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ZESCO Limited has signed a 25-year Power Purchase Agreement (PPA) with Lufubu Power Company (LPC) to secure 163 Megawatts (MW) of baseload hydropower from a new plant to be developed in Zambia’s water-rich Northern Province.
The project is expected to significantly bolster national energy security, stimulate economic growth, and support President Hakainde Hichilema’s vision of achieving universal electricity access in the shortest time possible.
According to a statement issued on Tuesday by ZESCO Spokesperson, Matongo Maumbi, the agreement comes at a time when the government is accelerating efforts to address the country’s energy deficit, eliminate load shedding, and meet growing electricity demand.
Maumbi said the Lufubu hydropower project marks a strategic shift by tapping into the underutilized but rain-abundant northern circuit, aligning with government plans to diversify the power mix and reduce dependence on drought-prone southern dams.
“By harnessing the northern circuit’s reliable rainfall, this project supports Zambia’s renewable energy agenda and positions the country to build a more resilient and sustainable energy system,” he said.
Maumbi added that the agreement reflects the government’s commitment to private sector partnerships as a driver of infrastructure development and economic transformation.
ZESCO Managing Director, Justin Loongo, said the partnership with LPC strengthens the company’s mission to deliver affordable and reliable energy to all Zambians.
“By leveraging the north’s untapped hydropower potential, we are future-proofing the national grid against climate variability, empowering industries, and lighting homes across the country,” said Loongo.
LPC Chief Executive Officer, Katai Kachasa, also underscored investor confidence in Zambia’s renewable energy sector, stating that the PPA demonstrates the private sector’s readiness to support national development goals.
“LPC is proud to partner with ZESCO to deliver a scalable, climate-resilient project that will transform communities, attract new investment to the north, and propel Zambia toward Vision 2030,” Kachasa said.
He revealed that the plant would be constructed on the Lufubu River, spanning Mpulungu, Nsama, and Mporokoso Districts, with an estimated investment of over US$800 million.
Once operational, it will contribute approximately five percent of Zambia’s installed electricity capacity, with potential for expansion to meet future demand.
Kachasa emphasized that the plant’s northern location offers high operational efficiency due to consistent water flows, directly supporting industrial growth, mining operations, and rural electrification.
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He added that ZESCO will connect the plant to the national grid via a new 330kV transmission line from Mporokoso to Kasama.
Kachasa stated that this would not only reinforce grid stability but also improve electricity access in underserved regions.
“The infrastructure forms a key pillar of the government’s strategy to unlock economic potential in Northern Province and better integrate it into the national energy framework,” Kachasa said.
He noted that the project exemplifies Zambia’s shift toward a decentralized, private sector-led energy model, capitalising on regional water resources to address current energy shortages and pave the way for a northern hydropower hub.
“With its scalable design, the Lufubu Hydropower Plant positions Zambia to meet the rising demand from mining, agriculture, and urbanisation, while supporting climate goals through clean, renewable energy,” Kachasa said.
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