In a country where rolling blackouts last up to 17 hours a day, Zambia’s new $100 million Chisamba solar plant offers both hope and hard choices. The project, built by the Chinese state-run energy giant PowerChina and financed by Zambia’s national utility ZESCO, is designed to stabilize power for mining operations, the lifeblood of Zambia’s economy.
A Chinese-Built Lifeline for Mining
The Chisamba plant will supply power to First Quantum Minerals, a company partly owned by Jiangxi Copper Company of China. The partnership highlights China’s growing energy presence in African countries and its significant reliance on Chinese engineering and finance to address chronic energy gaps.
For Zambia, keeping the mines running is non-negotiable.
“Mines employ thousands and generate critical revenue. If the mining sector collapses, the economy collapses,” says Johnstone Chikwanda, a mechanical engineer in the country’s energy sector.
The reason mining is such a critical activity in Zambia is that it dominates the country’s exports, with copper comprising more than 70 percent of the total export earnings. It accounts for almost all foreign direct investment and a quarter of all government revenues. Despite its importance to Zambia’s economy, it has not been shielded from the effects of the country’s energy crisis. The drought affecting Zambia and other Southern African countries has prompted mining companies to seek alternative energy sources. First Quantum Minerals, which has been importing power from neighboring South Africa, has opted for Chisamba’s first phase of generation.
Solar Ambitions, Costly Trade-Offs
The Chisamba solar power plant’s 100-megawatt first phase used 182,000 solar panels, which capture sunlight from both sides, representing Zambia’s most ambitious renewable energy project to date. This reduces the total number required but not the logistical challenge.
“To reach 1,000 megawatts of solar, Zambia would need about 2 million panels,” Chikwanda explains. “That’s a challenge because production and shipping from China will stretch timelines.”
Even as the plant comes online, analysts warn that solar, like hydro, has limitations, including panel degradation and the intermittent nature of its generation. “Solar works best as part of a balanced energy mix,” says Chiwele Mubanga, an environmental researcher and energy analyst.
Financing on Unusual Terms
The project was built under extraordinary circumstances. PowerChina began construction before financing was fully secured, a rarity in Africa’s big-ticket infrastructure deals.
By the time Stanbic Bank announced financial closure, the project was already complete. “This plant was built largely with the expectation of being paid later,” Chikwanda said. “That rarely happens, even with Chinese contractors.”
He added that ZESCO, burdened by debt and unable to secure loans, turned to a subsidiary, Kariba North Bank Extension Corporation, to front 30% of costs. The remaining 70% required creative maneuvering: African Green Corp, a power trader, stepped in as guarantor, securing a $71.5 million loan from Stanbic Bank in exchange for taking on electricity from First Quantum Minerals.
“This wasn’t conventional,” Chikwanda notes. “But without it, the project would have stalled.”
The financing gap highlights a broader shift: as China scales back overseas lending, Zambia is turning to other sources, including local banks and the National Pension Scheme Authority, which is investing in energy for the first time.
To meet the soaring electricity demand amidst financial challenges, Zambia is experimenting with new financing models to increase funding for projects, including those using non-renewable sources like coal, oil, and gas. These projects will be integrated with solar energy to increase energy security for Zambia. “There were challenges raising money on international markets due to climate activism, so we turned to local financing and pension funds,” Chikwanda said. “”
Energy For Mines But Not the People, Yet
While Chisamba brings relief to mining companies, little of its power will reach ordinary Zambians. Most rural communities remain off the grid, while urban households continue to experience prolonged blackouts.
“Chisamba will support First Quantum Minerals,” Mubanga notes. “But it won’t ease load shedding for families since domestic connections remain the same.”
This imbalance highlights a painful yet necessary truth: Zambia’s energy priorities are skewed toward industry, rather than households. “Whatever solutions we bring, more energy will go to industrial enterprises because of their role in GDP,” Mubanga added.
But Zambia’s energy future is also tied to governance. The country loses an estimated $1.2 billion to $5 billion annually in illicit financial flows from its extractive industry, money that could otherwise support energy infrastructure.
To prevent this, Chikwanda notes, “Public finance systems must be tightened to prevent corruption and economic leaks. Otherwise, even the most innovative financing won’t close the gap.”
With limited funding, a bleeding economy, and the delicate balancing act of ensuring Zambians have adequate power for their economy, the Chisamba solar plant stands as both a symbol of possibility and a reminder of limits. It demonstrates how China’s involvement in Africa’s energy sector can accelerate progress, while also highlighting how economic realities compel governments to make difficult trade-offs.
For Zambia, the stakes could not be higher. While mines keep the economy afloat, affordable and reliable energy for households is also essential to boost the country’s broader development.
