Copperbelt Energy Corporation (CEC) Chief Financial Officer Mutale Mukuka calls for partnerships, innovative structuring and financing solutions to overcome challenges of the demand and supply gap in the mining sector with renewable energy.
Speaking during a panel discussion at the Africa Energy Forum in Nairobi, Kenya, on the subject ‘Breaking Down Barriers for Energy Transition in Mining’, Mr. Mukuka said most countries in the region have undertaken energy sector reforms that allow for private sector participation but also facilitate for open access thereby enabling large power users or consumers such as the mining companies to directly contract their power requirement from Independent Power Producers. This framework provides an opportunity for investment in energy infrastructure to address the power deficit.
“The regional power pool markets are now opening up and there is an opportunity for business-to-business solutions that will deliver reliable power supply to the mines in view of the energy transition,” he said.
CEC is a private utility and a member of the Southern African Power Pool (SAPP). The company provides an integrated solution for reliable power supply to the mines by delivering energy from multiple sources, which includes solar energy generated from its 34-megawatt solar plant.
While there is an apparent power deficit in the region, there is opportunity for the investments in power projects to meet this power deficit. Some of the barriers hindering investment into the sector, includes the structure of lending requirements and particularly the allocation of risk. “Funding of infrastructure projects generally and specifically energy projects in the region have relied on sovereign guarantees, however, there is an opportunity for stakeholders to review the traditional risk allocation and make more relevant and adaptable to the changing landscape,” said Mr. Mukuka. He further called on private sector players to consider business-to-business solutions to not only solve the financing of projects but also meet the need for reliable power supply.
Mr. Mukuka highlighted CEC’s focus on working with various partners and lenders to deliver on bankable projects to support the sector.
CEC continues to innovate and invest in infrastructure that will ensure the provision of reliable power to meet the requirements of the sector. The Company is due to commission an additional 60 megawatts solar plant before the end of the year.
