Partnership Approach to Strengthening Zambia’s Grid and Enabling Sustainable Copper Production
A partnership model to strengthen Zambia’s power grid, improve reliability, and support sustainable copper production through collaborative infrastructure, renewable energy offtakes, and coordinated planning
Context
Across resource-rich economies, reliable and sustainable energy access is a critical enabler of industrial growth, particularly for mineral production. Expanding output often depends on strengthening grid infrastructure, diversifying generation sources, and building resilient systems that can withstand climate and supply shocks.
Zambia illustrates this dynamic well. As one of the world’s leading copper producers, it has set ambitions to increase output to 3 million tonnes annually by 2031. Achieving this requires close coordination between government, utilities, and industry. One example is First Quantum Minerals (FQM), which operates two of the country’s largest copper assets in the North-Western Province. FQM’s experience shows how partnerships with the national utility and independent power producers can strengthen grid stability, enable renewable projects, and support both production growth and national development.
Challenge
Like many resource-rich economies in the region, Zambia faces multiple structural and environmental challenges related to energy access for industry [i]:
- Grid limitations: The North-Western Province, home to several large-scale mining operations, has experienced periodic voltage fluctuations and outages, leading to unplanned equipment shutdowns and production losses.
- Hydropower variability: Drought conditions have periodically reduced the capacity of major hydropower facilities, leading to increased load-shedding risks during dry seasons. [ii]
- Transmission bottlenecks: Constraints in Zambia’s existing transmission network limit dispatch to high-demand regions, restricting industrial growth and supply reliability.
- Import limitations: While Zambia is interconnected with the Southern African Power Pool (SAPP), import capacity is limited and subject to regional availability, particularly during periods of system-wide stress.
These challenges highlighted that coordinated, system-level interventions could help maintain operational continuity and support sector growth.
Approach
To address these challenges, stakeholders in Zambia have pursued various collaborative approaches. One example is the strategy adopted by FQM in partnership with ZESCO and other actors, which included measures such as:
- Grid infrastructure development: Mining operators co-financed major transmission projects to connect large industrial sites with the national grid. Under this model, new lines and substations were ultimately transferred to ZESCO for ownership and operation.
- Grid modernization program: Joint initiatives between mining companies, ZESCO, and technical partners introduced grid stabilization measures such as advanced voltage control equipment and upgrades from single- to double-circuit lines, supporting reliability and renewable integration. [iii]
- Renewable energy offtake agreements: Long-term offtake agreements with Zambian independent power producers and power traders supported the development and bankability of new renewable energy projects.
- New generation projects: Partnerships with international energy developers advanced proposals for large-scale renewable projects, including hybrid solar–wind systems, helping diversify Zambia’s energy mix. [iv].
- Regional imports: Collaborative arrangements between ZESCO, private sector partners, and regional traders enabled access to imports from the Southern African Power Pool during drought-induced shortages. [v].
- Operational flexibility: Coordination with ZESCO and regulators improved planning for maintenance and curtailment, reducing unplanned production losses during periods of constrained supply. [vi].
Conditions
Several factors have helped ensure energy security and operational continuity for copper mining operations:
- Government alignment: Power security was highlighted as essential for achieving mining growth.
- Collaborative utility: ZESCO demonstrated openness to new models of grid support, private sector partnership, and IPP integration.
- Technical advisory: Independent advisory support helped strengthen grid planning, system modeling, and market design.
- Private sector engagement: FQM and other large-scale consumers have taken a proactive role in supporting energy reliability and broader national development priorities.
Observed Impact
While several initiatives remain in progress, Zambia’s experience is already showing early results:
- Operational continuity: During Zambia’s 2024 power crisis, FQM maintained stable production at Kansanshi and Trident, avoiding the curtailments experienced by other sectors.
- Renewable projects advanced: Long-term energy offtake agreements helped enable projects such as the Chisamba solar plant and a planned 430 MW hybrid solar-wind development in partnership with TotalEnergies.
- Public–private coordination: Engagement between ZESCO, the Energy Regulation Board, and mining operators has improved alignment on infrastructure planning and regulatory priorities.
What’s Next for the Southern African Region
Zambia’s experience highlights potential strategies that other mineral-rich countries in Southern Africa could consider as they work to align energy security with industrial growth:
- Leverage anchor offtakers: Large energy consumers, such as mining companies, could play a role in de-risking grid investments and enabling renewable energy projects through long-term offtake commitments.
- Plan for supply flexibility: Incorporating mechanisms such as emergency imports and operational flexibility can help maintain production during periods of domestic supply constraints.
- Strengthen coordination mechanisms: Structured collaboration between utilities, regulators, and the private sector can accelerate investment, improve planning, and reduce infrastructure delivery timelines.
[ii] https://africagreenco.com/pdf/GreenCo-ZESCO-FQM-Press%20Release.pdf
[v] https://africagreenco.com/pdf/GreenCo-ZESCO-FQM-Press%20Release.pdf
[vi] https://fmdrc-zambia.com/first-quantum-minerals-signs-landmark-power-supply-agreement-with-zesco/
OTHER SOURCES
1. First Quantum Minerals. (2025). Q1 2025 Management Discussion & Analysis Report. https://www.first-quantum.com/English/investors/financial-information/default.aspx
2. Ministry of Mines and Minerals Development, Republic of Zambia. https://www.mmmd.gov.zm/wp-content/uploads/2024/10/Strategic-Plan-2022-2026.pdf
3. https://zimeczambia.com/interviews/first-quantum-minerals/
4. GreenCo Power Services. (2023). GreenCo-ZESCO-FQM Press Release. https://africagreenco.com/pdf/GreenCo-ZESCO-FQM-Press%20Release.pdf
5. Mining Weekly. (2024). First Quantum Navigates Zambia Power Crisis through Imports, Renewable Projects. https://www.miningweekly.com/article/first-quantum-navigates-zambia-power-crisis-through-imports-renewable-projects-2024-04-24
6. First Quantum Minerals. (2024). _Q4 2024 Management Discussion & Analysis Report_https://www.first-quantum.com/English/investors/financial-information/default.aspx
7. Zambia Ministry of Energy "The Integrated Resource Plan" https://www.moe.gov.zm/irp/
8. Info re Open Access: https://www.erb.org.zm/wp-content/uploads/SI-40-of-2024-Electricity-Open-Access-Regulations.pdf
9. Southern African Power Pool (SAPP). Transmission Infrastructure Map and Reports. https://www.sapp.co.zw