Prometal secures direct power supply from Cameroon dams for expansion

The Cameroonian government has granted Prometal the green light to secure 90 megawatts of power directly from the Electricity Development Corporation (EDC), the state-owned electricity asset management company. Final contract agreements will be hammered out during a series of consultations scheduled from June 8 to 12, 2026, at the Prime Minister’s office in Yaoundé. A directive dated June 1, 2026, signed by Secretary-General Séraphin Magloire Fouda and addressed to Minister of Water and Energy Gaston Eloundou Essomba, outlines the roadmap for implementation.

Prometal joins elite group of Cameroon’s direct dam-powered industries

Negotiations will focus on the special pricing terms granted to Prometal since February 2025 and the final drafting of contractual documents. Two agreements will be signed: a supply contract between EDC and the steel group, and a compensation agreement between EDC and the newly restructured Cameroonian Electricity Company (Socadel), formerly Eneo. Once executed, Prometal will become Cameroon’s second industrial player to draw electricity straight from dam sources, following in the footsteps of the Cameroonian Aluminium Company (Alucam).

The Alucam precedent has shaped this arrangement. Long recognized as Cameroon’s top electricity consumer—at times accounting for up to 40% of national output—the aluminium giant is directly connected to the Edéa dam. Both the Edéa and Songloulou dams now fall under Socadel’s portfolio. Prometal, however, will be powered by EDC-operated facilities: Lom Pangar, including its 30 MW foot-of-dam plant, and Memve’élé, which delivers peak output of 211 MW.

Steel group’s energy appetite triples in three years

This direct supply shift aligns with Prometal’s industrial growth trajectory. Operating five facilities in the Douala-Bassa industrial zone—Prometal 1, 2, and 3, Profab, and Progaz—the company’s electricity demand surged from 26 MW in 2024 to 40 MW in 2025. Projections place consumption at 60 MW in 2026 and 90 MW in 2027, coinciding with the launch of Proalu, a sixth plant dedicated to aluminium sheet and electrical cable production.

For a heavyweight industrial player like Prometal, securing stable power supply and controlling kilowatt-hour costs are non-negotiable for maintaining competitiveness. The traditional grid, plagued by chronic inefficiencies in generation, transmission, and distribution, could no longer absorb this load growth without jeopardizing production lines. Direct sourcing from EDC introduces a tariff model tied to water rights, bypassing downstream network segments entirely.

EDC positions direct deals as catalyst for new energy projects

From EDC’s perspective, the official rationale belies a clear financial incentive. The company’s business model hinges on billing water royalties and reinvesting proceeds into new infrastructure. However, Socadel’s payment delays—a longstanding customer—have strained this system. Prometal’s arrival as a financially reliable counterparty injects much-needed liquidity into the equation. Insiders point to stalled projects awaiting funding: the 400 MW Mbakaou plant expansion, the Memve’élé 2 initiative, and a planned 50 MW solar farm at the Memve’élé site.

Prometal’s financial footprint in Cameroon’s electricity sector is substantial. Between 2016 and 2025, the group paid 42 billion CFA francs in bills to Eneo (now Socadel) and the National Electricity Transport Company (Sonatrel), averaging 4.2 billion CFA francs annually. Redirecting these flows to EDC could reshape sector dynamics and hasten the consolidation of state-owned power assets.