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Taifa Gas announced a $100 million investment in power generation in Zambia through a joint venture with a local company, Delta Marimba. Through the investment, the first Liquefied Petroleum Gas (LPG) plant will be established in the northern part of the neighbouring country. The project will commence production 24 months after securing important approvals from the Zambian authorities including Environmental Impact Assessment (EIA)
Taifa Gas announced a $100 million investment in power generation in Zambia through a joint venture with a local company, Delta Marimba. Through the investment, the first Liquefied Petroleum Gas (LPG) plant will be established in the northern part of the neighbouring country. The project will commence production 24 months after securing important approvals from the Zambian authorities including Environmental Impact Assessment (EIA)
Taifa Gas will also use the entry for exploring more opportunities related to LPG utilisation, ranging from cooking gas to power solutions. Once operational, the power plant will add 100 megawatt to the Zambian national grid. The investment was primarily driven by favourable investment climate and policies created by Tanzania and Zambia presidents Samia Suluhu Hassan and Hakainde Hichilema.
Currently, Zambia’s energy demand stood at slightly above 3,000 megawatts as compared to an estimated 3,100 megawatts of production, noting that the country’s energy demand was still on the increase. The increase in energy demand ranges from growing needs from the consumer and the mining sector, especially after President Hichilema’s announcement targeting an increase in copper production from 890,000 tonnes per annum to three million annually.
The dramatic increase in copper and silver production was the core demand for an increase in power generation in the country. Zambia is an energy hub, exporting, and has the potential to export more energy to the Democratic Republic of Congo (DRC) which faces even more deficit. The country has another potential to export power to Zimbabwe which faces the deficit too. The implementation of the project in Zambia provides a wider export opportunity to different countries.
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The deal was announced about 40 days after Taifa Group and Generation Capital Limited (GCL) entered into a partnership with the state-owned Zanzibar Electricity Corporation (Zeco) to produce 180 megawatts on the islands. The power purchase agreement (PPA) for the first-ever utility-scale solar photovoltaic (PV) project in Zanzibar, which receives 125 megawatts from Tanesco, has a cost of Sh330 billion.
