Zambia Considers Constructing $900 Million Coal Power Plant Following Hydropower Failure Crises

Zambia is considering a proposal to construct a $900 million coal-fired power plant to address severe electricity shortages caused by declining hydropower generation.

The proposed 600-megawatt project, backed by the Chinese-owned Wonderful Group of Companies, marks a shift in the country’s energy strategy as it moves to pursue alternative energy sources.

The Wonderful Group, which manufactures ceramic tiles and fertilisers, said its output has been reduced by as much as 40 per cent due to the ongoing power crisis.

The Zambian government has also approved three coal-fired power projects, including two this year, to mitigate the crisis.

The energy shortages stem from the worst regional drought in over a century, drastically reducing water levels in Lake Kariba, and threatening power supplies from the Kariba Dam, which provides electricity to Zambia and Zimbabwe.

The lake’s water levels dropped to the lowest point in 65 years. The dam now operates at just 7 per cent of its 1,080-megawatt capacity, causing widespread blackouts and hampering economic growth due to extensive disruption to agriculture and energy production.

These challenges have exposed Zambia’s heavy reliance on hydropower, which accounts for 85 per cent of its electricity generation. While the country possesses large coal reserves, it only generates 13 per cent of its electricity from coal, exporting the majority of its supply.

In response to the crisis, Zambia and Zimbabwe are exploring alternative energy solutions, including coal and solar power projects, to ensure a stable and sustainable energy supply for the future.

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