- In early 2024, CEC successfully commissioned the 60-megawatt Itimpi I Solar PV Plant
NKOMBO KACHEMBA
Lusaka
WHEN Zambia’s reservoirs began to recede during the 2023–2024 rainy season, the consequences rippled through the national grid.
With hydropower accounting for nearly 85 percent of the country’s energy mix, the prolonged drought, induced by El Niño, severely hampered electricity generation.
By May 2024, available national generation averaged 900 megawatts against a demand of 2,400 megawatts, leaving Zambia with a power deficit of 750 megawatts.
But even in this challenging environment, Zambia’s lifeblood, the mining sector, which consumes about half of the country’s electricity continued to run.
Behind this remarkable resilience stood Copperbelt Energy Corporation (CEC), whose strategic foresight, regional integration, and diversification in renewable energy ensured the mines kept operating, safeguarding thousands of jobs and billions in export revenue.
Sustaining the lifeline of the economy
Mining remains Zambia’s primary economic driver, contributing about 70 percent of foreign exchange earnings.
When the drought hit, the fear of widespread shutdowns was palpable. Yet, CEC’s agility in sourcing and delivering power helped avert a crisis.CEC chief executive officer Owen Silavwe says the company’s proactive measures were critical.
“We have been importing power since 2024 to close the supply gap created by reduced rainfall,” he explains. “We continuously assess mining power requirements and increase imports to make sure every gap is covered.”
By tapping into regional power markets and leveraging Southern African Power Pool (SAPP), CEC imported electricity from neighbouring countries in the region.
This regional integration, a cornerstone of CEC’s business strategy, ensured continuity of mining operations even as domestic hydro generation faltered.
Innovative sourcing and reliable delivery
CEC’s supply strategy during the drought was a masterclass in operational resilience. The company diversified its power sources, working closely with
ZESCO, Dangote Cement’s surplus generation, its own subsidiary CEC Renewables, and multiple regional suppliers. Lubambe Copper Mines’ manager for projects and energy, Bernard Alaunda, testifies to this reliability:
“When the drought began, we entered into a supplementary power agreement with CEC.
They immediately responded, and since then, we haven’t faced any challenges. CEC has been equal to the task.”
Even at the height of national load management, CEC maintained uninterrupted power to its mining clients, supplementing local supply with imported power. To
further enhance reliability, the company kept an 80-megawatt emergency generation capacity, a crucial buffer that protected critical mining infrastructure and operations.
Building for the Future: Renewables and Transmission Expansion
Beyond short-term crisis management, CEC’s strategic investments in renewable energy and infrastructure expansion are reshaping Zambia’s energy future.
Through its subsidiary, CEC Renewables, the company is spearheading one of the largest private renewable portfolios in the country.
In early 2024, CEC successfully commissioned the 60-megawatt Itimpi I Solar PV Plant. Construction is underway on Itimpi II (136MWp), alongside two additional projects, Fitula (12.5MWp) and Garneton South (25MWp) set to reach financial close in early 2025.
Once commissioned, these projects will bring CEC’s solar generation capacity to 230 megawatts, significantly boosting Zambia’s renewable base and supporting the government’s clean energy agenda.
The development is financed partly through Green Bonds, with CEC raising US$96.7 million in the second tranche of its US$200 million Green Bond Programme in 2024.
CEC board chairperson London Mwafulilwa underscores this commitment:
“Despite the challenges, CEC demonstrated resilience by implementing strategic measures to maintain reliable power supply. Our focus on sustainability positions us well for future opportunities, especially under ongoing energy sector reforms such as open access.”
Leveraging policy reforms and regional trade
The liberalisation and open access reforms in Zambia’s energy sector are reshaping how companies trade power.
CEC, as a leading transmission and distribution company, has embraced these changes as growth opportunities.
CEC head of power trading Mulenga Bwalya explains:“We are expanding the Zambia–DRC interconnector to increase cross-border transfer capacity. As regional demand rises, particularly in the DRC mining market, this will unlock new trade and investment potential.”
The upgrade of the Zambia–DRC interconnector through the installation of voltage support equipment has already increased transmission capacity, paving the way for competitive regional power trade.
CEC’s vision aligns with Southern African Development Community’s (SADC) agenda to enhance regional energy security and cross-border electricity flows.
This strategic positioning allows CEC not only to sustain Zambia’s industrial base but also to drive regional energy integration, a critical pillar of African Continental Free Trade Area (AfCFTA) ambitions.
Financial resilience amid challenges
Despite the drought’s economic impact, CEC recorded revenue of US$547.7 million in 2024, a 43 percent increase from the previous year, driven by growth in regional and local power sales.
While profits dipped by 30 percent due to one-off adjustments, the company’s balance sheet remains robust, providing room for continued investment in renewables, transmission, and modernisation projects.
CEC’s resilience in maintaining supply to Zambia’s most power-intensive industry underpins its strategic importance to the national economy.
Its financial prudence and capacity expansion plans ensure that it remains a cornerstone of Zambia’s energy landscape.
Partnerships That Power Prosperity
Mining companies continue to acknowledge CEC’s pivotal role. Mopani Copper Mines Chief Executive Officer, Charles Sakanya, credits the company for sustaining operations:“CEC ensured we had a stable supply, even if imported power came at a higher cost.
Without that, we would have faced production shutdowns and job losses. CEC’s interventions have been vital in keeping the industry running.”
Public Policy Institute of Zambia (PPI-Z) echoes this sentiment. Its president, Fabian Chewe, says CEC’s reliability during the crisis was key to stabilising Zambia’s economy:
“The mining sector continued operating because of consistent supply from CEC. This helped sustain foreign exchange earnings and confidence in the Kwacha. CEC’s investments in renewables also signal confidence in Zambia’s growth trajectory.”
Beyond business: Powering communities
CEC’s impact extends beyond the industrial grid.
Through its Corporate Social Responsibility (CSR) programmes, the company has supported education, health, and sports on the Copperbelt.
Initiatives include support to the Copperbelt University Innovation Challenge, street lighting projects in Kitwe, and sponsorship of Power Dynamos Football club, reflecting CEC’s belief that sustainable development is rooted in community empowerment.
The road ahead
As Zambia transitions toward a more diversified energy mix, CEC stands at the forefront of that transformation. Its blend of innovation, private investment, and policy alignment showcases how a private utility can anchor national and regional growth.
The drought may have tested Zambia’s power resilience, but through strategic foresight and regional collaboration, CEC ensured that the country’s mines and by extension, its economy, stayed powered, productive, and prepared for the future.
