Full meaning
African Union
Community of Sahel–Saharan States
Common Market for Eastern and Southern Africa
Economic Community of West African States
Foreign direct investment
Gross domestic product
Inclining block tariff(s)
International Monetary Fund
Independent power producer
Kilowatt
Kilowatt hour
Liquid petroleum gas
Megawatt
Pay as you go
Power purchase agreement
Private public partnership
Standard and Poors Global Ratings
Sub-Saharan Africa
Transmission and distribution
Time of use
West African Economic and Monetary Union
United Nations Industrial Development Organization
Value added tax
World Bank Regulatory Indicators for Sustainable Energy
A distributed energy system that generates electricity at a centralised location from one or a combination of energy sources and distributes to end-customers typically through a low-voltage grid. mini-grids can be isolated or interconnected with the main grid.
Throughout the Country Briefs, a small IPP is defined as any grid-tied system below 10 MW that operates on a power purchase agreement (PPA), with the exclusive goal of feeding energy into the grid (no self-consumption).
SHS are off-grid solar products with peak capacities generally between 11 Wp and 350 Wp, powering lights and other small DC appliances such as fans and televisions. They include battery storage for electricity supply outside periods of generation. Pico solar systems are typically below 11 Wp, offering basic energy services such as lighting and cellphone charging.
Captive power systems are defined as being ‘behind the meter’ systems whose primary purpose is self consumption. These systems can be off-grid or grid-connected.
For the purposes of the Country Briefs, this includes clean cookstoves, improved cookstoves, biogas and liquefied petroleum gas (LPG) cooking systems.
Market Segments
Zambia
Zambia launched its renewable energy feed-in tariff (REFIT) strategy in October 2017, with the aim of procuring 200 MW grid-connected capacity, each project being up to 20 MW. The implementing programme is the Zambia Global Energy Transfer Feed in Tariff (GET FiT) programme. Through the GET FiT Zambia programme, renewable energy projects up to 20 MW are being procured. To date however, projects smaller than 10 MW have not been selected. Recently, six solar PV projects of 20 MW each have been awarded. GET FiT Zambia has also initiated a small-hydro tender for a total of 100 MW. Bidders were prequalified in May 2019.
The Copperbelt Energy Corporation (CEC)'s Riverside 1 MW solar plant in Kitwe is one example of a small IPP, yet the electricity is fed into CEC's own grid and not on a PPA basis to the government offtaker. CEC operates transmission and distribution grids in the Copperbelt region.
The Copperbelt Energy Corporation (CEC)'s Riverside 1 MW solar plant in Kitwe is one example of a small IPP, yet the electricity is fed into CEC's own grid and not on a PPA basis to the government offtaker. CEC operates transmission and distribution grids in the Copperbelt region.
Regulations
The Electricity Act (No 11 of 2019) regulates the generation, transmission, distribution and other supply aspects of electricity in Zambia. It also outlines a multi-year tariff framework for the Energy Regulation Board (ERB) and states that any licencee must get approval from the ERB for a proposed retail tariff. Annual tariff adjustments are allowed, on approval from ERB. All generators and distributors must comply with the grid code and other relevant technical standards. The 2019 act repeals and replaces the 1995 Act and its amendments.
The Energy Regulation Act (No 12 of 2019) specifies the licencing procedures of companies operating in the energy sector. Licencing is done on a single licencing system as per the Business Regulatory Act (2014). This means that there is only one type of licence in the energy sector. The 2019 Act makes no exemptions. All companies are required to apply for an operating licence, as well as a permit. A permit must already be obtained in order to apply for a licence. A licencee is required to meet the minimum ERB technical standards and various technical and financial reporting requirements. The 2019 Act repeals and replaces the Energy Regulation Act of 1995.
The Distribution Grid Code of 2016 lays out the rules and standards applicable to the development, maintenance and operation of distribution grids in Zambia. The code consists of various chapters, including network, system operation, metering, information exchange, tariffs, grid integration of renewable energy plants and governance. The code distinguishes between distribution & transmission grid service providers, generators, embedded generators/net metering, end-use customers, retailers, resellers, system & regional operators and metering service providers. Chapters apply to respective groups in different ways.
