Copperbelt Energy Corporation

Last updated
Copperbelt Energy Corporation Plc
Company type Public Limited Company
Lusaka Stock Exchange:CECZ
IndustryElectricity Generation, Transmission and Supply
Founded1997
Headquarters Kitwe, Zambia
RevenueIncrease2.svg ZMW 7,720 million | US$ 382 million (2023)
Increase2.svg ZMW 4,689 million | US$ 232 million (2023)
Total assets Increase2.svg ZMW 13,654 million | US$ 676 million (2023)
Total equity Increase2.svg ZMW 2,782 million | US$ 138 million (2023)
Number of employees
400 in Zambia (2023), 3,165 in Nigeria (2014)
Website cecinvestor.com

Copperbelt Energy Corporation Plc (CEC) is a Zambian electricity generation, transmission, distribution and supply company with operations in Zambia and Nigeria. The company is listed on the Lusaka Stock Exchange (symbol: CECZ) [1]

Contents

Operations

Zambia

In Zambia CEC owns and operates an electricity transmission network in the Copperbelt area with 246 km of 220kV power lines and 678 km of 66kV lines. [2] The company purchases electricity from ZESCO, the national power utility, and sells this across its transmission network to 8 Zambian mining customers with a combined demand of 520MW. In 2014 CEC supplied 4,208GWh of electricity to its customers which was 29% of Zambia's total generation of 14,453GWh. [3] CEC also operates 6 gas turbine generators at Luano, Maclaren, Kankoyo and Bancroft for emergency power supply to its mine customers with a total installed capacity of 80MW. [2]

CEC owns the Zambian portion of the Zambia - DRC 220kV interconnector line which has a capacity of 250MW and supplies electricity to mining customers in the Katanga Province. The interconnector is expected to be upgraded to a dual circuit with a capacity of 550MW by the end of 2015. [4] [ needs update ]

The company is developing the 40MW Kabompo Gorge hydropower project on the Kabompo river in the North-Western Province of Zambia.[ citation needed ]

CEC is a member of the Southern African Power Pool (SAPP) and trades and wheels power within the pool.

In 2023, CEC commissioned a 34 MW Solar Power Plant in Riverside, Kitwe. [5]

In February 2024 CEC reported it is developing a 60 MW solar plant under development in Itimpi area, Kitwe. [5]

Nigeria

In Nigeria CEC owns 45% of the Abuja Electricity Distribution Company (AEDC) an electric power distribution company. AEDC has a franchise for distributing electricity in four Nigerian states, the Federal Capital Territory of Abuja, Niger State, Kogi State and Nasarawa State and serves 700,000 customers. [4]

CEC holds a 20% stake in North South Power Limited which has a 30-year concession to operate the 600MW Shiroro hydro power plant in Niger State.

Other countries

In Namibia, CEC has signed a joint development agreement with the state utility, NamPower, and Kudu Power Limited for development of 800MW-1,050MW combined cycle gas-to-power generation. The company also has a 60% interest in Arandis Power, the developer of a 120MW hybrid HFO and renewable generation plant in Arandis, Namibia.

CEC has signed a power purchase agreement (PPA) with the Government of Sierra Leone for a 20-year concession to build and operate a 128MW thermal power project.

History

CEC traces its origin to a company that was called Northern Rhodesia Power Corporation established in 1952. In or around 1954, the company became the Rhodesia-Congo Border Power Corporation whose purpose was to supply reliable and secure electricity to the mines in Northern Rhodesia and the Congo by interconnecting separately run thermal power stations in the mining areas. Later, the company sourced and supplied hydroelectric power from the Congo to supply to the mines in Northern Rhodesia before the production of hydroelectricity from the Kariba Dam. [6]

At Zambia’s independence in 1964, the Rhodesia-Congo Border Power Corporation became Copperbelt Power Company (CPC), an entity that supplied electricity to the mines until 1986 when it was incorporated into the Zambia Consolidated Copper Mines (ZCCM) as its Power Division. [6]

In 1997, CEC was born out of the privatization of ZCCM - Power Division. Cinergy Global Power of the US and National Grid of the UK acquired the controlling stake in the company. [6]

The two investors subsequently sold off their 77 per cent stake in the company to a group of local entrepreneurs. In January 2008, CEC became Zambia’s first power utility to list on the Lusaka Stock Exchange (LuSE) and remains the only one as of 2015.

