-megawatt coal-fired power plant to address Zambia’s energy shortfall. The company argues that the persistent power crisis, compounded by climate change, necessitates immediate diversification of energy sources.
“Every company knows the impact that climate change had this year because of the extensive drought,” said Frank Mulenga, Chief Operations Officer at Wonderful Group, during a meeting with Zambian President Hakainde Hichilema. He revealed that Wonderful’s operations have been curtailed by up to 40 percent due to the energy shortage.
Zambia has historically prioritized cleaner energy solutions, such as hydroelectric power, and has approved only three coal-fired power plants in its history, two of which were greenlit this year. The proposal by Wonderful Group signals a potential shift in Zambia’s energy policy as it seeks immediate solutions to bridge its growing electricity gap.
Balancing energy needs and climate goals
The plan to introduce coal-fired power generation underscores the tension between Zambia’s urgent need for energy security and its commitment to sustainable energy. While coal offers a quick fix to energy shortages, its environmental implications could clash with global climate goals and Zambia’s long-term vision for a green energy transition.
President Hichilema’s administration has emphasized attracting foreign investment and addressing infrastructure challenges to stimulate economic growth. But this proposal will test Zambia’s ability to balance economic imperatives with its environmental commitments.
As businesses and industries continue to suffer from the power deficit, Zambia faces mounting pressure to diversify its energy sources while mitigating the impacts of climate change. Whether coal-fired power becomes a viable solution remains to be seen, but the stakes for the nation’s economy and energy security have never been higher.
