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Energy & Water
It goes without saying that electricity is one of the key
drivers of economic development, and therefore un-
derscores ZESCO’s critical importance to the Zam-
bian energy sector in terms of its strategic position
as a vertically integrated utility company that turns
the wheels of the Zambian economy.
“There is an abundance of opportunities for invest-
ment in the Energy sector in Zambia. The govern-
ment liberalized the Energy sector to encourage
competition and all other players are therefore wel-
come on the scene to ensure that Zambia becomes
self-reliant in the energy sector and we welcome any
investor to partner with ZESCO.”
Ernest Mupwaya
Managing Director
Due to stable economic growth over the last decade,
with recorded GDP growth rate at 6.3% in 2010,
demand for electricity in the country has increased
tremendously. ZESCO is charged with the important
responsibility of meeting this ever-increasing power
demand.
ZESCO is also a member of the Southern African
Power Pool (SAPP), which is an integrated associa-
tion of a number of utility companies in the Southern
African Development Community (SADC) region.
The entire region is forecasting a large power deficit
by 2015 and ZESCO is one of the two regional utility
companies that have taken up the challenge to heav-
ily invest in power generation in order to mitigate this
regional deficit. Therefore, ZESCO plays a vital role
not only to Zambia, but also to the whole region.
In recognizing the need to meet the growing domes-
tic and regional power demand, ZESCO’s three main
power plants, namely Kafue Gorge, Kariba North
Bank and Victoria Falls Power stations have benefit-
ted from ZESCO’s Power Rehabilitation Programme
(PRP) which has seen Kariba North Bank and Ka-
fue Gorge power stations increase their generating
capacity. This programme refurbished the plants to
improve reliability, efficiency and to increase their
generation capacity. Kafue Gorge station’s capacity
was increased from 900 Mega Watts to 990 Mega
Watts. The Kariba North Bank station increased its
generation capacity from 600 Mega Watts to 720
Mega Watts. This station is also in the process of
adding two new generators that will add an addi-
tional 360 Mega Watts by November 2012 under the
Kariba North Bank Extension project. This excess
power has been allocated to assist the power deficit
of the Southern African Power Pool (SAPP) region.
The Victoria Falls Power Station, with a capacity of
108 Mega Watts (MW) was rehabilitated in order to
generate the same amount of power with less water,
therefore leaving more water to support the thriving
and growing tourism industry in Livingstone.
ZESCO is also upgrading several of their smaller
hydro power stations, such as the Lunzua Power
Station and the Lusiwasi Power Station. Lunzua is
located on the border with Tanzania and will have
its capacity increased from 0.75 MW to 15 MW. Al-
though small, this increased generation capacity will
help create a greater degree of stabilization in the
Northern Province.
“ZESCO will expand its generation capacity in order
to address the anticipated short to long term demand
growth for power resulting from the growing Zambian
economy. ZESCO will also reinforce its transmission
systems and develop new interconnectors for ex-
port of power to neighbouring countries by the year
2015.
Ernest Mupwaya
Managing Director
As the bulk consumption of energy has increased
tremendously in the last decade, ZESCO has em-
barked upon strategic partnerships with foreign com-
panies such as Sinohydro of China and the China
Africa Development (CAD) Fund to develop the new
Kafue Gorge Lower power station. They have also
partnered with TATA Africa of India in order to de-
velop a hydro power station at the Itezhi-Itezhi Dam.
Good Corporate governance is paramount in today’s
energy sector and modern business environment.
Therefore, ZESCO strictly adheres to the Electric-
ity Act that is a statutory instrument devised by the
government. It also keeps in sync with government
policies on various issues, such as the Govern-
ment’s vision to provide affordable electricity to 51%
of all Zambians by 2030, and protect the environ-
ment while doing so. ZESCO therefore represents a
fundamental vehicle by which the government aims
to fulfil its agenda of delivering electrification for all.
Though a parastatal institution, ZESCO is a fully
commercialized entity and is expected to operate as
such. Like any other business, ZESCO remits divi-
dends to its sole shareholders, the Government of
the Republic of Zambia. To take care of its interest,
the government has appointed the Permanent Sec-
retary’s of the Ministry of Lands, Energy and Water
Development and the Ministry of Finance & National
Planning to the ZESCO Board of Directors respec-
tively.