Cameroon energy deal: prometal secures direct power supply from dams

The Cameroonian government has granted Prometal the green light to secure 90 megawatts of electricity capacity directly from the Electricity Development Corporation (EDC), the state-owned power utility. Finalizing the agreements will follow a series of consultations scheduled from June 8 to 12, 2026, at the Prime Minister’s office in Yaoundé. A formal directive dated June 1, 2026, and signed by Secretary-General Séraphin Magloire Fouda, outlines the roadmap for these negotiations.

Prometal joins elite group of direct dam-powered industries

The upcoming talks will finalize a custom tariff rate granted to Prometal since February 2025 and draft the definitive contract documents. Two key agreements will underpin this arrangement: a supply contract between EDC and the steel manufacturer, and a compensation contract between EDC and the newly restructured Société camerounaise d’électricité (Socadel), formerly Eneo. Upon signing, Prometal will join just one other Cameroonian company—Alucam, the Aluminium Company of Cameroon—in drawing electricity directly from the country’s dams.

The Alucam precedent remains a cornerstone of this model. Long recognized as Cameroon’s largest electricity consumer, Alucam’s demand once accounted for up to 40% of national output. It is directly connected to the Edéa dam, part of Socadel’s current infrastructure portfolio. Prometal, by contrast, will access power from EDC-operated facilities, including the Lom Pangar dam and its 30 MW downstream plant, as well as Memve’élé, which delivers peak output of 211 MW.

Energy demand soars as industrial expansion accelerates

Prometal’s shift to direct supply aligns with its rapid industrial growth. The group operates five facilities in the Douala-Bassa industrial zone—Prometal 1, 2, 3, Profab, and Progaz—with energy consumption rising sharply from 26 MW in 2024 to 40 MW in 2025. Forecasts project demand to reach 60 MW in 2026 and 90 MW in 2027, driven by the upcoming launch of Proalu, a sixth plant dedicated to aluminum sheet and electrical cable production.

For a heavy industry player of this scale, securing a stable power supply and controlling electricity costs are vital to maintaining competitiveness. The traditional grid, plagued by chronic inefficiencies across generation, transmission, and distribution, could no longer support this growth without disrupting production lines. Direct supply from EDC introduces a pricing model linked to water rights, bypassing the unstable downstream segments of the network.

EDC leverages deal to fund critical energy projects

From EDC’s perspective, the official rationale belies a strategic financial advantage. The company’s revenue model depends on water rights fees and reinvestment into new infrastructure. However, Socadel’s persistent payment delays have strained this system. Prometal’s entry as a reliable counterparty injects much-needed liquidity into EDC’s coffers. Insiders highlight several pending projects now poised for funding, including the 400 MW expansion of the Mbakaou plant, the Memve’élé 2 initiative, and a planned 50 MW solar farm at Memve’élé.

Prometal’s financial footprint in Cameroon’s power sector is substantial. Between 2016 and 2025, the group paid a total of 42 billion FCFA to Socadel and the Société nationale de transport d’électricité (Sonatrel), averaging 4.2 billion FCFA annually. Redirecting these payments to EDC could rebalance sector dynamics and accelerate consolidation within the state-owned segment. This shift underscores the growing role of industrial consumers in shaping Cameroon’s energy landscape.