Powered up: Chisamba solar plant supplies 100MW to the national grid. Photo: Supplied by Zesco
A devastating drought in 2023–2024 all but crippled Zambia’s power sector, draining rivers and reservoirs and cutting generation to 1 680 megawatts against demand of 2 400 MW.
Households were left in the dark, industries slowed and the risks of relying on hydropower for more than 80% of electricity were laid bare.
With that shock still fresh, the government is now repositioning the energy sector through reforms designed to fast-track domestic and foreign investment and diversify the power mix.
Reforms include the Electricity Open Access Initiative, which allows power producers to sell electricity directly to consumers using public and private transmission networks, alongside net metering, which enables households and firms with surplus solar power to feed electricity into the national grid.
Bureaucratic bottlenecks have been cut, with projects that meet legal and regulatory requirements now approved within 48 hours to speed up implementation, energy minister Makozo Chikote said.
Project pipelines from state power utility Zesco show solar energy leading the expansion drive, alongside new coal and wind developments, while nuclear power remains a longer-term option.
Harnessing the sun
The government plans to add 1 000 MW of solar power to the national grid by 2027, with projects spread across the country but may exceed the target given the growing number of companies lining up to invest.
The first major project to go live is the 100 MW Chisamba solar plant built by PowerChina International Group in partnership with the government at a cost of $100 million. Located about 100km from the capital Lusaka, it is Africa’s fifth largest solar plant and a flagship of the country’s energy transition.
“This facility is a major step in Zambia’s efforts to shift from hydroelectric dependence, which has proven vulnerable to climate shocks such as prolonged droughts,” President Hakainde Hichilema said while launching the project.
A second 100 MW at the same site is already under construction. Beyond national-scale projects, the government is also rolling out decentralised solar generation. In November, cabinet approved the Presidential Constituency Energy Initiative, which will develop 2 MW solar plants in each of Zambia’s 156 constituencies, adding 312 MW to the grid.
The treasury has already released $115 million of the $230 million required, with the balance to be raised from financial institutions, according to Nicholas Phiri, the permanent secretary in the ministry of local government which is spearheading the programme.
Meanwhile, Kiyona Energy Limited, a Zesco subsidiary, is targeting more than 300 MW of renewable capacity by 2028 and plans to roll out rooftop solar systems to 130 000 households.
Investors come to town
Investment momentum is surging. There are several notices of feasibility studies and environmental impact assessments, signalling growing investor interest, while the Zambia Development Agency, the government’s investment arm, continues to host a steady stream of business delegations.
Beijing has put its best foot forward. PowerChina is developing the Chisamba plant; China Datang Corporation is partnering with Zesco on three solar plants totaling 220 MW, while China Jigsco Energy Corporation is investing $90 million in a 100 MW facility in the southern border town of Chirundu.
A Zambian government delegation is currently in China engaging with several energy companies in a bid to attract new investment into the sector.
Soleos Energy, a leading player in the global solar market, promises to contribute 1 000 MW by 2030, with ambitions to expand to 5 000 MW over time.
Its chief executive Dhaval Jiyani, was recently in Lusaka and told the energy minister that operations could start within three months of approval, leveraging the company’s regional experience in neighbouring Democratic Republic of Congo.
Local companies such as Mphepo Power, Kanona Power and Western Power are pursuing wind energy and hydropower.
A new law on nuclear energy is being drafted, the government announced last week.
Banks enter the race
For years, energy experts have lamented the low returns on investment in Zambia’s energy sector, pointing to low tariffs as a key deterrent.
As a result, financiers largely avoided the industry. However, the tide now seems to be turning.
Stanbic Bank Zambia, an arm of South Africa’s Standard Bank Group, provided a $71.5 million loan to the Chisamba solar plant, while state pension fund Napsa has contributed $200 million towards Maamba Energy’s $400 million coal plant, a joint venture between Singapore’s Nava Bharat and Zambia’s parastatal ZCCM Investments Holdings.
Hichilema, a former bank chairman, has repeatedly encouraged banks to increase lending to energy.
It appears to be paying off, with several banks joining the Maamba project and others in the pipeline.