Zambia is a landlocked country in Southern Africa with a population of over 19 million people. The country has significant potential for renewable energy including solar, hydro and wind power. However, despite this potential, Zambia's energy sector faces numerous challenges, including inadequate infrastructure, limited access to electricity in rural areas, and high energy costs.

The country's energy mix is dominated by hydropower, which accounts for around 90% of its electricity generation with the vast majority operated by ZESCO. However, the reliance on hydropower makes the country vulnerable to fluctuations in water levels, which can lead to power outages and load shedding. In recent years, Zambia has also started exploring other renewable energy sources such as solar and wind power to diversify its energy mix. 

Access to energy in 2020 was 44.5%, resulting in 7.2 million households without power, while access to clean cooking is 10.5%. Zambia has set ambitious targets to increase access to electricity and to transition to a more sustainable energy system, with a target for universal electrification by 2030. However, achieving these targets will require significant investment in infrastructure, policy reforms, and increased private sector participation. This overview will provide a detailed analysis of the current state of the energy sector in Zambia, the challenges it faces, and the opportunities for growth and development in the sector. 

Grid Energy 

Zambia has 2,800MW of installed electricity generation capacity, with hydroelectric power accounting for about 90% of the country's electricity generation. Zambia has significant hydroelectric potential, with several large dams along the Zambezi River and its tributaries. The largest of these is the Kariba Dam, which has a capacity of 1,626 megawatts (MW) and accounts for around half of the country's installed generation capacity. Zambia's reliance on hydroelectric power also makes the country vulnerable to climate change and other factors that can affect water availability, such as droughts. In recent years, low water levels in the Kariba Dam have led to reduced electricity generation and power shortages in the country, highlighting the need for a more diversified generation mix. 

In addition to hydroelectric power, Zambia also generates electricity from thermal sources, primarily coal-fired power plants accounting for around 10% of total generation capacity. However, the Zambian government has expressed interest in expanding the country's thermal generation capacity in the future. Zambia also has some potential for solar and wind power generation, particularly in the country's southern and western regions. However, these sources currently make up a very small portion of the country's electricity mix. 

The mining sector is a major user of electricity in Zambia, accounting for a significant portion of the country's electricity consumption. Mining companies in Zambia typically rely on the national power grid for their mineral processing and smelting electricity needs, although some larger companies also have their own power generation facilities. However, the high demand for electricity from the mining sector can also strain the country's power supply, particularly during periods of low water levels in hydroelectric dams. Although there are pockets of private sector activity in generation, transmission and distribution, the bulk of power generation and distribution in Zambia is carried out by Zambia Electricity Supply Corporation (ZESCO).  

Off-Grid Energy 

Around 70% of Zambia's population does not have access to grid electricity, and many of these people live in remote areas that are difficult to reach with traditional grid infrastructure. To address this issue, a number of off-grid energy solutions have been implemented in Zambia, including solar home systems, mini-grids, and other renewable energy technologies. The country has a vibrant solar home system market, with several key private sector players active in the country offering Pay as You Go solutions. Additionally, the mini-grid sector is experiencing growth, with currently over 20 installed and more than 200 planned over the coming 3 years. One of the key initiatives in Zambia's off-grid energy sector is the Rural Electrification Program, which aims to expand access to electricity through the installation of mini-grids and stand-alone solar systems.  

While off-grid energy solutions have made significant progress in increasing access to electricity in Zambia, challenges remain. These include the high cost of energy technologies, limited funding for rural electrification projects, and a lack of technical expertise and knowledge among rural communities. Another key challenge in providing energy access unique to Zambia is the size of the country, with vast distances making accessibility to rural communities a challenge.  These challenges are being addressed through a suite of interventions including investment, policy and technical support.

