This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 11/8/2017
Overview
There are five electricity companies in Zambia:  the state-owned Zambia Electricity Supply Corporation (ZESCO) Limited; Copperbelt Energy Corporation (CEC); North-Western Energy Corporation (NWEC); Lusemfwa Hydro Power Company (LHPC); and Maamba Collieries Limited.  Currently, ZESCO is the largest electricity company in the country, running and operating power stations, transmission lines, and distribution networks.
Zambia’s installed capcity stands at 2,347 Megawatts (MW).  The main hydro power stations include Kariba North Bank Power Station, Kafue Gorge Power Station, Victoria Falls Power Station, and Itezhi Tezhi Hydro Power Station.  One coal-fired plant, Maamba Collieries, was commissioned towards the end of 2016 and is currently generating 300 MW of power purchased by ZESCO for distribution on the national grid.
Demand for power in the various sectors of the economy has grown rapidly over the years and continues to grow.  The Zambia Development Agency (ZDA) states that the demand for electricity in Zambia has been growing at an average 3% or between 150MW-200MW each year.  Zambia is a member of the Southern Africa Power Pool and is therefore able to sell or buy excess electricity generated in the region.
Zambia is implementing the Second Scaling Solar project by the Industrial Development Corporation (IDC), and in close coordination with the Ministry of Energy.  This second mandate for Scaling Solar was signed in February 2017 with the World Bank under the IFC program that is helping developing countries procure low cost, privately financed, solar power.  The First Scaling Solar project was auctioned in May 2016 for two solar PV plants of 50 MW each and were awarded to international energy developers. 
Sub-Sector Best Prospects
Solar resources:  Zambia has abundant renewable energy resources spread out through out the country.  Zambia enjoys long and intense hours of annual sunlight to support solar energy generations, and averages about 2,000-3,000 hours of sunshine per year.  The solar power or photovoltaic (PV) market remains dominated by government, NGO and donor funded projects.  U.S. products are well received among competition from China, South Africa, and India.  The government intends to generate 600 MW through solar by 2020.
Power Africa Support:  Power Africa supports a number of energy initiatives in Zambia, including technical assistance to the government institutions to develop a renewable energy feed-in tariff (REFIT) and a standardized power purchase agreement (PPA).  As with many developing countries, the establishment of REFIT has spurred the on-boarding of new, small, private-sector driven renewable energy power generation partners.  Power Africa also supported the introduction of IFC’s Scaling Solar program in Zambia, which has been key in financing critical costs necessary for a transparent, competitive bidding process to attract project developers, build institutional capacity, and catalyze market growth.  In accelerating off-grid energy growth, the Power Africa Off-Grid Energy Challenge has provided small grants for innovative, entrepreneurial developers seeking to expand rural access.  Learn more about how Power Africa is partnering to address key challenges in Zambia’s electricity sector and supporting private sector investment in energy at the USAID.
Opportunities
There are opportunities in electricity generation and transmission, refineries, storage facilities and pipelines for petroleum and gas, renewable energy facilities and transport facilities for coal distribution and exports. pportunities for solar energy include residential, schools, hospitals, health centers, commercial, utility, off-grid and agricultural sector.
Key government and regulatory agencies for Solar projects:
Industrial Development Corporation
Lusaka South Multi-Facility Economic Zone
F10723 Chifwema Road, Off Leopards Hill Road
P. O. Box 3732, New Kasama
Lusaka, Zambia
Tel: +260-211 843568/ +260-211 234648
Ministry of Energy
Mulungushi House
P.O. Box 50069
Lusaka, Zambia
Tel: +260-211 252666 / +260-211 252698
Energy Regulation Board
Plot No 9330,
Off Alick Nkhata Road
P.O Box 37631,
Lusaka, Zambia
Tel: 260-211 258844/49
Fax: 260-211 258852
Web Resources
Industrial Development Corportaion
Zesco
Energy Regulation Board

 

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Zambia Energy Trade Development and Promotion