UPDATE ON THE ELECTRICITY SITUATION IN THE COUNTRY

UPDATE ON THE ELECTRICITY SITUATION IN THE COUNTRY

Highlights from the press briefing held by the Minister of Energy Hon. Peter Kapala on the electricity situation in the country.

✅ Zambia continues to grapple with the impact of the El Nino drought which has had a significant impact on the energy sector among others.

✅ As a result of the poor hydrology, current available average generation as dictated by water availability in the reservoirs is about 900MW against the average demand of 2,400MW resulting in a power deficit of 750MW as at May 2024.

✅ In response to this, Government has put in place the following measures to avert the situation;

1. SHORT TERM MEASURES

✅ Power imports (firm and none firm power): Currently, power import stands at 188MW. In addition, ZESCO Limited has also clawed back power from export contracts to a total of 160MW.

✅ Restarting of: Currently, Government through the Ministry of Energy, ZESCO and Ndola Energy Company Limited (NECL) is working at restarting the 105 MW Ndola Energy Power Plant by next month.

✅ Development of a 100MW Solar PV power plant in Chisamba: Government through ZESCO is developing the project which is scheduled to be completed in December this year.

✅ Erecting 120 MW of Diesel Generators in Ndola and Mpika:

✅ Government through the Energy Regulation Board has streamlined the licensing processes in order to apply light handed regulations on entities that would want to set up generation plants.

✅ Cabinet this week approved the Open Access and Net Metering Regulations. These regulations will enable industry and households to supply electricity to the national grid and earn an income by selling the power.

✅ Tariffs and Power Purchase Agreements. ZESCO has been directed to speed up and bring on-board all Independent Power Producers with a lucrative tariff during this crisis period.

2. MEDIUM-LONG TERM PROJECTS

(a) Renewable Energy Expansion:

✅ Implementation of a 120 Mega Watt portfolio of solar PV power project under the Global Energy Transfer Feed-in Tariff (GET-FiT) program.

✅ Maamba Collieries Phase II: 300 MW Coal Power Plant is under way. Financial closure is expected be reached by 30th June (3 weeks from now) and construction will begin this year.

✅ Luapula (CX) Hydropower Project: 271MW Luapula hydropower project on the Luapula River will be developed.

3. STRATEGIC PROGRAMMES AND LONG- TERM PROJECTS

✅ The Government completed the development of the first Integrated Resource Plan (IRP) in 2023 which is aimed at providing sustainable solutions to Zambia’s challenges in the electricity sub-sector.

✅ The IRP programme plans additional generation capacity of 6,505 megawatts (MW) by 2026, requiring an estimated investment of USD 5 billion.

✅ Government, through the Ministry of Energy, remains committed to closely monitor the situation and actively seeking additional interventions to address the projected deficit.

✅ Consumers are encouraged to consider transitioning to alternative energy sources such as gas stoves, solar water heaters, and the adoption of efficient energy equipment such as energy-efficient bulbs to reduce on power consumption.