Zambia's energy sector is governed by a range of policy frameworks, laws, and regulations that aim to promote access to energy, increase energy efficiency, and promote the use of renewable energy sources. Some of the key policies, laws, and regulations relevant to Zambia's energy sector include: 

• National Energy Policy (2019): The National Energy Policy aims to promote sustainable and efficient use of energy resources, increase access to energy, and promote private sector investment in the energy sector. The policy also sets targets for the use of renewable energy sources and energy efficiency measures. 
• Electricity Act: The Electricity Act regulates the generation, transmission, distribution, and supply of electricity in Zambia. The act also provides for the establishment of the Energy Regulation Board (ERB), which is responsible for regulating the energy sector. 
• Renewable Energy Feed-in Tariff (REFIT): The REFIT provides a framework for the development of renewable energy projects in Zambia by providing incentives for renewable energy producers. The REFIT sets a fixed tariff for renewable energy sources, which provides a guaranteed return on investment for renewable energy developers. 
• Rural Electrification Master Plan: The Rural Electrification Master Plan aims to increase access to electricity in rural areas by promoting the use of renewable energy sources, such as solar power. The plan sets targets for the electrification of rural areas and provides a framework for the development of off-grid and mini-grid systems. 
• Renewable Energy Strategy and Action Plan (RESAP): The RESAP provides a roadmap under which the country is expected to implement various identified market interventions that will transform the market and catalyse the accelerated diffusion of renewable energy technologies. 
• Gender Equality Strategy and Action Plan for the Energy Sector (2022): The GESAP will help to enhance socio-economic development by ensuring that men and women of different backgrounds in urban and rural areas benefit equally from energy services, job opportunities and investments in the energy sector.  
• Energy Efficiency Strategy and Action Plan: The EESAP, with its set of prescribed actions, was developed to support the efficient use of energy towards improved energy security.   

These policies, laws, and regulations provide a framework for the development of Zambia's energy sector and promote the use of renewable energy sources and energy efficiency measures. However, the implementation and enforcement of these policies and regulations remain a challenge, and more efforts are needed to ensure their effective implementation. 

The Zambian energy sector has a complex institutional set up that involves multiple government agencies, regulatory bodies, and private sector actors. The institutional set up is aimed at promoting effective regulation, promoting investment, and ensuring that the country's energy needs are met in a sustainable and efficient manner. 

The key institutions involved in the Zambian energy sector include: 

• Ministry of Energy: The Ministry of Energy is responsible for the overall development and management of the energy sector in Zambia. The Ministry sets policies and strategies for the sector and oversees the implementation of energy projects and programs. 
• Energy Regulation Board (ERB): The ERB is the regulatory body for the energy sector in Zambia. The board is responsible for licensing energy companies, setting energy tariffs, and ensuring compliance with energy laws and regulations. 
• Rural Electrification Authority (REA): The REA is responsible for the implementation of the Rural Electrification Master Plan, which aims to increase access to electricity in rural areas. The authority is also responsible for the development of off-grid and mini-grid systems in rural areas. 
• Zambia Electricity Supply Corporation (ZESCO): ZESCO is the state-owned utility company responsible for the generation, transmission, and distribution of electricity in Zambia. The company operates several hydropower plants and is responsible for the management of the national electricity grid. 
• Private sector actors: The Zambian energy sector also includes several private sector actors, including renewable energy developers, energy service companies, and independent power producers. Private sector actors play an important role in promoting investment in the sector and supporting the development of renewable energy projects. 
• Rural Electrification Authority (REA) Rural Electrification Authority developed a Rural Electrification Master plan that acknowledged challenges to get people to connect to the grid, promoting rural growth centres as a solution. 

The institutional set up in the Zambian energy sector provides a framework for effective regulation and promotes private sector investment in the sector. However, the effectiveness of the institutions depends on the implementation and enforcement of energy laws and regulations, and more efforts are needed to improve the capacity of institutions to regulate and manage the sector effectively. 

Industry Bodies  

Zambia Renewable Energy Association (ZARENA) 

The Zambia Renewable Energy Agency (ZARENA) is an interest group for renewable energy stakeholders in Zambia. ZARENA's mission is to promote and advocate for the increased use of renewable energy by developing an effective network of members and stakeholders, emphasizing the need for quality and best practice throughout the sector.  

Solar Industry Association Zambia (SIAZ)  

The Solar Industry Association Zambia (SIAZ) is a non-profit organization that represents companies and individuals involved in the solar energy industry in Zambia. SIAZ aims to promote the development of the solar industry in Zambia, to increase access to clean and affordable energy, and to promote sustainable economic development. It has 80 registered members, and its activities focus on working with the government to develop policy and regulations that will promote the solar industry and best practice among its members. SIAZ provides a platform for its members to collaborate and share knowledge and expertise, and to engage with government and other stakeholders to promote supportive policies and regulations for the solar industry in Zambia. SIAZ also provides training and capacity building programs for its members and for individuals interested in pursuing a career in the solar industry. 

