Interpretation of zambia s air energy storage policy regulations

Why did Zambia implement new electricity (open access) regulations in 2024?

Zambia implemented new Electricity (Open Access) Regulations in 2024 to promote a more competitive and sustainable energy market. These regulations aim to address challenges arising from the country’s heavy reliance on hydropower and a surge in private investment in the energy sector.

How is energy regulated in Zambia?

Recognising energy as an essential commodity, the Zambian energy sector is strictly regulated. The Energy Regulation Board (ERB), established under the Energy Act, is responsible for determining tariffs, approving power purchase agreements (PPAs), and overseeing energy transactions.

What is the energy sector in Zambia?

The energy sector in Zambia operates primarily under Energy Regulation Act No. 12 of 2019 (Energy Act), which broadly defines “energy” to include various sources such as electrical, mechanical, thermal, or chemical power derived from sources like electricity, petroleum, coal, renewable sources, and others as determined by the Minister.

What are the three primary sub-sectors of the Zambian energy sector?

The three primary sub-sectors of the Zambian energy sector are the following: electricity; renewable energy; and petroleum. Recognising energy as an essential commodity, the Zambian energy sector is strictly regulated.

How does Zambia's Electricity Market work?

Notably, the electricity market has traditionally operated on a single-buyer model, with Zambia Electricity Supply Corporation Limited (ZESCO), a state parastatal, acting as the sole purchaser and major distributor of electricity. Independent power producers also contribute to electricity generation, selling their output to ZESCO through PPAs.

What is Zambia's energy mix?

Zambia’s current energy mix has been predominantly reliant on hydropower supplemented by thermal power from coal. Hydropower accounts for the majority of electricity generation, followed by fossil fuels and a small but rapidly growing contribution from photovoltaic or solar energy.