Zambia Reviewing Proposal To Construct $900 Million Coal Plant amid Power Crisis

The project would generate 600 megawatts to help offset severe electricity shortages caused by a historic drought impacting hydropower generation.

By Labari AI 2 Min Read
Kariba Dam in Zambia. Image Credit: Africa Fixers

Zambia is considering a proposal by the Chinese-owned Wonderful Group of Companies to build a $900 million coal-fired power plant.

The project would generate 600 megawatts to help offset severe electricity shortages caused by a historic drought impacting hydropower generation.

Why it matters

Zambia relies on hydropower for 85% of its electricity. The unprecedented dry spell has left households and businesses enduring outages lasting over a day, with industries like copper mining—key to the economy—forced to import expensive power to sustain operations.

Context

  • The drought is the worst in more than a century, severely curbing hydroelectric output.
  • Wonderful Group, which manufactures ceramic tiles and fertilizer, has seen its production slashed by up to 40% due to the energy crisis.

The proposal

  • Wonderful Group plans to invest in a 600-megawatt coal-fired plant as an alternative energy source.
  • Zambia has approved only three coal-fired plants to date, including two this year, signaling a cautious shift away from its clean-energy reliance.

What they’re saying

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 President Hakainde Hichilema.

What’s next

If approved, the coal plant could provide much-needed energy stability, but it raises concerns about Zambia’s climate commitments and the environmental costs of expanding coal power.

Source: Bloomberg


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