Tackling Zambia’s power crisis

Zambia is currently grappling with a critical energy deficit of about 700 megawatts, leading to a 12-hour load shedding program that could potentially increase to 15 or 16 hours as the country faces its worst energy crisis. With 85 percent of its power supply dependent on hydroelectricity, Zambia has been hit hard by the effects of the ongoing drought, impacting its ability to generate electricity. The country has been aware of this looming challenge due to its reliance on hydro power and the need for infrastructure development for alternative energy sources. Recognizing the urgency of the situation, the government has implemented regulatory measures to address the energy crisis, including two recent increases in electricity tariffs and a multi-year tariff adjustment program aimed at attracting investment into the energy sector. However, with a projected fourfold increase in energy demand by 2030, Zambia's current installed capacity of 3,500 megawatts falls significantly short of the required 8,000 megawatts. Addressing this shortfall necessitates substantial investment and diversification of energy sources to reduce reliance on hydro power. To tackle the crisis, Zambia is working with various international partners to develop new energy projects, including agreements with Indian and Dubai-based consortiums for solar power generation, the doubling of production at a local co-fired plant, and collaborations with the private sector for initiatives like a 400-megawatt solar and wind energy project in the mining sector. The country is also creating a conducive regulatory framework to attract investment and support the development of alternative energy sources like solar, wind, and coal. While progress is being made in addressing Zambia's energy crisis, the country recognizes that achieving energy sufficiency will take time and concerted efforts from both domestic and international stakeholders.