Globeleq acquires 51% stake in Zambian power company
Norfund sells majority stake in Lunsemfwa Hydro Power Company to Globeleq.
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Globeleq, an independent power company in Africa, has completed its acquisition of a 51% equity stake in Lunsemfwa Hydro Power Company (LHPC) from Norfund.
The transaction represents a major step in Globeleq’s entry into the Zambian energy market and the South African Power Pool (SAPP). The remaining 49% of LHPC is owned by Wanda Gorge Investments, a Zambian-based infrastructure investment company.
LHPC operates two hydroelectric power plants with a combined capacity of 56 MW and is constructing a 27 MWp solar PV project. Its growth pipeline includes a 200 MWp solar portfolio and various hydropower expansions.
Based in Kabwe, Zambia’s Central Province, LHPC supplies electricity to ZESCO, the national utility, under a long-term power purchase agreement and serves private off-takers such as Copperbelt Energy Corporation and Jubilee Metals. LHPC also holds a SAPP trading license, enabling regional energy trade.
Jonathan Hoffman, CEO of Globeleq, said: “This partnership is a major step forward for Globeleq and Zambia’s energy sector. LHPC’s strong operational base and ambitious growth plans align with our strategy, providing an operational entry into Zambia and active trading in SAPP. Combined with our project pipeline, LHPC strengthens our ability to offer tailored power solutions to major consumers in the region.”
Øystein Øyehaug, investment director at Norfund, added: “We are delighted to have found the right partner to advance LHPC’s long-term potential. Globeleq has the expertise and resources needed to enhance LHPC’s performance and drive its future development. This transaction supports our mission to promote sustainable development and expand access to clean energy in Zambia.”
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