In 2013 CEC expanded its operations into Nigeria by taking a 75% stake in KANN Utility which in turn owns 60% of Abuja Electricity Distribution Company. [7] In 2013 the company purchased a 20% share of North South Power Limited which has a 30-year concession to operate the 600MW Shiroro hydro power plant in Niger State. [8]

Related Research Articles

<span class="mw-page-title-main">Economy of Zambia</span>

Zambia is a developing country, and it achieved middle-income status in 2011. Through the first decade of the 21st century, the economy of Zambia was one of the fastest-growing economies in Africa, and its capital, Lusaka, the fastest-growing city in the Southern African Development Community (SADC). Zambia's economic performance has stalled in recent years due to declining copper prices, significant fiscal deficits, and energy shortages.

<span class="mw-page-title-main">Northern Rhodesia</span> 1911–1964 British protectorate in Southern Africa

Northern Rhodesia was a British protectorate in Southern Africa, now the independent country of Zambia. It was formed in 1911 by amalgamating the two earlier protectorates of Barotziland-North-Western Rhodesia and North-Eastern Rhodesia. It was initially administered, as were the two earlier protectorates, by the British South Africa Company (BSAC), a chartered company, on behalf of the British Government. From 1924, it was administered by the British Government as a protectorate, under similar conditions to other British-administered protectorates, and the special provisions required when it was administered by BSAC were terminated.

<span class="mw-page-title-main">Ndola</span> City in Copperbelt Province, Zambia

Ndola is the third largest city in Zambia and third in terms of size and population, with a population of 475,194, after the capital, Lusaka, and Kitwe, and the second largest in terms of infrastructure development after Lusaka. It is the industrial and commercial center of the Copperbelt, Zambia's copper-mining region, and capital of Copperbelt Province. It lies just 10 kilometres (6.2 mi) from the border with DR Congo. It is also home to Zambia's first modern stadium, the Levy Mwanawasa Stadium.

<span class="mw-page-title-main">Mwinilunga</span> Zambian town

Mwinilunga is a town in the North-Western Province of Zambia. It is the headquarters of Mwinilunga District, one of the province's eleven districts.

Chililabombwe is a small town in Copperbelt Province, Zambia. It is located near the Democratic Republic of the Congo border. The name Chililabombwe means 'place of the croaking frog' in the local language of Lamba. The town has a population of 87 000 based on census data from 2010, making it one of the largest towns in the Copperbelt. The town is on the T3 road, 26 km north of the neighbouring town of Chingola, and approximately 10 km south of the large border market of Kasumbalesa. It has also produced national heroes like the late soccer star Eston Mulenga and many others.

<span class="mw-page-title-main">ZCCM Investments Holdings</span> Zambian mining company

ZCCM Investments Holdings is a successor company to Zambia Consolidated Copper Mines Limited, of Zambia.

<span class="mw-page-title-main">Outline of Zambia</span> Overview of and topical guide to Zambia

The following outline is provided as an overview of and topical guide to Zambia:

Zambia, officially known as the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana, and Namibia to the south, and Angola to the west. The capital city is Lusaka, located in the southeast of the country. The population is concentrated mainly around the capital and the Copperbelt to the northwest.

<span class="mw-page-title-main">ZESCO</span> Zambian national electricity company

ZESCO is a state-owned power company in Zambia. It is Zambia's largest power company producing about 80% of the electricity consumed in the country. ZESCO represents Zambia in the Southern African Power Pool.

