Cameroon’s prometal group secures direct electricity access from national dams

The Cameroonian government has granted a significant concession to Prometal, a leading steel processing entity in Cameroon and Central Africa. The industrial group is now authorized to secure 90 megawatts of power capacity directly from Electricity Development Corporation (EDC), the nation’s state-owned electricity asset management firm. Finalizing the necessary contracts is scheduled for a series of meetings from June 8 to 12, 2026, to be held at the Prime Minister’s offices in Yaoundé. A detailed roadmap for this agreement was outlined in a letter dated June 1, 2026, bearing the signature of Secretary General Séraphin Magloire Fouda and addressed to Gaston Eloundou Essomba, the Minister of Water and Energy.

Prometal becomes second major industry to connect directly to Cameroonian dams

Key discussions will center on the specialized tariff structure that has been in place for Prometal since February 2025, alongside the final drafting of the comprehensive contractual agreements. This arrangement is underpinned by two primary documents: a direct supply contract between EDC and the steel manufacturer, and a compensation agreement between EDC and the Société Camerounaise d’Électricité (Socadel), which recently emerged from the restructuring of Eneo. Upon the execution of these agreements, Prometal will achieve the distinction of being only the second company in Cameroon to draw its electrical power directly from the source, following in the footsteps of the Compagnie Camerounaise d’Aluminium (Alucam).

The historical precedent set by Alucam significantly influenced this new framework. For many years, Alucam has been recognized as Cameroon’s largest electricity consumer, with its operational demands sometimes accounting for up to 40% of the nation’s total power output. This aluminum industry giant is directly linked to the Edéa dam. Both the Edéa and Songloulou dams are now part of Socadel’s managed assets. In contrast, Prometal will receive its power supply from facilities under EDC’s direct management, specifically the Lom Pangar dam with its 30 MW powerhouse and the Memve’élé dam, which boasts a peak production capacity of 211 MW.

Prometal’s energy consumption triples in three years

This transition to a direct power supply is a crucial step aligned with the steel processor’s ambitious industrial expansion. Operating five units within the Douala-Bassa industrial zone — Prometal 1, 2, and 3, along with Profab and Progaz — the group’s energy requirements have surged dramatically. Internal data indicates an increase from 26 MW in 2024 to 40 MW in 2025. Projections show this demand climbing to 60 MW in 2026 and further to 90 MW by 2027, coinciding with the launch of Proalu, a sixth facility dedicated to manufacturing aluminum sheets and electrical cables.

For an industrial player of Prometal’s magnitude, guaranteeing a stable energy supply and effectively managing per-kilowatt-hour costs are paramount for maintaining competitiveness. The conventional electricity grid, plagued by inherent strains across its generation, transmission, and distribution segments, could no longer reliably accommodate such a significant increase in demand without jeopardizing manufacturing operations. Direct power provision from EDC offers a strategic advantage, enabling a tariff structure based on water rights, thereby bypassing the complexities and costs associated with downstream system components.

EDC identifies direct supply as a catalyst for new project funding

While EDC maintains a formal stance, the significant financial benefits of this arrangement are evident. The corporation’s business model fundamentally relies on billing for water usage rights and subsequently reinvesting these revenues into developing new infrastructure. However, persistent payment challenges from Socadel, its long-standing client, have strained this financial mechanism. The entry of Prometal as a reliable and solvent counterparty provides a much-needed boost to EDC’s cash flow. An executive within the company highlighted several development projects currently awaiting financing, including the Mbakaou power plant, whose capacity is slated to expand to 400 MW, the Memve’élé 2 initiative, and a proposed 50 MW solar power facility under consideration at the Memve’élé site.

Prometal’s financial contribution to Cameroon’s electricity sector is substantial. From 2016 to 2025, the group remitted a total of 42 billion FCFA in payments to Eneo (now Socadel) and the Société Nationale de Transport d’Électricité (Sonatrel). This equates to an average annual injection of 4.2 billion FCFA into the power industry. The redirection of these significant financial flows towards EDC has the potential to alter the existing balance among power operators and expedite the streamlining of the asset management segment.