Independent power company Globeleq has entered a share purchase agreement (SPA) with Norwegian investment fund Norfund to acquire a 51% equity stake in Zambia’s Lunsemfwa Hydro Power Company (LHPC).
The remaining 49% of LHPC will continue to be held by Wanda Gorge Investments, an infrastructure investment company based in Zambia.
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The agreement represents a milestone for Globeleq’s entry into the Zambian energy market, enabling the company to offer solutions to a variety of energy-intensive consumers in the public and private sectors.
It also represents Globeleq’s first hydropower venture on the African continent, further strengthening the company’s already diverse renewable energy portfolio, which encompasses solar, wind, battery storage (BESS), solar plus BESS hybrids and geothermal plants.
Zambia is central to Globeleq’s expansion plans, where the company is actively developing projects encompassing more than 400MW of solar and wind power capacity along with BESS systems and hybrid solutions.
Among these initiatives is the 54 megawatts peak (MWp) Kafue solar project initiated under the GETFiT Zambia programme.
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By GlobalDataThe transaction will be completed in the second half of 2025.
Globeleq’s CEO Jonathan Hoffman commented: “We are excited about this opportunity to enter the Zambian market. LHPC’s established team, operations and trading capabilities combined with our extensive experience in Africa, create a strong platform to support Zambia’s broader energy objectives and deliver solutions to a range of energy consumers in the region.”
LHPC, based in Kabwe in Zambia’s Central Province, plays an integral role in the region’s power supply.
The company operates two hydroelectric plants with a total capacity of 56MW, and is also developing a 20MW solar project.
It currently sells electricity to public utilities such as the Zambia Electricity Supply Corporation, and private entities such as the Copperbelt Energy Corporation and Jubilee Metals.
LHPC also holds a valuable Southern African Power Pool (SAPP) trading licence.
Norfund investment director Øystein Øyehaug stated: “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. With more than 20 years of experience operating in Africa, we are confident that Globeleq is the right fit to lead the LHPC into its next chapter.”
In early 2025, Pele Energy Group (PEG) secured R575m ($30.9m), with support from Nedbank and Norfund, to expand its renewable energy portfolio throughout South Africa and the wider African continent.
