Africa-focused independent power company Globeleq, has signed a share purchase agreement with Norwegian development finance institution Norfund for the proposed acquisition of a 51% equity stake in the Zambian entity, Lunsemfwa Hydro Power Company (LHPC). LHPC operates two hydroelectric power plants totaling 56MW and is constructing a 20MW solar PV project.
The remaining 49% equity stake of LHPC is owned by Wanda Gorge Investments, a Zambian based infrastructure investment company.
Based in Kabwe in Zambia’s Central Province, LHPC sells power to the Zambia Electricity Supply Corporation through a power purchase agreement and a portfolio of private customers, which include Copperbelt Energy Corporation and Jubilee Metals. It also holds a Southern African Power Pool (SAPP) electricity trading license.
The acquisition also represents Globeleq’s first investment in hydropower in Africa and market entry into the Zambian energy market. The company revealed that it plans to provide solutions to a range of public and private energy intensive consumers.
Furthermore, the acquisition will diversify Globeleq’s renewable energy portfolio which includes solar, wind, battery energy storage (BESS), hybrid solar plus BESS, and geothermal power plants.
“We are excited about this opportunity to enter the Zambian market. LHPC’s established team, operations and trading capabilities combined with our extensive experience in Africa, create a strong platform to support Zambia’s broader energy objectives and deliver solutions to a range of energy consumers in the region,” said Jonathan Hoffman, the CEO of Globeleq.
Globeleq highlighted that Zambia is a priority country for its growth strategy where the company is leading the development of a 400MW+ greenfield portfolio of solar, wind power, BESS and hybrid projects, including its 54MWp Kafue solar project awarded under the GETFiT Zambia programme.
“In seeking a partner for this transition, our priority was to find the right investor—one with the capability to manage well, enhance operational performance, elevate standards, and unlock the long-term growth potential of LHPC. With more than 20 years of experience operating in Africa, we are confident that Globeleq is the right fit to lead the LHPC into its next chapter,” added Øystein Øyehaug, Investment Director at Norfund.
