Energy Sector

ZAMBIA’S ENERGY SECTOR OVERVIEW

Zambia’s energy resources include electricity (hydropower), petroleum, coal, biomass and renewable energy. It is only petroleum which is wholly imported in the country.

The Energy Sector in Zambia consists of three main sub-sectors namely: Electricity, Renewable Energy and Petroleum.

ELECTRICITY SUB-SECTOR

In the electricity subsector, the national installed generation capacity increased to 3,871.32 MW in 2024, up from 3,811.32 MW in 2023. This growth was driven by additional capacity from solar power plants, notably the Kitwe solar plants (CEC’s Itimpi & Riverside), which expanded from 34 MW in 2023 to 94 MW in 2024. The electricity generation landscape continued to be dominated by hydroelectric plants with a share of 82 percent. Coal power plants and solar plants also contributed to the energy mix at 9 and 5 percent respectively.

National electricity generation in the first half of 2024 stood at 8,113.02 GWh, compared to 9,486.19 GWh during the same period in 2023, reflecting a decline of approximately 14.5%. This reduction was largely attributed to a decrease in output from major hydroelectric stations such as Kafue Gorge (3,187.35 GWh in 2024, down from 3,805.87 GWh in 2023) and Kafue Gorge Lower (1,547.54 GWh in 2024, compared to 2,193.73 GWh in 2023). Other notable changes included a marginal increase in generation from Lunzua (53.13 GWh in 2024, up from 35.94 GWh in 2023). 

Zambia has licensed power traders that engage in import and export of power in the SAPP region, these are EN Power exporting to DR Congo, Kanona exporting to DR Congo and South Africa and GreenCo importing from Mozambique and South Africa. 

ZAMBIA’S INSTALLED ELECTRICITY GENERATION CAPACITY

 

Table 1: Installed and Available Generation Capacity (MW)

Technology

Licensee

Station

2023 (MW)

2024 (MW)

Hydro

Itezhi-tezhi Power Corporation

Itezhi-tezhi

120.00

120.00

Lunsenfwa Hydro Power Company

Lunsemfwa

24.00

24.00

Lunsenfwa Hydro Power Company

Mulungushi

32.00

32.00

Rural Electrification Authority

Kasanjiku

0.64

0.64

Zengamina Power Company

Ikelengi

0.70

0.70

ZESCO Limited

Chishimba Falls

6.00

6.00

ZESCO Limited

Kafue Gorge

990.00

990.00

ZESCO Limited

Kafue Gorge Lower

750.00

750.00

ZESCO Limited

Kariba North bank

720.00

720.00

ZESCO Limited

Kariba North Extension

360.00

360.00

ZESCO Limited

Lunzua River

14.80

14.80

ZESCO Limited

Lusiwasi

12.00

12.00

ZESCO Limited

Lusiwasi upper

15.00

15.00

ZESCO Limited

Musonda Falls

10.00

10.00

ZESCO Limited

Shiwang’andu

1.00

1.00

ZESCO Limited

Victoria Falls

108.00

108.00

Coal

Dangote Cement Zambia Limited

Dangote Power Plant

30.00

30.00

Maamba Energy Limited

Maamba Power Plant

300.00

300.00

Diesel

Copperbelt Energy Corporation

Bancroft

20.00

20.00

Copperbelt Energy Corporation

Kankoyo

10.00

10.00

Copperbelt Energy Corporation

Luano

40.00

40.00

Copperbelt Energy Corporation

Maclaren

10.00

10.00

ZESCO Limited

Chama

1.45

1.45

ZESCO Limited

Lundazi

1.75

1.75

ZESCO Limited

Shang’ombo

1.60

1.60

Solar

Bangweulu Power Company Limited

LSMFEZ

54.00

54.00

Chief Chibwika Chiefdom

Development Trust (REA)