Zambia Off-Grid Energy Task Force (ZOGTF) 

The Zambia Off-Grid Energy Task Force is a multi-stakeholder group that was established to accelerate the development of off-grid energy solutions in Zambia. The task force is composed of representatives from government agencies, private sector organizations, non-governmental organizations, and development partners. They seek to address the energy access gap by promoting the development of off-grid energy solutions such as mini-grids, solar home systems, and other renewable energy technologies. 

The task force has several objectives, including creating a supportive policy environment for off-grid energy solutions, building the capacity of local stakeholders to develop and operate off-grid energy systems, and mobilizing financing for off-grid energy projects. To achieve these objectives, the task force engages in a range of activities, such as conducting research on the off-grid energy sector, providing technical assistance to mini-grid developers and other stakeholders, and organizing workshops and other events to promote knowledge sharing and collaboration. 

African Mini-Grids Development Association  (AMDA)

The African Mini-Grids Development Association (AMDA) is a non-profit industry association that aims to promote the development of mini-grids in Africa, particularly in rural and remote areas. AMDA aims to increase access to clean and affordable electricity in Africa by advocating for supportive policies, building the capacity of mini-grid developers, and promoting collaboration among stakeholders.  

In Zambia, AMDA worked with the government of Zambia to create a supportive policy environment for mini-grids, including the development of  mini-grid regulations and guidelines. They have also provided training and capacity building programs for mini-grid developers and entrepreneurs. AMDA has also partnered with other organizations to implement mini-grid projects in Zambia.  

Academia 

University of Zambia Solar Centre of Excellence  (UNZA-CEZ)

The University of Zambia (UNZA) Solar Excellence Centre (CEZ) is a research and training centre focused on the development of solar energy solutions in Zambia. UNZA-CEZ conducts research on solar energy technologies, and provides training and capacity building programmes for students, researchers, and industry professionals. The centre collaborates with government agencies, private sector organisations, and international development partners to promote the development of the solar industry in Zambia. UNZA-SOLCOE focus on uptake of solar technologies, including testing, demonstration, research and development, and consultancy. 

Centre for Energy Environment and Engineering Zambia (CEEEZ)

The Centre for Energy Environment and Engineering Zambia (CEEEZ) was found in 1994 with the aim of promoting the use of renewable energy and energy efficiency technologies to support sustainable economic development and reduce greenhouse gas emissions. CEEEZ conducts research on renewable energy technologies such as solar, wind, and biomass, and provides training and capacity building programmes for students, researchers, and industry professionals. The centre also offers consultancy services and works with government agencies, private sector organizations, and international development partners to promote the adoption of sustainable energy solutions in Zambia. 

Civil Society Organisations 

Zambian Gender and Energy Network (ZGEN) 

The Zambian Gender and Energy Network (ZGEN) is a platform within the Ministry of Energy established to promote gender equality in the energy sector in Zambia. The network, which is comprised of multi-sectoral stakeholders, aims at promoting women's participation and leadership in the energy sector, as well as advocating for gender-responsive energy policies and programmes. ZGEN’s activities include research and advocacy, capacity building, and, networking and collaboration. 

Zambia Climate Change Network  

An umbrella organisation that coordinates civil society organisations, the main one is Climate and Environmental Justice Zambia. The Zambia Climate Change Network is a coalition of civil society organizations, academic institutions, and individuals working to address the impacts of climate change in Zambia. The network was established in 2007 with the aim of raising awareness about climate change and advocating for policies and programs that promote climate resilience and sustainability. The Zambia Climate Change Network conducts research on the impacts of climate change in Zambia, and works to raise awareness of these impacts 

Southern African Institute for Policy and Research (SAIPAR)

The Southern African Institute for Policy and Research (SAIPAR) is a non-profit research organization based in Lusaka, Zambia. SAIPAR aims to provide research-based policy recommendations to promote sustainable development and reduce poverty in Southern Africa. 

SAIPAR conducts research across a range of topics including governance, economics, and social issues, and collaborates with other organizations to provide training and capacity building programs. They also provide a platform for dialogue and debate on policy issues through seminars, workshops, and conferences. In addition to their research and policy work, SAIPAR is also involved in community outreach programs, focusing on education and youth empowerment initiatives. SAIPAR's ultimate goal is to contribute to the development of a more equitable and prosperous Southern Africa. 

