105
Mining & Energy
Zambia El
ectricity
Suppl
y
Corporation
The power distribution network falls under the Zam-
bia Electricity Supply Corporation (ZESCO), the na-
tional electricity utility, which was successfully com-
mercialized in 2005. The corporation operates and
maintains a high voltage transmission system, is
responsible for all electrical power imports and ex-
ports in the country, and provides retail services to all
but the largest mining customers in the Copperbelt
region of Zambia.
ZESCO has made great strides to reduce the backlog
of customers waiting for new electricity connections.
Generally, a standard connection is completed within
30 days and a non-standard connection within 90
days. For non-standard connections, the backlog has
been reduced from 7,000 in January 2008 to 3,600
in January 2010.
In an effort to sustain its existing capacity as well as
to attract additional investment to the sector, electric-
ity tariffs have been raised marginally. Additionally,
ZESCO has embarked on a countrywide program to
install prepaid electricity meters, most of which are
now locally manufactured. The public utility is also
in the process of improving its cost structure for the
benefit of its customers.
The Copperbel
t Energ
y
Corporation
This is the sole distributor of electricity to the major
mines in Zambia. Currently, the Copperbelt Energy
Corporation (CEC) buys electricity from ZESCO un-
der a bulk supply agreement that will expire in 2020,
at which point the opportunity to supply energy to the
largest industry in Zambia will open for renegotiation.
INVESTMENT OPPORTUNITIES
Investment opportunities are available in electricity
generation and transmission projects. The explora-
tion for and production of petroleum resources, coal
exploration mining, and the development of renew-
able energy sources also represent viable investment
opportunities.
The power utility, ZESCO, has undertaken measure
to upgrade and rehabilitate the generation infrastruc-
ture of the Kafue Gorge and Kariba North Bank hy-
dropower stations. The rehabilitation of Kafue Gorge
has given it 90 more megawatts, and the upgrading
of Kariba North Bank, an additional 90 megawatts.
Another 30 megawatts were added in 2010 as well.
Due to the Kariba North Bank Extension Project,
360 megawatts (MW) were recently added to the
Kariba North Bank.
Feasibility studies have been completed for the Ka-
fue Gorge Lower and Itezhi-Tezhi projects. The 120
megawatt Itezhi-Tezhi hydropower plant is being
developed under a joint venture investment scheme
with Tata Africa Holdings. The 600 megawatt Kafue
Gorge Lower hydropower plant is expected to cost
approximately 1.5 billion USD and will be commis-
sioned in 2017.
While these large projects will almost double the
country’s ability to generate electricity over the
medium-term, there is an urgent need to improve
the supply of electricity in the most remote areas
of Zambia in the short-term. Given the high cost of
building lengthy distribution networks, the govern-
ment has begun to develop a number of mini hy-
dropower projects aimed at supplying smaller areas
with electricity. Several projects have already been
identified for which development is to take place
within the Public-Private Partnership (PPP) frame-
work.
The Copperbelt Energy Company (CEC) has spent
an estimated 120 million USD on the development
of the 33 megawatt Kabompo Gorge hydroelectric
project on the Kabompo River in the NorthWestern
Province. The 218 megawatt Kalungwishi hydro-
electric project, which is currently under construc-
tion, will cost approximately 641 million USD.
Zambia is also pursuing the development of trans-
mission interconnectors with its neighboring coun-
tries. One such project is the Zambia-Tanzania-
Kenya power interconnector. Other investment
opportunities in electricity transmission include the
following: the Zambia-Malawi interconnector, the
Zambia-DRC interconnector, and the Solwezi-Kol-
wezi interconnector.
As less than 20 percent of all Zambians and only 3.1
percent of the rural population have access to elec-
tricity, public resources have focused on stepping up
rural electrification programs, which have received
an allocation of K234.7 billion in 2010.
ZESCO new
el
ectricity
connections back
l
og
2018
7,000
2010
3,600