The proliferation of mini-grids in Zambia has been hampered by typically low density population clusters in rural areas and a relatively under-developed mobile money infrastructure. Despite this a market does exist and companies like Standard Microgrid have had some success with innovative business models which operate on a service based rather than kWh consumption based charge.
The government policy is relatively supportive of mini-grids, with developers allowed to apply to charge cost reflective tariffs through a streamlined process, and licensing procedures specifically eased for mini-grids. The Energy Regulation Board maintains an off-grid technology focused portal (at www.offgrid.gov.zm) with access to information about licensing and permitting processes, financing options and available geospatial data. The Rural Electrification Authority has completed a number of projects including a 640 kW mini hydro power system on the Kasanjiku river and a 60 kW solar mini-grid in Mpanta. Two additional sites were under construction in late 2020; a 200 kW site in Chunga and a 300 kW site in Lunga.
There are numerous private sector developers in Zambia including Entiba Energy who have built a 100 kW solar mini-grid in Mwanye village. Other active organisations include Copperbelt Energy Corporation, Green Knowledge Institute, Muhanya Solar, PowerCorner, PowerGen Renewable Energy, Sigora Energy, Standard Microgrid and Zengamina Power Company (Hydro Electric Power Limited).
The government policy is relatively supportive of mini-grids, with developers allowed to apply to charge cost reflective tariffs through a streamlined process, and licensing procedures specifically eased for mini-grids. The Energy Regulation Board maintains an off-grid technology focused portal (at www.offgrid.gov.zm) with access to information about licensing and permitting processes, financing options and available geospatial data. The Rural Electrification Authority has completed a number of projects including a 640 kW mini hydro power system on the Kasanjiku river and a 60 kW solar mini-grid in Mpanta. Two additional sites were under construction in late 2020; a 200 kW site in Chunga and a 300 kW site in Lunga.
There are numerous private sector developers in Zambia including Entiba Energy who have built a 100 kW solar mini-grid in Mwanye village. Other active organisations include Copperbelt Energy Corporation, Green Knowledge Institute, Muhanya Solar, PowerCorner, PowerGen Renewable Energy, Sigora Energy, Standard Microgrid and Zengamina Power Company (Hydro Electric Power Limited).
Regulations
The Electricity Act (No 11 of 2019) regulates the generation, transmission, distribution and other supply aspects of electricity in Zambia. It also outlines a multi-year tariff framework for the Energy Regulation Board (ERB) and states that any licencee must get approval from the ERB for a proposed retail tariff. Annual tariff adjustments are allowed, on approval from ERB. All generators and distributors must comply with the grid code and other relevant technical standards. The 2019 act repeals and replaces the 1995 Act and its amendments.
The Energy Regulation Act (No 12 of 2019) specifies the licencing procedures of companies operating in the energy sector. Licencing is done on a single licencing system as per the Business Regulatory Act (2014). This means that there is only one type of licence in the energy sector. The 2019 Act makes no exemptions. All companies are required to apply for an operating licence, as well as a permit. A permit must already be obtained to apply for a licence. A licencee is required to meet the minimum ERB technical standards and various technical and financial reporting requirements. The 2019 Act repeals and replaces the Energy Regulation Act of 1995.
The Draft Regulatory Framework for mini-grids was released for public comments in September 2019. The framework consists of the draft mini-grid licencing regulations, draft grid encroachment regulations, mini-grid tariff rules and technical requirements. The draft licencing regulations specify the information to be submitted when applying for licence and procedures for amendment, suspension and withdrawal of licences. The draft grid encroachment regulations specify the options available to the mini-grid operator in the case of the main grid encroachment.
The Rural Electrification Act (No 20 of 2003) stipulates that the Rural Electrification Agency can, via the Rural Electrification Fund, offer capital subsidies to developers and operators of rural electrification projects. In doing so, REA offers capital subsidies of up to 100% to publicly-led projects and up to 50% to privately-led projects. REA estimates that this would require $50 million per year, but this funding target has not been reached at the time of writing (end 2020).
