MAAMBA Collieries Limited is ready to double its thermal-generated power at the newly-commissioned plant to 600 megawatts (MW) once tariffs are increased to reflect actual cost of producing electricity.
Currently, the Maamba coal-fired power plant has an installed capacity of 300MW but only 150MW was commissioned last week and connected to the national grid through Zesco Limited, which signed a memorandum of understanding with the company to start supplying electricity to the latter.
Zambian electricity tarrifs are said to be the lowest in the region and cost below US$0.6 cents per kilowatt hour for domestic consumers while the regional average is between US$10 and 20 cents.
Maamba Collieries Limited chairman Ashok Devineni said the company is ready to increase the generation capacity of the thermal power plant from the current 300MW to 600MW if tariffs are increased to reflect actual cost of electricity.
The coal-fired power plant was commissioned last week with 150MW connected to the national grid while the other 150MW will be connected this month-end and it is expected to help reduce the power cuts, which have affected the country recently.
Mr Devineni said the planned increase in electricity generation has to happen to keep pace with the growing demand in the country.
“Maamba can contribute by expanding the capacity of the power plant by an additional 300MW to ensure a total of 600MW if Zesco can guarantee the off-take. Our expansion will be time, cost and resource efficient. It can be set up in 24 months.
“We must, however, acknowledge the fact that creating new generation capacity will be an uphill task unless and until the electricity tariffs are revised to reflect the true cost of procurement for Zesco. Actually, sustaining the present 300MW generation will itself be difficult, given the present miss-match of tariff and cost of supply,” he said.
The plant, whose investment is US$738 million, will help diversify the power generation sources in the country, which is heavily dependent on hydro power, thereby insulating Zambia from energy shortage during the years of low rainfall.
And Zesco Limited managing director Victor Mundende said there is need to migrate and start charging cost-reflective tariffs.
“Once we have cost-reflective tariffs in place, Maamba or any other independent power producer can sell anywhere while Zesco can help by providing its transmission network,” he said.
HH just back out
Meant say say HH just back out of the elections and let PF fix the mess they created.
Ruling zambia is going to get messy, very very messy.
What has HH got to do with maamba collieries now? You back off your comment yourself
I agree with Spaka. Whoever takes over government will have to struggle with the mess we are in. Better the PF continues as they will have no one to blame but themselves for the huge debts accrued that have attracted the IMF to visit us. If another president takes over, all they will be saying is that “it wasnt me.”
We those bwaamba collieries was a PF project to eliviate load shedding? Now PF Mudende says its a lie what Petitioned Edgar was telling voters when he opened during campaigns in just ended wasted elections.
Now the real issues and the gains of PF will be felt by the poor to a point Zambians have not seen before. The borrowing in the night and day will now bear its unwanted baby called suffering. Only people close to the power that be will continue enjoying through corruption as for the street supports it will be truly dununa reverse.
Spaka like lilo, thank you for that comment. It’s just about the only brilliant comment that you have made in a long time. Yes I agree with you, Zambia is not yet in a state for children to run, HH would simply be crying in state house if he saw the amount of work to be done to develop this country, its not just I will fix it childishness when you have no inkling of the problem at hand or how hard it is. On the other hand, I am amazed and comforted by the courage exhibited by Lungu these last 20 months. The world commodity prices collapsed just as soon as he became president and the drought hit us, but look at the courage and resilience of the man! Meantime HH and Spaka like lilo, still dont beievecsimple things like kariba dam levels and still talk about defective chinese machines…
Why do you guys give childish comments? who do you want to impress or who do you want to hurt. The issue here is power generation not those childish comments from both sides meaning PF & UPND. Useless carders
Those who think unless they are given an injection to recover even if its a sringe of water, will never accept to be discharged from hospital!
This same story for HH disciples who think that raw as he is, he will use private sector experience to run the country. Unfortunately he has no experience so please leave those in offices to do their job.
The issue at hand is cost reflective tariffs not HH.
it is amazing how some weak souls digress from issues and talk about HH! HH shall never know suffering, he is fighting for poor people’s sorry asse**s in all corners of this country including some above!
@ Jah Messenger 100% CORRECT its not the POLITICIANS to suffer but we are going to be affected.
