Keeping the lights switched on

Zambia is addressing a significant energy shortage due to historical underinvestment in the sector, which contributed to extended blackouts during the 2024 drought. “The current installed capacity for generating electricity could have been adequate with sufficient water in the dams, but clearly this is not the case,” said finance and national planning minister Situmbeko Musokotwane in his 2026 budget speech. “The rising activities in the mining sector are increasing the demand for electricity. The current installed capacity will soon, therefore, become inadequate even with sufficient water resources.” Government interventions include diversifying the energy mix, improving the regulatory framework and introducing flexibility in the tariff structures. “Government has created an environment that enables the private sector to be active players in the energy sector, from generation to distribution, including importing and exporting. “Today, Zambia is considered by peers as one of the leading reformers in Africa. The coming on board of the private sector is positive to our local market because it complements the efforts of existing players like ZESCO,” he said. According to the Ministry of Information and Media, the country’s installed generation capacity is 4 576 MW (up from 3 100 MW in 2021), 84% of which is generated by hydropower, 9% by coal, 5% by heavy fuel oil and 3% by solar photovoltaic (PV). “The growth in demand is estimated to be between 150 MW and 200 MW per annum, presenting an opportunity for investment in electricity generation,” says the Zambia Development Agency. Incentives are in place for private sector investors to help the government achieve its target of generating 10 000 MW by 2031. Major reforms introduced to attract investment include Electricity Open Access Regulations, an Energy Single Licensing System, an Electricity Net Metering Programme and Zambia’s first Integrated Resource Plan (IRP). In June, the government announced the launch of a 15-year $275 million grid resilience programme, which “will leverage the integration of renewable energy projects, including solar generation and battery storage systems, thereby advancing Zambia’s transition towards a more diversified and climate-resilient energy mix”, according to Felix Nkulukusa, secretary to the Treasury. “By modernising distribution infrastructure, the country will be better positioned to manage future supply shocks, better facilitate regional power trading within the Southern African Power Pool and optimise electricity imports and exports when necessary,” he added. Zambia is also investing in mini-grids to connect 100% of households and businesses to the grid. Access to electricity in Zambia has risen from 30% in 2017 to currently nearly 50%. In collaboration with the World Bank, the Common Market for Eastern and Southern Africa (COMESA), the Africa Minigrid Development Association (AMDA) and other partners, the Government of Zambia is redoubling its efforts to invest in off-grid solar energy throughout the country to connect all Zambians. “Our target is to have at least 200 solar mini-grids operational by 2030, ensuring that every rural district in Zambia has access to clean, affordable and reliable electricity,” said Zambian energy minister Makozo Chikote in a statement. ER