Zambia Electricity Supply Corporation (ZESCO) has signed an agreement to purchase power from a 300MW coal power facility of EMCO Energy Zambia, the local entity of EMCO Resources.
The tariff agreed by ZESCO for the purchase of power from EMCO Energy Zambia’s plant is in the range of ZESCO’s earlier agreement with Maamba Collieries, a unit of India-based Nava Bharat (NBVL), reported Bloomberg, citing the African nation’s Mines Minister Christopher Yaluma.
Bloomberg also reported EMCO CEO Ajit Mishra said EMCO is constructing a 300MW coal-fired plant with an investment of around $700m.
The country’s power production capacity stands at 2,310MW.
In July, the Chamber of Mines was granted a judicial review over the increase in power tariffs.
Zambia is the second-largest produce of copper, after the Democratic Republic of Congo, and the mining firms use a total of 50% of the nation’s electricity resources.
The demand for power in Zambia has been increasing steadily, with the energy and mining sectors considered to be the primary growth drivers.
Recently, UK multinational banking firm Standard Chartered Bank invested $57m into Zambia’s energy sector in order to provide a boost to the country’s ailing sector.