CEC Renewables 2025 Integrated Annual Report
CHAIRPERSON’S STATEMENT
On behalf of the Board of Directors of CEC Renewables, I am pleased to present our Integrated Annual Report for the financial year ended 31 December 2025. This Report reflects our commitment to transparency, accountability, and sustainable value creation for all stakeholders. It integrates our financial performance with our environmental, social and governance progress.
A Year of Resilience and Strategic Progress
The year 2025 was marked by both significant challenges and noteworthy achievements. Despite persistent regional power shortages and a constrained hydrological environment, CEC Renewables demonstrated strong operational and financial resilience. We remained firmly focused on delivering renewable energy infrastructure, sustaining momentum in our mission to support Zambia’s and the broader region’s green transition.
Operational and Financial Highlights
CEC Renewables achieved strong operational performance in 2025. Total renewable energy generation amounted to 171.28 GWh, an increase from 154 GWh in 2024. This growth was fueled by the full-year contribution from the 60 MW Itimpi Solar PV Plant (ISP Phase 1) and the ongoing advancement of our expansion initiatives.
Financially, the Company recorded revenue of US$ 9.6 million (2024: US$ 8.4 million), representing a 14% increase year-on-year. While revenue was 3% below our initial forecast, primarily due to prolonged periods of low irradiation that affected generation, this outcome underscores the strength and scalability of our business model.
Strategic Development and Project Execution
In 2025, we reached a significant milestone with the advancement of our project pipeline. Construction began on the 136 MW Itimpi Phase 2 Solar PV Plant in February 2025, and by the end of the year, we achieved 75% completion. This project is crucial to our goal of installing a total of 230 MW of renewable capacity by 2026.
Additionally, we made progress on our battery energy storage system. We completed pre-feasibility studies for the co-location of storage facilities at our existing solar plants. This is an important step toward enhancing grid stability and maximising the value of the energy we generate.
Financing and Investor Confidence
Our commitment to innovative green financing was reinforced in 2025. We utilised 66% of the remaining balance under our LuSE-listed US$ 200 million Medium Term Note (Green Bond) Programme to fund the construction of Itimpi Phase 2. The Company also met its financial obligations, including a Green Bond coupon payment of US$ 12.75 million, reflecting a strong liquidity position and disciplined financial stewardship.
Continued investor confidence in our strategy is a clear endorsement of the Board’s track record in project execution and value creation.
Placing Sustainability and ESG at Our Core
Sustainability is foundational to our strategy. In 2025, our operations displaced an estimated 57,000 T CO2e, contributing to national decarbonisation objectives. We strengthened our ESG framework and advanced our disclosures, including improved quantification and reporting of environmental and social impacts, particularly within the communities we operate in.
Governance and Leadership
The Board continued to provide strong oversight and strategic direction. In 2025, we strengthened our risk management protocols to address emerging sector challenges, including physical climate risks and cybersecurity.
The Road Ahead
As we look to 2026 and beyond, the Board remains optimistic. The commissioning of Itimpi Phase 2 will be a transformative milestone, effectively doubling our operational capacity. We are aligned with the Zambia National Energy Policy and are well positioned to meet the growing demand for clean, reliable, and affordable energy, while also adhering to the Sustainable Development Goals (SDGs) and Integrated Resource Plan (IRP) targets.
We will continue to leverage our technical expertise, financial innovation, and strategic partnerships to strengthen CEC Renewables’ position as a leading renewable energy developer and operator, delivering sustainable returns and a lasting positive impact.
Acknowledgements
I wish to express the Board’s sincere appreciation to our stakeholders, lenders, and partners for their continued trust and support. A special thanks also goes to our parent Company, CEC PLC, for its strategic guidance and collaborative partnership.
OWEN SILAVWE
Chairperson
CEC Renewables Limited
