CEC: EXPANDING AND POWERING
GROWTH T
he face of Zambia is changing fast. The mining boom is not only generating revenue and attracting investment into the region, it is also imposing increasing demands on the national power
infrastructure – and the Copperbelt Energy Corporation Plc (CEC) is playing its part in improving that infrastructure and ensuring that power supply will meet demand.
Formed in 1997 following the privatisation of the Zambia Consolidated Copper Mines (ZCCM), CEC has established three major capabilities in the mining-intensive Copperbelt region.
Firstly, it has 80MW of emergency gas turbine generation and supplies power to the mines of the region. Secondly, it owns and maintains the Copperbelt regional power transmission network for supplying the mines, which not only forms an integral part of the national transmission network and carries power to the urban population on behalf of the national power utility, ZESCO, but also links with SNEL, the national utility of the Democratic Republic of Congo (DRC). This interconnector forms the only export route for power from that nation. Finally, CEC has installed and maintains the Copperbelt regional element of the national fi bre-optic communications network.
Ongoing investment in infrastructure is a major theme of corporate strategy, and the company currently has two major projects under development. The fi rst project is one that will have a signifi cant impact on power security, not only within Zambia, but also throughout southern Africa.
The neighbouring DRC is a nation rich in possible future power- generation capacity, while the majority of those in the Southern Africa Power Pool (SAPP) are facing power shortages.
Since 1951, the DRC and Zambia have been linked by a single 220kV interconnector, the Zambian section of which is owned by CEC. “This line is important for the region,” explains Owen Silavwe, CEC’s Commercial Director, also overseeing the development phase of the DRC transmission-line project.
“The DRC has a surplus in terms of power generation, and the only route through which it can export power to the SAPP at the moment is through this interconnection. However, there has been no expansion in terms of capacity on this line since it was installed.”
Working together, CEC and SNEL are scheduled soon to begin construction work on two additional transmission lines and the supporting infrastructure. Not only will this increase the capacity of the interconnector from its current 260MW to a maximum of 750MW, but it will also safeguard the security of supply.
Although the new interconnector could theoretically handle 750MW, the aim is to limit the entire corridor to a capacity of 500MW. This will ensure good, fi rm trade on the line and safeguard it, such that if a fault develops on one of the lines, for example, the remaining two will still be able to handle the load without tripping.
The Zambian element of the project, which, at US$18 million, includes the construction of some 51 kilometres of dual transmission lines, along with signifi cant upgrades to the Michelo and Luano substations.
The Michelo substation supplies power to the mines around the town of Chililabombwe, while the Luano substation supplies power to the mines in Chingola and the surrounding areas, and both will link the new interconnector lines to the transmission network.
Two main contractors have been appointed for the project – KEC International of India and ABB OY of Finland.
The Company’s second major project will boost the country’s power-generation capacity by a further 40MW. The work includes the construction of a hydroelectric power station and dam at the Kabompo Gorge, a site located in the North-Western province of the country, between Solwezi and Mwinilunga.
The environmental impact assessment for the dam and power station, and the feasibility study have been completed, with positive outcomes.
“The feasibility report shows there are no obvious fatal fl aws, so we are now gearing up to proceed with the project,” says project director Aaron Botha.
The preliminary plan for the project is in two parts: a dam is to be constructed at the entrance to the Kabompo Gorge, while an underground power station is to be built on the western side of the gorge and connected to the dam and the river outfl ow by a system of tunnels.
In the earlier part of 2011, CEC went out to tender for the various elements of engineering and construction, consultancy and advisory work. In parallel with this, work is in progress to present the scope of the project and the results of the feasibility study to the fi nancial institutions and investment banks for project fi nancing.
“This is a fairly long process,” Botha says, “and if all goes to schedule, we hope to begin construction work early in 2012 and complete it by the end of 2015, ready to begin operational testing of the fi rst of two 20MW generation machines.”
Both of these projects will have a signifi cant impact on power security for Zambia, and will bring the added benefi t of job creation, both in the short term during the construction phase and in the long term, running and maintaining the new facilities.
Contact:
Chama Nsabika Kalima Head Public Relations
nsabika@cec.com.zm www.cecinvestor.com
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