LUNSEMFWA Hydro Power (LHP) Company Limited says it has concluded feasibility studies for the 180-megawatt Muchinga hydro-power project to be developed in Mkushi.
The feasibility studies which were completed this year will pave way for the development of the over US$700 million project which is expected to add 180MW to the grid.
LHP chief executive officer Katai Kachasa said the development of the project awaits revision of electricity tariff, which are currently low and are not attractive to private sector investment.
“There is need to resolve issues surrounding electricity tariffs so that the project can take off,” he said.
Mr Kachasa said this in an interview at the on-going Zambia international energy conference being organised by Stanbic Bank, Zesco Limited, Rural Electrification Authority and Energy Regulation Board under the theme, “Power and renewable energy: Unlicking Zambia’s investment and growth potential at 50”.
He said failure to address the low tariffs prevailing in the country may result in the private power producers exporting power to countries with cost-reflective tariffs.
“ERB and Government should give a more defined roadmap on the tariffs,” he said.
Zambia Daily Mail