Ndola, Zambia - June 20, 2024 — Ndola Energy Company Limited (NECL), a subsidiary of GL Africa Energy, today restarted its 105 megawatt (MW) thermal power plant, injecting crucial electricity supply into the national grid and supporting Zambia's drive to diversify its energy mix.

The restart comes after successful negotiations between Ndola Energy and the Zambian government to secure an affordable fuel supply for power generation. NECL will receive 16.5 million litres of diesel through the Tazama pipeline to fire up the plant, which had been inactive since 2021 due to the closure of its traditional fuel source, the Indeni Oil Refinery.

The ceremony was graced by guest of honour Minister of Energy, Hon. Peter Chibwe Kapala, who announced that the Government has implemented an innovative cost pass-through tariff mechanism approved by the Energy Regulation Board. This model eliminates the need for government subsidies by having a specified consumer cover the fuel expenses through a slightly higher tariff.

"The return of Ndola power plant's output to the national grid is a testament to the government's commitment to strengthening the energy sector and achieving a diversified energy mix," said Hon. Kapala. "This restart addresses the current energy crisis, providing reliable electricity and reducing our dependence on hydroelectric power sources affected by drought."

The Minister for Information and Media and Chief Government Spokesperson, Hon. Cornelius Mweetwa who was also in attendance said,

“As we mark this significant milestone, the government of Zambia reaffirms its dedication to continue driving forward its energy diversification agenda and delivering sustainable energy solutions for the nation. We shall continue collaborating with the private sector and other partners to secure Zambia’s energy future for economic development. Through strategic collaborations and forward-looking initiatives, Ndola Energy is charting a new course for sustainable energy development in Zambia.”

Brian Mushimba, PhD., CEO of Power at GL Africa Energy, highlighted the plant's role in driving sustainable energy development through strategic partnerships. "Restarting this plant demonstrates what we can achieve through collaboration and collective action. Ndola Energy was established to diversify our energy sources beyond an over-reliance on hydro."

Dr. Mushimba added, "Our forthcoming plans include implementing a hybrid system by integrating a 200MW solar plant alongside the thermal facility. This innovative approach will enhance our energy output, position us as sustainable energy leaders, and ultimately reduce consumer tariffs. This restart is about pioneering a model for sustainable public-private partnership in Zambia's energy sector. Our longer-term ambition is to produce over 600MW from a diversified energy mix across multiple sites in Zambia by 2030, driving economic growth, job creation and improving lives."

Engagement is already underway with the Ministry of Energy on the solar project's feasibility, with the first 50MW targeted to be online within twelve months once outstanding power purchase negotiations with ZESCO are finalised.

Hon. Mweetwa affirmed the government's commitment, stating: "As we mark this milestone, Zambia reaffirms its dedication to driving the energy diversification agenda and delivering sustainable solutions. We will continue collaborating with the private sector to secure our energy future for economic development."

Both Minister Kapala and Mushimba commended the collaboration between government agencies, ZESCO, regulatory authorities and Ndola Energy's investor GL Africa Energy in achieving this milestone. They highlighted the conducive policy environment, including the Renewable Energy Feed-in-Tariff program, which has spurred investments by independent power producers in driving Zambia's energy transition.

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