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.
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
Solar PV mini-grids
RENEWABLE ENERGY SUB-SECTOR
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.
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).