- Zambia approved a 300 MW coal plant to address severe power shortages caused by the worst drought in 40 years, which is impacting hydroelectric production.
- The $400 million project, led by Maamba Collieries Ltd., aims to provide short-term relief but raises environmental concerns due to coal’s high greenhouse gas emissions.
- Experts urge Zambia to invest in renewable energy, such as solar and wind, to reduce future energy crises and reliance on fossil fuels.
Zambia approved the construction of a 300 MW coal-fired power plant to address an ongoing energy crisis caused by the worst drought in 40 years. The country relies on hydroelectricity for 85% of its power, but low water levels in its dams have led to severe electricity shortages, resulting in daily 12-hour power cuts.
Maamba Collieries Ltd., a Hyderabad-based company owned by Nava Ltd., will build the new coal plant to help offset the energy deficit. The project will double the output of the existing coal facility in Zambia’s southern region. Despite concerns over environmental impact, the government views the plant as a necessary step to address immediate energy needs.
Energy Minister Peter Kapala defended the decision, emphasising the urgency of the crisis. “We face an emergency, and this partnership with Maamba Collieries provides a short-term solution to maintain Zambia’s economy and industrial activities,” he said.
The project requires $400 million and is nearing financial close. The Zambian National Pension Fund is considering participating in the financing. However, obtaining funding for coal projects has become increasingly tricky as global banks, including Chinese state-owned lenders, reduce support due to environmental concerns.
Zambia continues to struggle with its over-dependence on hydroelectric power. Repeated droughts, worsened by climate change, weaken its energy production capacity. The ongoing drought, linked to El Niño, has drastically reduced electricity generation from the country’s dams.
As a result, Zambia’s government revised its 2024 economic growth forecast to 2.3%. The power shortages have disrupted industries and daily life, slowing the country’s economic recovery efforts. Officials hope the new coal plant will stabilise the energy supply in the short term.
Despite the immediate benefits, environmental concerns dominate the conversation. Coal significantly contributes to greenhouse gas emissions, and climate advocates warn that this move could deepen Zambia’s dependence on fossil fuels. They urge the government to focus on long-term solutions and avoid locking the country into unsustainable energy practices.
Experts call for Zambia to accelerate investments in renewable energy sources like solar and wind. Diversifying the country’s energy mix would reduce its vulnerability to future droughts and crises. Renewables offer a more sustainable path forward, helping Zambia mitigate the impact of climate change on its power supply.
The decision to build the new coal plant reflects the problematic choices Zambia faces as it balances energy security with environmental responsibility. While the plant offers short-term relief, it underscores the urgent need for Zambia to transition to cleaner energy solutions to ensure long-term stability and sustainability.