The Distribution Grid Code of 2016 lays out the rules and standards applicable to the development, maintenance and operation of distribution grids in Zambia. The code consists of various chapters, including network, system operation, metering, information exchange, tariffs, grid integration of renewable energy plants and governance. The code distinguishes between distribution & transmission grid service providers, generators, embedded generators/net metering, end-use customers, retailers, resellers, system & regional operators and metering service providers. Chapters apply to respective groups in different ways.
Zambia has a vibrant market for standalone solar systems with at least eight prominent companies offering a range of products and services through various business models. These include Captain Electrical, Fenix, Greenlight Planet, Kakula Solar, Solar Village, Sunray, SunnyMoney and Vitalite Group.
Demand and uptake is growing steadily. In 2019, 188,718 solar home systems and pico-solar products were sold by companies affiliated with GOGLA and Lighting Global, representing a significant increase from 125,978 in 2018. PAYGO-based sales decreased from 81% to 67% of total sales between 2019 and 2018, with the difference representing cash sales.
Regulatory requirements are generally favourable to standalone solar companies. Licensing for the retail of solar home or pico-solar systems is relatively straight-forward and covers manufacture, supply, installation, and maintenance. Companies involved in imports need a specific licence issued by the regulator. This is required for all shipments of solar technologies into the country and helps the country ensure the quality of imports.
Demand and uptake is growing steadily. In 2019, 188,718 solar home systems and pico-solar products were sold by companies affiliated with GOGLA and Lighting Global, representing a significant increase from 125,978 in 2018. PAYGO-based sales decreased from 81% to 67% of total sales between 2019 and 2018, with the difference representing cash sales.
Regulatory requirements are generally favourable to standalone solar companies. Licensing for the retail of solar home or pico-solar systems is relatively straight-forward and covers manufacture, supply, installation, and maintenance. Companies involved in imports need a specific licence issued by the regulator. This is required for all shipments of solar technologies into the country and helps the country ensure the quality of imports.
Regulations
The Electricity Act (No 11 of 2019) regulates the generation, transmission, distribution and other supply aspects of electricity in Zambia. It also outlines a multi-year tariff framework for the Energy Regulation Board (ERB) and states that any licensee must get approval from the ERB for a proposed retail tariff. Annual tariff adjustments are allowed, on approval from ERB. All generators and distributors must comply with the grid code and other relevant technical standards. The 2019 Act repeals and replaces the 1995 Act and its amendments.
The Energy Regulation Act (No 12 of 2019) specifies the licencing procedures of companies operating in the energy sector. Licencing is done on a single licencing system as per the Business Regulatory Act (2014). This means that there is only one type of licence in the energy sector. The 2019 Act makes no exemptions. All companies are required to apply for an operating licence, as well as a permit. A permit must already be obtained in order to apply for a licence. A licencee is required to meet the minimum Energy Regulation Board technical standards and various technical and financial reporting requirements. The 2019 Act repeals and replaces the Energy Regulation Act of 1995.
The Rural Electrification Act (No 20 of 2003) stipulates that the Rural Electrification Agency can, via the Rural Electrification Fund, offer capital subsidies to developers and operators of rural electrification projects. In doing so, REA offers capital subsidies of up to 100% to publicly-led projects and up to 50% to privately-led projects.
Zambia’s captive power landscape is limited and relatively polarised in terms of scale. On one end, small scale systems, usually below 500 kW, power hyper local facilities like farms, missions or game lodges. Examples include a 120 kW solar PV facility at the Chitokoloki Mission Station and a 86 kW solar installation at the AKTC demonstration farm and training centre. Smaller, purpose-built solar systems are also in use at safari lodge sites, including Sausage Tree Camp’s 9 kW facility installed by Specialised Solar Systems and a 22 kW solar PV system for Mukambi Lodge installed by Victron Energy. Greenlink, GridX Africa, Muhanya Solar and Vero Power also provide a range of captive power solutions, among others.
