Globeleq Completes Strategic Acquisition in Zambia's Energy Sector to Boost Hydropower Investments

Globeleq Expands Its Energy Portfolio in Zambia

Globeleq, Africa's foremost independent power company, has successfully acquired a 51% stake in Lunsemfwa Hydro Power Company (LHPC), signaling a pivotal move into Zambia's energy market. This acquisition from Norfund, a Norwegian development finance organization, opens new avenues for energy supply, ensuring a robust entry into the South African Power Pool (SAPP).

Overview of Lunsemfwa Hydro Power Company

Lunsemfwa Hydro Power Company operates two hydroelectric power stations with a total capacity of 56 MW and is actively developing a 27 MWp solar photovoltaic project. Its future plans include an ambitious pipeline, featuring a proposed 200 MWp solar portfolio and various hydropower expansions. Based in Kabwe, Zambia, LHPC provides electricity to ZESCO, the national utility provider, and serves private companies including Copperbelt Energy Corporation and Jubilee Metals through a long-term power purchase agreement (PPA).

Having secured a SAPP trading license, LHPC is on a path to engage in regional energy trade, further enhancing the utility of its hydro and solar projects.

Strategic Importance of the Acquisition

For Globeleq, this acquisition is not just a mere investment in hydropower; it is a strategic move to complement its existing renewable energy portfolio, which includes solar, wind, battery energy storage systems (BESS), and geothermal assets. The potential for active electricity trading within the SAPP reinforces this newly acquired foothold in Zambia, allowing Globeleq to optimize its energy supply and trading capabilities.

Globeleq has previously recognized Zambia as a priority market, establishing a new office in Lusaka to enhance local project development, partnerships, and commercial activities. Besides the acquisition of LHPC, the firm is also making strides with other key projects in Zambia. For example, the Kafue Solar project, with a capacity of 40 MWac, is expected to reach its financial close and commence construction in the first quarter of 2026.

The progress of this solar project follows the successful signing of critical project agreement conditions, including agreements with ZESCO and a collaborative framework with the Zambian government, alongside financing from notable partners British International Investment and FMO.

Additionally, Globeleq is progressing with the innovative Leopard's Hill project, a dual technology initiative featuring a 150 MWac solar PV plant interconnected with a sizable 150 MW / 600 MWh battery system. This project is also targeted for financial closure later this year.

Voices from Leadership

Jonathan Hoffman, the CEO of Globeleq, expressed enthusiasm regarding the acquisition, stating: "This partnership is a major step forward for Globeleq and Zambia's energy sector. LHPC's strong operational base and ambitious growth plans align with our strategy, providing an operational entry into Zambia and active trading in SAPP. This integration with our project pipeline enhances our capacity to deliver tailored power solutions to significant regional consumers."

Conversely, Øystein Øyehaug, Investment Director at Norfund, highlighted the importance of finding a suitable partner to advance LHPC's long-term objectives. He articulated, "Globeleq possesses the expertise and resources that can heighten LHPC's performance and accelerate its future growth. This transaction not only supports our mission of promoting sustainable development but also improves access to clean energy in Zambia."

About Globeleq and Norfund

Globeleq has been at the forefront of electricity generation development in Africa since 2002, with a vast portfolio of independent power plants generating a total of 1,850 MW across eight nations. This includes 665 MW currently under construction and more than 2,000 MW in various stages of development. The company is owned by British International Investment and Norfund.

Norfund, on the other hand, operates as the Norwegian Investment Fund for developing countries, focusing on creating jobs and improving living conditions by investing in businesses that foster sustainable development, with a robust portfolio of investments in Sub-Saharan Africa, South/Southeast Asia, and Latin America.

In summary, Globeleq's strategic acquisition of Lunsemfwa Hydro Power Company marks a significant milestone in its commitment to expanding sustainable energy solutions while capitalizing on growth potential in Zambia's vibrant energy market.