Copperbelt Energy Corporation

Owen Silavweand Aaron Botha talk to Gay Sutton about a transmission line project that will make Copperbelt Energy Corporation the export route for DRC’s power for another generation; and the construction of a new hydro power plant in an area of historic significance for Zambia.

The 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 Copperbelt Energy Corporation (CEC) is playing its part in improving that infrastructure and ensuring the power supply will meet demand.

Formed in 1997 following the privatisation of Zambia Consolidated Copper Mines, 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 for the Democratic Republic of Congo (DRC). And 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 fibre 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 first project is one that will have a significant 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, 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, 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 to begin work early next year on the construction of two additional transmission lines and supporting infrastructure. This will not only 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,” Silavwe says. “This will ensure good firm trade on the line and safeguard. Then, 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 is valued at US$18 million, includes the construction of some 51 kilometres of dual transmission lines along with significant 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.

With work scheduled to start early next year, two main contractors have been appointed—KEC International of India and ABB OY of Finland. However, when work reaches completion in April 2012 the project will not only benefit DRC and the SAPP group of countries, but Zambia as well.

“Almost 99.5 per cent of our power generation comes from hydropower, so during drought years we are always challenged. Although that happens quite rarely, when it does happen it’s quite a serious situation and we rely on this transmission line to import power from DRC.”

The 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.

Not as far advanced as the interconnector project, the environmental impact assessment for the dam and power station is still in progress, while the feasibility study was completed in July this year—and the outcomes look positive. “The feasibility report shows there are no obvious fatal flaws,” says project director Aaron Botha. “So we are now gearing up to proceed with the project.”

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 outflow by a system of tunnels. By early 2011 CEC hopes to be ready to go out to tender for the various elements of engineering and construction, consultancy and advisory work.

In parallel with this, work is now in progress to present the scope of the project and the results of the feasibility study to the financial institutions and investment banks for project financing. “This is a fairly long process,” Botha says, “and might continue until this time next year, when we should reach financial closure. Then 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 first of two 20MW generation machines.”

Quite early on in the project, as part of the ongoing Environmental Impact Assessment, the National Heritage Conservation Commission of Zambia carried out a heritage impact study to determine how the project will affect the area. “The gorge is very narrow and deep,” Botha explains, “and although the study did not locate any cave paintings, it established that because we are going to be building the dam at the entrance to the gorge, the gorge itself will not be inundated with water, so the sensitive area will not be negatively affected.”

Both of these projects will have a significant impact on power security for Zambia, and will also bring the added benefit of job creation, both in the short term during the construction phase and in the long term, running and maintaining the new facilities. http://www.cecinvestor.com/