Private Sector 

The private sector has also been active in investing in renewable energy projects, particularly in the solar and hydroelectric sectors. Several independent power producers have entered the market, with support from development finance institutions and other investors. These companies are developing projects ranging from small-scale solar installations for households to larger-scale projects for industrial and commercial customers. 

Some key players in the private sector include mini-grid developers (Muhanya Solar, Standard Microgrid); SHS providers (Vitalite, Fenix International, Kua Solar); and Bioenergy practitioners (Petauke Biogas, Zhongkhai). 

EU Increased Access to Electricity and Renewable Energy Production Project (IAEREP)

The EU IAEREP in Zambia is a project aimed at improving energy access and promoting the development of renewable energy in rural areas of Zambia. The project is funded by the European Union and implemented by the Government of Zambia.

The project focuses on increasing access to electricity for rural communities through the development of mini-grids and the installation of solar home systems. The project also supports the development of renewable energy production through the installation of small-scale hydroelectric plants and the promotion of energy efficiency measures.

In addition to the infrastructure development activities, the project also includes a range of capacity building and training programs for local communities, energy entrepreneurs, and government officials. These programs aim to build the skills and knowledge necessary to develop and operate renewable energy systems, as well as to create a supportive policy and regulatory environment for renewable energy development in Zambia.

Africa Clean Energy Technical Assistance Facility (ACE TAF)

ACE-TAF supported the development of the 'Customs Handbook' which assists the officers at the border points to identify solar equipment/spares etc., which are tax exempted as they are brought into the country. ACE-TAF also led the Fiscal Incentives subcommittee under the Off Grid Task Force, designing and promoting fiscal incentives for off-grid renewable energy technologies in Zambia.

Beyond the Grid Fund for Zambia (BGFZ)

International consultancy firm NIRAS supported the implementation of the Beyond the Grid Fund for Africa (BGFA) programme in six African countries, including Zambia, beginning in July 2022. In Zambia, the NIRAS team supports the Off-Grid Task Force Secretariat in the work of coordinating and sharing information to address market change for off-grid energy solutions. BGFZ provides support to an off-grid policymaking task force under the Ministry of Energy. Funded by SIDA and USAID with EUR 20 million, the fund aims to provide 1 million Zambians with access to clean energy and has to date supported 148,000 connections, mainly through Solar Home Systems.

USAID Power Africa

USAID’s Power Africa programme provides policy support through embedded advisors, donor coordination and the South Africa Energy Program. Their Scaling Solar Fund provided financial and technical support to on and off-grid initiatives, providing technical support on tariffs, energy policy development, capacity building for grid integration of solar and wind, and Power Purchase Agreements (PPAs).

Electricity Service Access Project

The Ministry of Energy (MOE) is implementing the World Bank funded Electricity Service Access Project (ESAP) through the Rural Electrification Authority (REA). The ESAP is for a period of 5 years, effective from June 2018. The objective of the ESAP is to increase electricity access in Zambia’s targeted rural areas. There are three components to the project:

• Electricity access expansion: providing financing for on-grid connections in rural areas using the approaches under the connection fee subsidy program. To support the ‘last mile’ connections, the project is also financing critical distribution network reinforcements and extensions through applying low-cost technologies where appropriate that will enable ZESCO to add new connections to the grid, complementing ongoing access expansion efforts.
• Off-grid electricity access expansion: funding allowed upstream activities to enable private sector participation in rural off-grid electrification, including identifying and scoping off-grid sites, helping to address existing regulatory impediments, building the needed capacity at key institutions, and designing financial mechanisms.
• Capacity building and project implementation support: financing technical assistance to ensure that the project reaches its objective of enhancing and improving the enabling environment needed for a substantially scaled-up electrification effort.

Global Energy Transfer Feed-in Tariffs (GET FiT)

The main objective of the GET FiT Program is to assist East African nations in pursuing a climate resilient low-carbon development path resulting in growth, poverty reduction and climate change mitigation. In Zambia, GET FiT is backed by German development bank KfW who has announced the award of six solar photovoltaic (PV) projects with a combined capacity of 120MW and is an official procurement initiative of the Zambian government.

Development Bank of Zambia

Providing short, medium and long-term finance to support the Government of Zambia’s economic development strategies for growth, wealth and job creation, infrastructure development, improved service delivery and overall poverty reduction. The finance offered includes for renewable energy projects.