Zambia's energy sector has long been reliant on hydroelectric power, which accounts for more than 80% of its electricity production. While hydroelectricity is a clean and renewable energy source, its heavy dependence on water availability makes it vulnerable to climatic variations. Prolonged periods of drought have drastically reduced water levels in major reservoirs like the Kariba Dam, one of the largest man-made lakes in the world (AP News). This has led to frequent power outages, or “load shedding,” which have severely impacted households, businesses, and industries alike. 

The consequences of these power outages are far-reaching. Small and medium enterprises (SMEs), which form the backbone of Zambia's economy, have been particularly hard-hit. Many businesses have had to curtail their operations or invest in costly diesel generators to stay afloat, increasing their operational costs. Additionally, essential services such as healthcare and education have been disrupted, exacerbating social challenges in the country.

Recognizing the urgency of the situation, the Zambian government has unveiled a multi-faceted plan to resolve the energy crisis. This strategic approach includes the following key initiatives: 

1. Diversification of Energy Sources 

To reduce reliance on hydroelectric power, the government is investing in alternative energy sources such as solar and wind energy. These renewable energy sources are less dependent on climatic conditions, offering a more stable and sustainable solution to the energy crisis. Several large-scale solar power projects are already underway, with international partners providing technical and financial support. For instance, the Integrated Resource Plan (IRP), approved in November 2023, outlines a roadmap for electricity development up to 2050, emphasizing investments in variable renewable energy sources like solar PV and wind power (Ministry of Energy, Zambia). 

2. Infrastructure Development 

Another critical component of the government’s plan is upgrading and expanding the national electricity grid. By modernizing the grid infrastructure, the government aims to reduce transmission losses and improve the efficiency of electricity distribution. This effort includes developing new power plants, such as the 100 MW Solar PV power plant in Chisamba, scheduled for completion in December 2024 (Ministry of Energy, Zambia). 

3. Private Sector Engagement 

The government is actively encouraging private investment in the energy sector to boost capacity and foster innovation. Public-private partnerships (PPPs) are being promoted to attract investors who can bring expertise and capital to the table. For instance, Maamba Collieries, in collaboration with local shareholders, plans to construct a 300 MW coal-fired power plant at an estimated cost of $400 million, starting in August 2024 (Reuters). 

4. Regional Cooperation 

Zambia is also exploring partnerships with neighboring countries to import electricity and share best practices in energy management. Regional cooperation through organizations like the Southern African Power Pool (SAPP) can help mitigate the immediate effects of the energy shortage while providing long-term solutions through shared resources and expertise.

The successful implementation of the government’s energy plan could have transformative effects on Zambia’s economy and society. Improved energy availability will enable businesses to operate more efficiently, fostering economic growth and job creation. It will also enhance the delivery of essential services, such as healthcare and education, improving the overall quality of life for Zambians. 

Moreover, diversifying the energy mix and investing in renewable energy sources will reduce Zambia’s carbon footprint, aligning with global efforts to combat climate change. By positioning itself as a leader in renewable energy development in the region, Zambia could attract additional investment and technical expertise, further strengthening its energy sector.

While the government’s plan is ambitious and promising, several challenges remain. Securing sufficient funding for large-scale projects, navigating bureaucratic hurdles, and ensuring timely implementation are critical obstacles that need to be addressed. The International Monetary Fund (IMF) recently approved a $570 million payout to Zambia, increasing its loan to $1.7 billion, which could provide a much-needed financial boost to support these initiatives (Reuters). 

Additionally, public awareness and community involvement are essential to the success of these initiatives, as they can help build support and ensure the sustainability of the projects. Collaboration between the government, private sector, international partners, and local communities will be crucial. Transparent communication and accountability will also play a significant role in maintaining public trust and ensuring the effective execution of the plan.

Zambia’s energy crisis presents a formidable challenge, but it also offers an opportunity for transformation. By diversifying its energy sources, upgrading infrastructure, engaging the private sector, and fostering regional cooperation, Zambia is laying the groundwork for a more resilient and sustainable energy sector. While the road ahead may be long and fraught with challenges, the government’s proactive approach provides hope for a brighter and more energy-secure future.

Information Sources:

• Beyond the Pivot Episode #1

• Drought is parching the world’s largest man-made lake, stripping Zambia of its electricity

• Zambia mining firm to build 300 MW coal-fired power plant

• IMF approves $570 mln Zambia payout, increases loan to $1.7 bln

• Ministry of Energy’s Integrated Resource Plan (IRP)

• PRESS STATEMENT ON THE ELECTRICITY SITUATION IN ZAMBIA