ZESCO Limited recently signed a 25-year Power Purchase Agreement (PPA) with Lufubu Power Company (LPC) to secure 163MW of baseload hydropower from a new plant in the water-rich Northern Province.
Amidst the ongoing efforts to address Zambia's current electricity insufficiency and meet growing national demand, the project will noticeably impact on national energy security and economic growth, and advances President Hakainde Hichilema’s vision of universal electricity access in the soonest time possible. The Lufubu hydropower project arrives at a critical time, when the government is accelerating various solutions to bridge the energy deficit, eliminate load shedding, and achieve 100% electricity access by 2030.
By harnessing the northern circuit’s abundant and reliable rainfall—a region historically underutilized for large-scale hydropower—the project aligns with the government’s strategy to maximize Zambia’s renewable energy resources, diversify generation, and reduce reliance on the drought-prone southern regional dams. President Hichilema’s administration has prioritized private sector partnerships to fast-track infrastructure development, and this agreement exemplifies the catalytic role of such collaborations in driving sustainable progress.
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.
ZESCO Managing Director, Eng. Justin Loongo
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.
LPC CEO, Mr. Katai E. Kachasa
The Lufubu Hydropower Plant, with an estimated investment exceeding USD 800 million (ZMW 23.7 billion), will be constructed on the Lufubu River across Mpulungu, Nsama, and Mporokoso Districts. Upon completion, it will contribute approximately 5% to Zambia’s installed capacity, with potential to double output in line with growing demand. The plant’s strategic northern location ensures high operational efficiency due to consistent hydrology, directly supporting industrialization, mining sector growth, and rural electrification.
ZESCO will connect the plant to the national grid via a new 330kV transmission line from Mporokoso to Kasama, reinforcing grid reliability and enabling power distribution to underserved regions. This infrastructure is a cornerstone of the government’s plan to unlock economic opportunities in Northern Province and integrate it into the national energy framework.
The project underscores Zambia’s shift towards a decentralized, private sector-driven energy model. By capitalizing on the north’s water resources, it not only addresses immediate power shortages but also lays the groundwork for a regional hydropower hub, creating jobs and stimulating ancillary industries. With its scalable design, the plant positions Zambia to meet rising demand from mining, agriculture, and urbanization while advancing climate action through clean energy.