On the larger end of the scale, plants of 5 MW or more are used mostly by sugar companies in co-generation facilities to produce heat and power from bagasse or other agricultural waste. Shangombo Sugar’s solar-diesel hybrid project (30 MW) is the first part of a 100 MW plant developed by Finnish firm Nacart at the sugar plantation. In addition, Consolidated Farming Limited (CFL) is expanding its bagasse power plant from 6 MW to 24 MW.
On the larger end of the scale, plants of 5 MW or more are used mostly by sugar companies in co-generation facilities to produce heat and power from bagasse or other agricultural waste. Shangombo Sugar’s solar-diesel hybrid project (30 MW) is the first part of a 100 MW plant developed by Finnish firm Nacart at the sugar plantation. In addition, Consolidated Farming Limited (CFL) is expanding its bagasse power plant from 6 MW to 24 MW.
Regulations
The Electricity Act (No 11 of 2019) regulates the generation, transmission, distribution and other supply aspects of electricity in Zambia. It also outlines a multi-year tariff framework for the Energy Regulation Board (ERB) and states that any licencee must get approval from the ERB for a proposed retail tariff. Annual tariff adjustments are allowed, on approval from ERB. All generators and distributors must comply with the grid code and other relevant technical standards. The 2019 act repeals and replaces the 1995 Act and its amendments.
The Energy Regulation Act (No 12 of 2019) specifies the licencing procedures of companies operating in the energy sector. Licencing is done on a single licencing system as per the Business Regulatory Act (2014). This means that there is only one type of licence in the energy sector. The 2019 Act makes no exemptions. All companies are required to apply for an operating licence, as well as a permit. A permit must already be obtained in order to apply for a licence. A licencee is required to meet the minimum Energy Regulation Board technical standards and various technical and financial reporting requirements. The 2019 Act repeals and replaces the Energy Regulation Act of 1995.
The Distribution Grid Code of 2016 lays out the rules and standards applicable to the development, maintenance and operation of distribution grids in Zambia. The code consists of various chapters, including network, system operation, metering, information exchange, tariffs, grid integration of renewable energy plants and governance. The code distinguishes between distribution & transmission grid service providers, generators, embedded generators/net metering, end-use customers, retailers, resellers, system & regional operators and metering service providers. Chapters apply to respective groups in different ways.
The Distribution Grid Code of 2016 lays out the rules and standards applicable to the development, maintenance and operation of distribution grids in Zambia. The code consists of various chapters, including network, system operation, metering, information exchange, tariffs, grid integration of renewable energy plants and governance. The code distinguishes between distribution & transmission grid service providers, generators, embedded generators/net metering, end-use customers, retailers, resellers, system & regional operators and metering service providers. Chapters apply to respective groups in different ways.
Only 17% of the Zambian population has access to clean cooking solutions. Envirofit International sells wood and charcoal efficient cookstoves. Emerging Cooking Solutions sells stoves that burn pellets through its SupaMoto brand. Home Energy, Prime Cookstoves, Rasma Engineering, Vitalite Zambia and WorldStove are also active in this market.
The government has proposed a zero-rate duty on gas stoves, cookers and boilers in 2019 to mitigate the effects of climate change and promote the use of alternative energy sources. In addition, several programmes are supporting the growth of clean cookstoves technologies. For example, SupaMoto has sold 2,000 cookstoves that use pellets made from sustainable forestry waste and COMACO has distributed 80,000 cookstoves that are fuelled by forestry waste. SNV Zambia has trained 229 people from 11 enterprises in producing and selling portable and fixed charcoal and firewood stoves with 8,009 cookstoves produced.
The government has proposed a zero-rate duty on gas stoves, cookers and boilers in 2019 to mitigate the effects of climate change and promote the use of alternative energy sources. In addition, several programmes are supporting the growth of clean cookstoves technologies. For example, SupaMoto has sold 2,000 cookstoves that use pellets made from sustainable forestry waste and COMACO has distributed 80,000 cookstoves that are fuelled by forestry waste. SNV Zambia has trained 229 people from 11 enterprises in producing and selling portable and fixed charcoal and firewood stoves with 8,009 cookstoves produced.