<span class="mw-page-title-main">Mining in Zambia</span>

Mining in Zambia produces several minerals and is a critical part of the country's economy. Copper comprises 70% of Zambia's total export earnings, and the country produces about 20% of the world's emeralds. Mineral resources are distributed throughout the country. Zambia produced 763,287 metric tons of copper in 2022.

Bwana Mkubwa is a settlement and a mine in Copperbelt Province, Zambia. It is the oldest mine in Zambia's Copperbelt region. As a settlement with no municipal status, it became a locale due to the abundant copper deposits found in the area. Today, it is part of Ndola.

In recent decades, the population of Chinese people in Zambia has rapidly increased. There were 80,000 Chinese people living in Zambia according to a 2019 U.N. World Population study.

Mopani Copper Mines PLC is a Zambian company owned by ZCCM Investment Holdings.

The electricity sector in Nigeria generates, transmits and distributes megawatts(MW) of electric power that is significantly less than what is needed to meet basic household and industrial needs. Nigeria has twenty-three (23) power generating plants connected to the national grid with the capacity to generate 11,165.4 MW of electricity. These plants are managed by generation companies (GenCos), independent power providers, and Niger Delta Holding Company. In 2012, the industry labored to distribute 5,000 MW, very much less than the 40,000 MW needed to sustain the basic needs of the population. This deficit is also exacerbated by unannounced load shedding, partial and total system collapse and power failure. To meet demand, many households and businesses resort to purchasing generating sets to power their properties, this source of energy provided 6,000 MW in 2008. Nigeria has a chronic electricity shortage that has affected the country for many years. In 2022, its power grid collapsed twice during one week.

<span class="mw-page-title-main">Komboni</span> Informal housing in Zambia

A komboni is a type of informal housing compound or shanty town common to Zambia, particularly the capital city of Lusaka. It is characterized by a low income and a high population density. Kombonis typically began as housing for employees of a particular company, estate, or mine. An estimated 35% of Zambians live in urban areas, and kombonis exist in many of them. It is estimated that 80% of the population of Lusaka live and work in these areas.

Zambia is potentially self-sufficient in sources of electricity, coal, biomass and renewable energy. The only energy source where the country is not self-sufficient is petroleum energy. Many of the sources of energy where the country is self-sufficient are largely unexploited. As of 2017, the country's electricity generating capacity stood at 1,901 megawatts.

The Zambia Riverside Solar Power Station is a 34 megawatts solar power plant in Zambia. The privately owned solar farm was originally commissioned in April 2018, as a 1 MW power station by Copperbelt Energy Corporation (CEC), who own the energy infrastructure. In December 2021, CEC signed a engineering, procurement, and construction (EPC) contract with Sinohydro to expand the solar farm by 33 extra MW over the next 12 months. CEC transmits and distributes the power to its customers in the Copperbelt Province of Zambia.

References

  1. "Lusaka Stock Exchange". www.luse.co.zm/. Lusaka Stock Exchange. Retrieved 22 July 2015.
  2. 1 2 "Overview of the CEC Business". Google docs. CEC. Retrieved 22 July 2015.
  3. Energy Regulation Board, Zambia (2015). Energy Sector Report 2014 (PDF) (Report). Energy Regulation Board, Zambia.
  4. 1 2 CEC (2015). CEC Annual Report 2014 (Report). Copperbelt Energy Corporation.
  5. 1 2 "Copperbelt Energy Corporation Plc (CEC.zm) 2023 Annual Report". 8 March 2024 via africanfinancials.com.
  6. 1 2 3 "CEC: ZAMBIA'S OLDEST PRIVATE OWNED POWER COMPANY". Times of Zambia. Times of Zambia.
  7. "CEC acquires 60% shares in Nigerian energy company". Zambia Mining News. Zambia Mining News. 27 February 2013.
  8. "Niger sells stake in Shiroro power plant". Punch. Punch. Archived from the original on 2015-07-22. Retrieved 2015-07-22.