“Once we have cost-reflective tariffs in place, Maamba or any other independent power producer can sell anywhere while Zesco can help by providing its transmission network,” Zesco MD said.
Now its all coming out…the chickens are coming home to roost ..all these companies who were told to hold until the elections like MAAMBA Collieries Limited will start knocking on the door for cost reflective tarrifs…this is what happens when you sweep problems under the carpet.
@ 5 Jay Jay, you are right! Cost effective tariff will be implement and Lungu explained it and PF has put that in their manifesto. They are open about it and they have said they will be revising tariffs in phases until they reach the regional levels by 2019. Better open to show the gravity of the problem and carry people along rather than simplify issues and then turn around doing the opposite with endless excuses!
Please keep your extra 300Mw you want to charge at cost reflective tarrifs and we will keep our load shedding.
And who do you think is paying for your 300MW? You have to wake up the article states that “Zambian electricity tarrifs are said to be the lowest in the region and cost below US$0.6 cents per kilowatt hour for domestic consumers while the regional average is between US$10 and 20 cents.”
Meanwhile you want to continue to live in a cartoon dreamland constantly postponing the inevitable to your children..this is the same with petrol as well there is a lack of leadership that puts politics before everything else if its not General Election its by elections. Who long are you going to continue subsidizing consumption.
Zambians have become dull because of corruption honestly hw does hh com in mamba issue hu hs not said anything.most of u ar g12 bt u reason like my g1 child. learn to discuss issues at hand,grow up
Maamba Collieries Limited chairman Ashok Devineni said “..Our expansion will be time, cost and resource efficient. It can be set up in 24 months”.
Given that the Carbon foot-print (pollution) of the Plant will also increase, the chairman would have done well to say what mitigation measures they have in place to counter global warming due to carbon emissions. Even a mere reference of the surrounding forest as Carbon sink would go a long way to show that he is conscious of this problem. But alas, its all silence in the subject.
Its laughable him saying coal power generation is resource efficient, when you taking out or depleting a resource that will not be replaced and at the same time using millions of gallons of water… Why would he say that when his partners the Govt do not have any policies or carbon taxes to penalize polluters…his performance is rated on profit by his shareholders.
Zesco Limited managing director Victor Mundende said there is need to migrate and start charging cost-reflective tariffs. Foolish where have you been all this time. Now that elections are over and Panga Family has no money as they have stolen all of it and nobody is ready to loan Zambia apart from IMF, you want to tell us what we know already
Reduce Corruption and you might save some money
Jay-Jay I miss your comments
Now we are talking business.
Zambians have been spoon-fed for too long
Mealie meal/sugar/cooking oil/petroleum products/fertiliser next
In due course, we will become wiser, abstemious and responsible
Do not despair, President ECL will triumph
He needs support
IMF will increase tariffs to 10cents/kwh. All that extra money will be going to pay $1.9 BILLION IMF loan.
Other subsidies are also going:-
Fuel subsidy going, prices will be K20/litre
Fertilizer subsidies will be removed, expect a flop in yields in spite of good rains this coming season. Expect serious food shortages.
Education subsidies to UNZA CBU & other tertiary institutions
civil servants allowances to be scrapped
Zambians can’t afford anything more then what they are currently paying. The rates in the high density area should increase because they misuse electricity
I fail to understand when you say you are able to increase generating capacity to 600 MW once Zesco increase electricity tariffs in the Country. What I know is that you are selling a commodity to Zesco and i don’t see why the later should be the one to dictate at what price you are to sell this commodity called electricity generated by your plant. I thought it is you to determine the price at which you will sell to Zesco. If they can’t buy at your price then export the commodity to other countries in need of power. Zesco of late have been importing power from outside at great cost. I don’t think those providing power to Zesco from the ship on the cost of Mozambique debated with Zesco to have the local tariffs increased. Zesco had to buy it at the cost provided by that company…
Zesco didnt pay for the plant nor did they fork out close to $800 million when they want to upgrade the plant Maamba pays with there own money now this is a simple question would you want loadsheeding when a loved one is in hospital ……we will raise the tarrifs …low tarriffs are the reason we have power failures ! we all know they reversed the tarriffs for the election prices have to go up! also were to chap thinks Zesco will get man to build those hydro plants lenders want to know that the project will make back the money