Globeleq Partners with Norfund to Purchase Majority Stake in Zambian Hydro Power Company
Globeleq Expands Into Zambia's Renewable Energy Sector
Globeleq, a prominent independent power producer in Africa, has recently made headlines by signing a share purchase agreement with Norfund, Norway's development institution. This strategic agreement will allow Globeleq to acquire a 51% stake in Lunsemfwa Hydro Power Company (LHPC), an organization pivotal in Zambia's renewable energy landscape.
Overview of Lunsemfwa Hydro Power Company
Lunsemfwa Hydro Power Company operates two hydroelectric power stations that generate a total of 56 megawatts (MW) of electricity and is currently in the process of developing a new solar photovoltaic (PV) project that will add another 20 MW to its electric output. The company sells power primarily to the Zambia Electricity Supply Corporation, along with private clients such as Copperbelt Energy Corporation and Jubilee Metals. Notably, LHPC also holds an electricity trading license through the Southern African Power Pool (SAPP).
This agreement signifies a crucial advancement for Globeleq's entry into Zambia’s burgeoning energy sector, where the demand for electricity continues to rise. The company's unique position will enable it to cater to both public and private energy needs within the region.
Significance of the Agreement
Globeleq's acquisition represents its first major venture into hydropower in Africa, diversifying its existing renewable portfolio. The company already manages a variety of energy sources including solar, wind, battery energy storage systems (BESS), hybrid solar installations, and geothermal power plants. By entering the Zambian market, Globeleq aims to contribute to a sustainable energy future for the country.
Jonathan Hoffman, the CEO of Globeleq, expressed enthusiasm regarding this new venture: "We are pumped about this opportunity to enter the Zambian market. The established infrastructure and operational capability of LHPC, combined with our strong experience across Africa, will help bolster Zambia's broader energy objectives and facilitate tailored solutions for energy consumers."
Future Plans and Developments
Zambia has been identified as a priority within Globeleq's growth strategy, where the firm is spearheading the development of a 400 MW+ greenfield portfolio. This portfolio encompasses projects across various renewable sources, including solar and wind energy, all aimed at accelerating Zambia's transition to clean energy solutions.
The agreement is expected to close in the latter half of 2025, setting the stage for significant advancements in Zambia’s energy infrastructure. The integration of Globeleq’s expertise is anticipated to boost the operational efficiency and sustainability of LHPC, providing a promising outlook for energy consumers in Zambia.
Partnership with Norfund
Norfund plays a crucial role in this partnership, having committed to enhancing the operational performance of LHPC. Øystein Øyehaug, an investment director at Norfund, highlighted the significance of this collaboration: "Finding the right investor was our primary goal, and with Globeleq's extensive background in the African market, we believe we have found a perfect match for LHPC's growth and operational enhancement."
Conclusion
The alliance between Globeleq and Norfund marks a significant step towards solidifying Zambia's renewable energy capabilities. As the demand for sustainable energy grows, partnerships like these are essential for unlocking the potential of the country's energy sector. The anticipated developments following this agreement are expected to play a vital role in the region's energy landscape, paving the way for innovative solutions and enhanced efficiency in energy production and distribution.