THE Energy Regulation Board (ERB) has approved two power purchase agreements (PPAs) which will give Zesco access to additional electricity estimated at 170 mega watts (MW).
The ERB has also approved 26 licences for enterprises in the petroleum and solar sub-sectors in accordance with the Energy Regulation Act, chapter 436 of the Laws of Zambia.
ERB communications officer Kwali Mfuni said in a statement issued in Lusaka yesterday that the PPAs and licences were approved on Tuesday.
Ms Mfuni said the approval of the PPAs will enable Zesco Limited enter into agreements with Itezhi-Tezhi Power Corporation (ITPC) and Ndola Energy Company (NEC).
“The two power plants will in the short and medium terms mitigate the power deficit currently being experienced in Zambia, especially at peak hours. The plants will increase installed capacity to above 1,900 MW,” she said.
ITPC is jointly owned by Tata Africa Holdings of India and Zesco Limited, while Ndola Energy Company is a subsidiary of Concordia Energy Group of Mauritius.
ITPC will construct a hydro power plant in Itezhi-Tezhi and Ndola Energy Company a heavy fuel oil powered thermo plant on the Copperbelt.
Ms Mfuni said the construction of both plants will begin this year at the estimated cost of US$230 million and US$65 million, respectively.
She said ITPC is expected to generate 120 MW while the Ndola Energy Company will supply about 50 MW.
Zesco’s peak demand currently stands at about 1,580 MW, while available generation capacity stands at about 1,401 MW and installed capacity stands at about 1,739 MW.
Ms Mfuni said as the new generation capacity will exceed the projected peak demand, Zambia will export excess power to some neighbouring countries, which are also affected by the power deficit.
“The plants will help to ease the country’s ever-increasing load shedding by allowing consumers to access reliable electricity supply. The projects may also enable Zesco to extend the national grid to remote parts,” Ms Mfuni said.
Access to electricity in rural areas currently stands at only three percent.
On the approved licences, Ms Mfuni said they are intended to ensure security of supply of energy products and services in various parts of the country.
“Of the 26 approved , 25 are to enterprises in the petroleum sub-sector and one is for the manufacturing, installation and supply of solar energy systems by Development Technology Limited of Lusaka,” Ms Mfuni said.
She said the new licences are for the importation of lubricants, retail of petroleum products and transportation of petroleum products.
Ms Mfuni said additionally, approval has been granted for renewal of sixteen licences in the petroleum sub-sector.
She said ERB will continue to enforce the law by ensuring that only licenced entities operate in the energy sector because it is an offence for a company to engage in energy enterprise without a licence.
[Zambia Daily Mail]
