Jubilee Metals Group has secured a three-year Solar PPA with Lunsemfwa Hydro Power Company, ensuring reliable and competitively priced power for its operations in Zambia. The agreement also offers Jubilee the option to acquire additional solar power at a significant discount, supporting its future expansion.
The Importance of the Solar PPA
Jubilee Metals Group has taken a significant step forward in securing its energy future. The company has signed a three-year power purchase agreement (PPA) with Lunsemfwa Hydro Power Company (LHPC) in Zambia. This agreement ensures that Jubilee will meet the power needs of its key operations in the country.
Jubilee Metals signs a three-year PPA with Lunsemfwa Hydro Power for reliable energy, with an option for discounted solar power
The Solar PPA with LHPC is more than just a standard business transaction. It is a critical element in Jubilee’s strategy to ensure a reliable power supply at its Roan concentrator facility and Sable refinery. Starting from September 1, this agreement will provide Jubilee with a consistent and competitively priced power supply.
This agreement also includes an option for Jubilee to secure an additional 10 MW of solar-generated power. This extra power comes with a significant discount, over 30% lower than the initial PPA rates. This provision is particularly valuable as it provides Jubilee with the flexibility to scale its energy consumption in line with its operational expansion.
Meeting Current and Future Energy Needs
Jubilee’s CEO, Leon Coetzer emphasized the importance of the Solar PPA in securing a reliable power supply. He noted that the power shortages at the Roan and Sable operations had impacted production. This Solar PPA directly addresses those shortages, ensuring continuous energy availability. The additional 10 MW of solar power which can be scaled further will meet the company’s growing power demands.
This agreement is crucial as Jubilee targets a significant expansion of its copper processing capacity. The company is aiming for a processing capacity of 25,000 tonnes per year. Achieving this goal requires a stable and reliable power supply, which the Solar PPA is set to provide. Coetzer highlighted that securing a reliable power source is vital for the success of Jubilee’s Zambian copper strategy.
LHPC’s Role and Contribution
LHPC, an independent power producer in Zambia plays a pivotal role in this Solar PPA. The company operates two hydropower plants in Zambia's Central province and is a key player in the Southern Africa Power Pool. LHPC is not only committed to providing reliable energy but is also focused on expanding its renewable energy portfolio.
As part of its contribution to the Solar PPA, LHPC is building a 20 MW solar plant. This facility, along with its existing hydropower plants, will ensure a diversified and stable energy supply for Jubilee. The power supplied under this agreement will come from an integrated solar power and hydro-storage facility. This facility is expected to be operational within the next 12 months, further solidifying the reliability of the power supply.
The use of renewable energy sources like solar and hydro power is increasingly becoming a standard for companies looking to reduce their carbon footprint. Jubilee’s partnership with LHPC demonstrates a proactive approach to environmental responsibility. The company is not just focused on its operational expansion but is also taking meaningful steps towards sustainability.
In a broader context, this Solar PPA is a positive step towards a more sustainable energy future. As companies like Jubilee prioritize renewable energy, the transition towards a greener economy becomes more attainable. This agreement is not just about business; it is about creating a sustainable path forward for both the industry and the environment.