ZESCO Limited has signed a 25-year Power Purchase Agreement (PPA) with Lufubu Power Company (LPC) to secure 163MW of hydropower from a new plant in Zambia’s Northern Province.

The Lufubu Hydropower Plant will be built on the Lufubu River across the Mpulungu, Nsama, and Mporokoso Districts. It is expected to contribute about 5% to the country’s current installed electricity generation capacity, with potential for expansion in response to future demand. The estimated investment in the project exceeds US$800 million.

The agreement comes as Zambia continues to face electricity shortages and seeks to diversify its energy sources. The project is part of broader government efforts to eliminate load shedding and reach 100% electricity access by 2030.

ZESCO Managing Director Eng. Justin Loongo said the project fits into the national energy strategy: “This partnership with LPC accelerates our mission to provide affordable, reliable energy for all Zambians. By leveraging the northern circuit’s untapped hydropower potential, we are future-proofing our grid against climate variability, empowering industries, and lighting up homes – key pillars of President Hichilema’s New Dawn Agenda.”

The hydropower plant will be supported by a new 330kV transmission line connecting Mporokoso to Kasama, allowing integration into the national grid and improving power supply to underserved areas.

The government has emphasized private sector involvement in addressing Zambia’s energy needs. LPC CEO Mr. Katai E. Kachasa said: “This PPA is a testament to investor confidence in Zambia’s renewable energy future. LPC is proud to partner with ZESCO in delivering a scalable, climate-resilient project that will transform communities, attract further investment to the north, and propel Zambia toward its Vision 2030 aspirations.”

Officials say the plant’s location in a region with consistent rainfall makes it well-suited for hydropower. The project is expected to support industrial growth, mining, and rural electrification while contributing to Zambia’s renewable energy goals.

The Lufubu plant is part of Zambia’s ongoing shift toward a more decentralized and private sector-led energy development model.