Chibwika

0.03

0.03

Copperbelt Energy Corporation

Itimpi & Riverside

34.00

94.00

Endeva Power Zambia Limited

Milala Eco Lodge

0.01

0.01

Engie Power Corner Zambia

Chitandika

0.03

0.03

Kafue Gorge Regional Training

Centre

Kabamba

0.04

0.04

MPower

Nsombo Village

0.01

0.01

Muhanya Solar Limited

Sinda Village

0.03

0.03

Ngonye Power Limited

LSMFEZ

34.00

34.00

Rural Electrification Authority

Samfya

0.06

0.06

Solera Power Company Limited

Luangwa Bridge

0.01

0.01

Solera Power Vending Machine

Chanyalubwe

0.03

0.03

Solera Power Vending Machine

Chikomeni

0.02

0.02

Solera Power Vending Machine

Kacholola, Nyimba

0.02

0.02

Solera Power Vending Machine

Kapasa

0.02

0.02

Solera Power Vending Machine

Ken, Katete

0.03

0.03

Technology

Licensee

Station

2023 (MW)

2024 (MW)

 

Solera Power Vending Machine

Madzi-A-Tuwa, Lumezi

0.03

0.03

Solera Power Vending Machine

Taferansoni

0.03

0.03

Standard Micro-Grids

Kafue

0.02

0.02

Standard Micro-Grids

Ngwerere

0.01

0.01

HFO

Ndola Energy Company Limited

Ndola

110.00

110.00

Total Installed Capacity

 

3,811.37

3,871.37

Zambia’s Electricity Sector Market Structure

Zambia’s electricity market is structured as a single-buyer market model with ZESCO acting as the unique off-taker and bulk retailer of electricity on the national interconnected system. Independent Power Producers (IPPs) contributes to electricity generation and operate their own assets but sell the electricity to ZESCO through Power Purchase Agreements (PPA).

Access to electricity

The proportion of the Zambian population with access to electricity is 34%.

 

Off-grid electricity market

There are several operational off-grid solutions in Zambia namely:

small hydro mini-grids

  1.  Hydro Power Station (1 MW) in Chinsali District
  2. Kasanjiku Hydro Mini Grid (0.64MW) in Mwinilunga Distric
  3. Zengamina Hydro Mini Grid (0.75 MW) Ikelenge District

Solar PV mini-grids

  1. Mpata Solar Mini Grid (0.06 MW) in Samfya District
  2. Engie Power Conner Solar Mini Grid in Kasengwa District
  3. Standard Micro Grid (0.025) in Ngwerere, Chongwe District
  4. Sorera Micro Grid ( ) in Luangwa District
  5. Muhanya Solar Micro Grid ( ) in Sinda District

RENEWABLE ENERGY SUB-SECTOR

  • In order to increase the utilisation of renewable energy resources, the Renewable Energy Feed-in Tariff (REFiT) Strategy aims at promoting private power investments in renewable energy and addressing barriers that hinder investments in this sub-sector.
  • The REFiT Strategy is being implemented through the Global Energy Transfer Feed in Tariff (GET FiT) Programme with support from KfW, a German Development Bank. The programme involves the development of 120 MW of solar PV and 100 MW of small hydro.
  • The GET FiT Programme is financed through a EUR 41 million grant provided by the German Development Bank (KfW). The grant is meant for Technical Assistance facility and a viability gap financing mechanism for small hydros.
  • However, this has not yet been actualised due to the challenges by the electricity utility company agreeing to perform the role of off-taker.

 Off-Grid Taskforce Initiative

The Off-Grid Taskforce is a government-led platform which brings together representatives of various Government ministries, statutory bodies, the private sector and the Cooperating Partners to coordinate initiatives and activities in the off-grid electrification space. The Taskforce was established with support from the Office of the Vice President and in cooperation with major Cooperating Partners in Zambia’s off-grid space and these include: European Union, World Bank, IFC, Swedish Embassy, DFID, AfDB and USAID. It’s a multi-stakeholder platform that identifies and addresses off-grid market barriers thereby improving conditions for investment in the Zambian off-grid space, with the ultimate goal of expanding electricity access in rural and peri-urban areas in line with government objectives.

Energy Efficiency and Conservation

This programme intends to address or promote efficient use and conservation of energy across all sectors of the economy e.g. LED bulks, efficient cook stoves and Liquefied Petroleum Gas (LPG).