- Globeleq, an independent power company in Africa, has signed a share purchase agreement with Norfund.
- Zambia is a “priority country” for Globeleq’s growth strategy.
Globeleq, an independent power company in Africa, has signed a share purchase agreement with Norfund, the Norwegian development institution. This is for the proposed acquisition of a 51 per cent equity stake in the Zambian entity, Lunsemfwa Hydro Power Company (LHPC).
The remaining 49 per cent of LHPC is owned by Wanda Gorge Investments, a Zambian-based infrastructure investment company. LHPC was the first independent power producer in Zambia.
The company operates two hydropower plants, Lunsemfwa and Mulungushi, in Central District in Zambia with a total installed capacity of 56 MW. The company is also constructing a 20MW solar PV project.
Based in Kabwe in Zambia’s Central Province, LHPC sells power to the Zambia Electricity Supply Corporation through a power purchase agreement and a portfolio of private customers, which include Copperbelt Energy Corporation and Jubilee Metals. It also holds a Southern African Power Pool (SAPP) electricity trading license.
This acquisition also represents Globeleq’s first investment in hydropower in Africa, further diversifying its renewable portfolio, which includes solar, wind, battery energy storage (BESS), hybrid solar plus BESS, and geothermal power plants.
Zambia is a “priority country” for Globeleq’s growth strategy. The company is leading the development of a 400MW+ greenfield portfolio of solar, wind power, BESS, and hybrid projects, including its 54MWp Kafue solar project awarded under the GETFiT Zambia program.
The completion of the transaction is expected to be finalised in the second half of 2025.
Øystein Øyehaug, Investment Director at Norfund, noted, “In seeking a partner for this transition, our priority was to find the right investor, one with the capability to manage well, enhance operational performance, elevate standards, and unlock the long-term growth potential of LHPC.”
He said, “With over 20 years of experience operating in Africa, we are confident that Globeleq is the right fit to lead the LHPC into its next chapter.”