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HH commissions Maamba II to step up response to Zambia’s energy crisis

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Eddie Kennison, an American professional footballer, inspirational and motivational speaker, in his famous and rare quotes said, “When opportunity presents itself, don’t be afraid to go after it and Robert Redford also said “problems can become opportunities when the right people come together” 

This is exactly what the Maamba Energy Limited (MEL) of Sinazongwe District of Southern Province has done, taking advantage of the opportunity that has presented itself as the country continues to grapple with the impact of the El Nino drought which has had a significant effect on the energy sector among others.

MEL formerly Maamba Collieries Limited, is one of Zambia’s largest Independent Power Producers ( IPPs) operating Zambia’s first coal- fired Thermal Power Plant and the nation’s coal mine.

MEL operates a mine-mouth integrated 300 MW ( 2 x 150 MW units) modern , eco-friendly coal – fired power plant and is now undertaking an expansion plan to double capacity to 600 MW.

According to data obtained from the Ministry of Energy,  as a result of the serious drought that hit the country this this year, as at May 2024, the country had a deficit of 750 Megawatts of electricity and this is mainly due to the fact that the country heavily relies on hydroelectric power which accounts for about 85% of installed generation capacity, and the drought has greatly reduced water levels in reservoir dams, leading to a severe decrease in electricity generation. 

“As a result of the poor hydrology, current available average generation as dictated by water availability in the reservoirs is about 900 Megawatts against the average demand of 2,400 Megawatts resulting in a power deficit of 750 Megawatts as at May 2024,” said Energy Minister Makozo Chikote.

The current electricity deficit has forced the Zambia Electricity Supply Corporation ( ZESCO) to initiate a 12-hour daily rotational power load management. 

Maamba Energy Limited has responded positively and its contribution will be deemed a significant contribution to addressing the demands for electricity through the expansion project of the thermal plant that will bring on board an additional 300 Megawatts.

On June 26 this year, President Hakainde Hichilema urged the private sector to capitalise on the current electricity deficit by investing in new power generation projects.

President Hichilema said with the recently launched open access policy in the energy sector, the private sector is encouraged to seize the opportunity for investment in electricity generation and supply.

In his address to the media at State House, President Hichilema said that while the government is implementing measures to address the crisis, all stakeholders must collaborate to find sustainable solutions.

The President announced that among the initiatives, the government has partnered with Maamba Energy Limited to begin construction of the second 300-megawatt thermal-power plant, with US$90 million secured for initial works. 

President Hichilema assured the people of Zambia that the Government is committed to ensuring uninterrupted power supply, given the current 750-megawatt deficit caused by low water levels in hydroelectric generation following inadequate rainfall.

Living up to his promise and in showing commitment to improving the lives of Zambian citizens,  President Hichilema was guest of honour at an historical ground-breaking ceremony of the Phase II thermal power plant in Maamba.

Officiating at the event, President Hichilema said the launch of the project that will be completed in July 2026 signifies the government’s commitment to finding lasting solutions to the energy crisis in the country that has been induced by drought.

President Hichilema said the project means a lot to the economic growth of the country and to the people of Zambia as it will answer the challenges the small and medium business entrepreneurs are facing.

“We want 10, 000 Megawatts generated from thermal power to supply to sectors like mining 24/7. We are working towards that through Public Private Partnerships. Thank you Maamba NAVA, and government partnership for this project,” President Hichilema said.

He said he was delighted that the Phase II of the thermal plant expansion project has commenced because it is part of the vision towards the realisation of attaining energy sufficiency in the country and the region.

“This project symbolises our resolve to energy insecurity instigated by drought. We all must do everything possible to support it, energy insecurity is national insecurity,” he said.

President Hichilema said the expansion project will help reduce dependency on hydropower generation which is rain water based.

” With thermal power generation we will be able to run the economic activities even in drought situations, ” he stated.

Mr Hichilema said he has given matching orders to institutions such as Industrial development Corporation, ZCCM IH , ZESCO and other economic support organisations to work on all outstanding issues that are limiting the development process.

He appealed to MEL  management to ensure local people are employed and further commended the company for undertaking various activities through Corporate Social Responsibility (CSR).

Mr Hichilema also appealed to the traditional leaders in the project area, Chief Cooma and Chieftainess Sinazongwe to fully embrace the investment that has come into their area.

President Hichilema asked the two traditional leaders to work in harmony with MEL to spur development in the area.

He advised that any misunderstandings between the investor, traditional leaders and the local people should be resolved amicably so as not to affect development.

President Hichilema is optimistic that Sinazongwe Town Council will benefit greatly from the development taking place at MEL.

The President anticipates revenue collection by the local authority to increase because of the investment coming into the town from investors such as the MEL.

“Sinazongwe Town Council, the coming of this investment means more revenue for you,” said President Hichilema.

Energy Minister Makozo Chikote who could not hide his excitement over the project  said the investment will change the energy landscape of the energy sector in the country.

“This is a step towards an actualization of the vision to ensure energy sufficiency in the country,” said Mr Chikote.

He said the ministry of Energy will ensure the smooth implementation of the project.

MEL board member Ashok Devineni assured that the project offers a domestic energy solution to the country. 

Chieftainess Sinazongwe said she is happy that the project will significantly benefit the district through employment creation and energy sufficiency in the district.

She stated that she is aware MEL,  through its CSR has implemented a number of programmes that include a training centre where both newly employed staff and youths are trained.

MEL Chief Executive Officer Cyrus Minwalla said the Training Centre is affiliated to TEVETA focusing on the local youths who train in Electrical Technology, Metal Fabrication and Welding and Mechanical Fitting. The Centre is a Grade 1 institution (as per TEVETA standards), with Students paid K800 stipend on monthly basis. The centre boasts of advanced training equipment, such as welding simulator; probably the only training institution with such an equipment in Zambia.

Lt. Col. Minwalla (RTD) said the centre has very experienced training instructors (both local and expatriates) adding that Students are taught beyond TEVETA prescribed curriculum in order to improve their chances of getting employment, as demonstrated recently when 11 graduates were recruited by FQM.

Lt. Col Minwalla pointed out that MEL also runs skills development training programme in carpentry and tailoring for community members in partnership with Maamba Youth Project (under Catholic church)

“MEL through its CSR programme has set up a community library in the Township to provide an ideal study location for students in various grades. The library is well stocked and carters for all study needs (access is free). The facility provides a very conducive place to prepare for examinations. It is anticipated that with this facility, examination results will greatly improve,” said Lt. Col. Minwalla.

The Thermal power plant Chief thanked the government for creating a conducive environment for the private sector to conduct business, and  President Hichilema for his personal commitment to ensure Phase II of the  thermal plant project is actualised.

In June this year, MEL reached an agreement with Anchor Lenders for the financing of the construction and installation of an additional 300 Megawatts power plant.

MEL has already signed a 20-year Power Purchase Agreement with ZESCO for its phase II project.

In the same month of June t, President Hakainde Hichilema urged the private sector to capitalise on the current electricity deficit by investing in new power generation projects.

President Hichilema is certain that the partnership between government and  Maamba Energy Limited for commencement of construction of the second 300-megawatt thermal-power plant, with 90 million U.S. dollars secured for initial works, will change the country’s energy landscape  and development trajectory.