By Cecilia Chiluba
Government says Zambia is making progress in the energy sector by increasing its installed electricity generation capacity through solar power.
Information and Media Permanent Secretary Thabo Kawana said while hydroelectric power remains dominant, the country is diversifying its energy mix with a focus on renewable energy sources like solar and wind.
Mr. Kawana stated in a Facebook post monitored by Money News that energy remains crucial for national development as it powers economic growth, improves living standards, and fosters human development.
“Access to reliable energy is particularly important for reducing poverty and increasing industry competitiveness,” Mr. Kawana noted.
He highlighted the 2021-2024 Government’s implementation Status of key Policy Reforms in the Energy Sector which include the restructure of ZESCO Limited to improve its operations, and expansion of Maamba Collieries by 300 megawatts with an investment of US$400 million, with a further 300 megawatts planned immediately after the initial project.
Mr. Kawana explained that Government separated the transmission and dispatch operations from ZESCO to setup an independent System and Market Operator.
“This has already resulted in three new, well capitalized electricity trading companies being established by private sector, and actively buying and selling power in the region.”
“A total of 19,250 connections are integrated into the National Grid under electricity generation, transmission, and distribution,” he said.
He added that ZESCO has reduced the backlog of electricity connections from more than 67,000 in 2021 to about 4,800 in 2024.
“ZESCO and private investors are investing in several solar power stations at several strategic locations. These include Chisamba 100 megawatts, Choma 50 megawatts, Kasama 100 megawatts, and Kariba 100 megawatts,” he added.
“The Government through ZESCO signed a USD$3.5 billion deal with China CiEG for renewable energy production in Zambia.”
Mr. Kawana reiterated that the expansion of Mamba Collieries will enable integration of higher volumes of Solar and Wind into the grid.
He further said since 2021, Government has granted Power Purchase Agreements (PPAs), Implementation Agreements and other state approvals to several private sector hydro projects, wind and solar projects that were stuck in the pipeline.
Mr. Kawana indicated that Government has also implemented the Zero rating of Value Added Tax (VAT) on the importation of selected equipment and machinery used in the development and establishment of electricity generation, transmission and distribution projects for the period 1st July 2024 to 31st December
2033.
He also observed that Copperbelt Energy Corporation PLC (CEC) has raised US$280 million green Bond to finance 200 megawatts of solar power starting with a 30 megawatts PV solar plant on the Copperbelt that has already been commissioned.