ZESCO Limited has signed a 25-year Power Purchase Agreement (PPA) with Lufubu Power Company (LPC), securing 163 megawatts (MW) of clean hydropower for Zambia’s national grid.
Signed in July 2025, the $800 million deal aims to strengthen energy access and eliminate load shedding by 2030, in line with President Hakainde Hichilema’s electrification goals.
The plant will be built along the Lufubu River in the water-rich Northern Province, a region with more reliable rainfall.
ZESCO–LPC partnership to transform northern Zambia’s energy outlook
According to ZESCO spokesperson Matongo Maumbi, the Lufubu hydropower plant marks a strategic pivot toward a decentralised, renewable energy model.
The partnership reinforces grid reliability and supports industrial growth, mining expansion, and rural electrification in underserved regions.
ZESCO Managing Director Justin Loongo emphasised that the agreement aligns with Zambia’s long-term energy goals: “This partnership accelerates our mission to deliver affordable, reliable energy for all Zambians. It future-proofs the grid and lights up homes, farms, and factories across the country.”
Lufubu Power Company, a wholly owned Zambian private firm established in 2012, is developing the project.
The company was formed specifically to harness the hydropower potential of the Lufubu River basin, which flows through the districts of Mpulungu, Nsama, and Mporokoso.
LPC CEO Katai Kachasa said the agreement signals investor confidence in Zambia’s clean energy ambitions.
“This PPA proves the private sector is ready to deliver transformative infrastructure. We’re proud to help position the north as a renewable energy hub and support Zambia’s Vision 2030,” he noted.
Hydropower to strengthen grid and fuel economic growth
The $800 million plant will be built on the Lufubu River and is expected to contribute approximately 5% of Zambia’s total installed electricity capacity once operational.
There is also potential for capacity expansion as demand rises, particularly from the mining and agriculture sectors.
One of the project’s major advantages lies in its strategic northern location.
Thanks to stable rainfall and river flow, the plant will operate more efficiently, reducing the risk of climate-related energy disruptions.
ZESCO plans to connect the facility to the national grid using a new 330kV transmission line running from Mporokoso to Kasama, a move that will enhance grid reliability and improve electricity access in remote areas.
A renewable future for Zambia
Beyond energy generation, the Lufubu hydropower project is expected to unlock economic opportunities in Northern Province, create jobs, and attract new investments.
It supports the government’s goal of integrating the province into the national energy framework and marks a shift toward private sector-led development in Zambia’s power industry.
With its scalable design and renewable backbone, the Lufubu project positions Zambia to meet surging electricity demand while advancing its environmental and energy access goals.
As Kachasa said, “This isn’t just about power, it’s about powering progress.”