Government Emphasizes Need to Diversify Zambia’s Energy Mix

Ministry of Energy has emphasized the need to diversify the country’s energy mix from hydro power in order to meet the increasing electricity demand.

In his presentation at the Zambia Chamber of Commerce and Industry (ZACCI) Energy Breakfast meeting in Lusaka, Ministry’s Assistant Director- Mafayo Ziba, said access to electricity has increased from 34 percent to 59 percent, which is an indication that 52 percent of the population is connected to the national grid, while rural access has also moved from 8 percent to 33 percent.

Mr. Ziba stated that the demand is expected to increase rapidly as the mines remain the biggest consumer of electricity, followed by households and industries.

He added that Government is trying to attract more investments in the energy sector through various reforms and regulations that have been put in place.

Mr. Ziba said the reforms include the recently launched Open Access Regulatory Framework, Net Metering, Mutli-Year Tariff Framework which was approved for 3 years effective 1st May 2023 to 2027 and the Energy Single Licensing System, a one stop shop launched 1st June, 2024, aimed at boosting investment in the energy sector.

“An enabling environment has been put in place expecially with the new reforms that have come in,” Mr. Ziba stated.

And Energy Regulation Board (ERB) Economic Analyst -Electricity, Lungowe Mukumbuta noted that there is a lot of interest in people wishing to develop power projects.

“In view of this, we have reduced the timeline for approval of Power Purchase Agreements (PPA)s and Power Supply Agreements (PSA)s from 30 days to 48 hours in a bid to encourage investments in the sector,” Ms. Mukumbuta said.

Meanwhile, ZACCI President Anthony Kabaghe noted that load shedding is detrimental to Small and Medium Enterprises (SMEs) who are the backbone of the economy.

Mr. Kabaghe said the meeting is therefore aimed at facilitating honest dialogue on the current crisis and explore possible solutions.

“We believe that sustainable economic growth is built on a strong and supportive business environment, it is our mission therefore to advocate for policy reforms and conditions that foster business growth, competitiveness and resilience.”

“This breakfast meeting is an opportunity to confront this important issue directly by bringing together stakeholders including members of the business community, industry leaders, sector representatives and ZESCO, our national provider,” Mr. Kabaghe asserted.

He added that the Goal of the meeting is to facilitate honest dialogue on challenges brought about load shedding and explore possible solutions.