Wärtsilä signs first service agreement for power plant in Zambia

Wärtsilä Corporation, Press release 15 May 2013 at 13:30 UTC+2

Wärtsilä, a leading global supplier of flexible and efficient power plant solutions and services, has signed an Operations & Maintenance (O&M) agreement with Ndola Energy Company Ltd (NECL), a subsidiary of Great Lakes Energy NV. The agreement was signed in April and is for ten years. It will cover the full operations, maintenance and servicing of the NECL power plant located in Ndola, Zambia.

The plant will be powered by a total of 6 Wärtsilä 32 engines running on heavy fuel oil (HFO), a by-product supplied from the Indeni refinery, which is immediately adjacent to the plant. The plant is scheduled to commence commercial operations at the end of July 2013, and the electricity produced will be sold to Zambia Electricity Supply Company Ltd (ZESCO Ltd). When operational, the plant will have an electrical output capacity of 50 MW, which will be fed to the grid. It will be the first HFO power plant installed in Zambia to be exclusively operated by Wärtsilä.

“Our extensive experience and know-how in O&M as well as our capability to mobilize in such a short span, together with the efficiency and reliability of the Wärtsilä equipment will be of tremendous value in ensuring the success of this important project,” says Kaj Nordman, Director Business Development Power Plant Agreements, Wärtsilä Services, Contract & Project Management. “The power plant is designed with high operating efficiency, low generating costs, and reliability as key criteria, and these are all areas where Wärtsilä excels.”

The NECL power plant will contribute significantly towards Zambia achieving a more diversified energy mix and increased stability in its power generation. The country relies heavily on hydropower and this new power plant will complement Zambia’s installed capacity. David Carroll, Business Development Manager, Ndola Energy Company Ltd, said: “This is a milestone achievement in developing the power generation business in Zambia. This is the first greenfield project from an independent power producer to operate in Zambia, with the funding being 100 percent private sector capital.”

O&M Agreements

An Operations and Maintenance agreement is a comprehensive form of asset management. Typically, such agreements can be tailored to cover the entire scope of operational, management, and maintenance services, as well as providing performance guarantees for the installation. By taking responsibility for operating and maintaining the facility, Wärtsilä will implement its global best practices to ensure that it delivers the design output with maximum efficiency.

Wärtsilä is an experienced operator, with a proven track record in O&M services. Globally, more than 17 GW of generating capacity in both marine and land-based installations – a total of 545 installations to date – is covered by Wärtsilä’s O&M and other service agreements, of which 29 such agreements are in Africa.

Read more about Wärtsilä Services

For further information please contact:

General Manager, Business Development Power Plant Agreements
Wärtsilä Services
Contract & Project Management
Tel. +358 10 709 2603

Anna-Leena Pohjanpalo
Media Officer, Media and Stakeholder Relations
Wärtsilä Corporation
Tel: +358 10 709 5627

Wärtsilä in brief:
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2012, Wärtsilä’s net sales totalled EUR 4.7 billion with approximately 18,900 employees. The company has operations in nearly 170 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.