Zambia’s electricity sector was liberalized in 1995 amidst the wide-ranging economic reforms begun by the new government of the Movement for Multiparty Party democracy that took office in 1991. Below is a directory of who’s who in the power sector.
Policy & Regulation
At the apex of the policy and regulatory level sit the Ministry of Energy and the Energy Regulation Board (ERB), introduced as an independent agency in 1995 established by statute to regulate the energy sector, comprising the petroleum and electricity sub-sectors. Later in 2003, the Rural Electrification Authority was established by an Act of Parliament as a special purpose vehicle (SPV) to increase access to electricity in rural Zambia.
The next level seats the operating entities, dominated by the vertically integrated state power utility ZESCO Limited (ZESCO).
Power Generation
ZESCO
At the end of 1969, the government formed an entity tasked with generating, transmitting, and distributing electricity throughout Zambia, with a few exceptions. Early in 1970, the Zambia Electricity Supply Corporation (ZESCO) was made effective by law and by July of that year, it took over three big power generation and supply companies. Two years later, it acquired more entities and by 1985, it supplied electricity to the entire country except the mines in the Copperbelt and the lead and zinc mines in Kabwe. Those continued to be powered by the Copperbelt Power Company (CPC), Mulungushi, and Lunsemfwa power plants. These are the modern-day Copperbelt Energy Corporation PLC and Lunsemfwa Hydro Power Corporation Limited.
Today, ZESCO—which shed its long-form name to become non-acronymous (known only as ZESCO now) in 1994—is the dominant power sector company with a generating capacity of over 2,900MW, owning and operating transmission and distribution assets exceeding 11,000 kilometers. It is a wholly state-owned company. It directly or through its subsidiaries owns and operates the Kariba North Power Bank, Kariba North Power Bank Extension, Itezhi-Tezhi, Kafue Gorge Upper, and Kafue Gorge Lower power stations. It also owns various small hydropower plants including Lunzua, Lusiwasi Lower and Upper, Chishimba Falls, Shiwang’andu, and Musonda Falls.
Maamba Energy Limited (Maamba)
Currently Zambia’s largest independent power producer (IPP) operating coal-fired thermal generation assets of 300MW, with another 300MW in development, Maamba started off as a coal mine. Maamba Coal Mine began production in 1968 and was incorporated by the Zambian government in 1971. It was privatized as Maamba Collieries Limited in 2010. The Zambian government retained 35% through ZCCM-IH. Maamba added energy to its portfolio in 2016.
Ndola Energy Company Limited (Ndola Energy)
Ndola Energy began operating its first of two heavy fuel oil (HFO) power plants in 2013. It is presently the second-largest thermal power generating plant in Zambia, an IPP with the capacity to produce 105MW of electricity.
Lunsemfwa Hyro Power Corporation Limited (Lunsemfwa)
Lunsemfwa boasts the record of Zambia’s first hydropower station—Mulungushi in 1925. Located in Kabwe, the company has two hydropower plants—Mulungushi and Lunsemfwa—capable of generating 56MW. It is Zambia’s oldest independent power producer (IPP), privatized in 2001.
Itezhi-Tezhi Power Corporation (Itezhi-Tezhi)
Established in 2007, Itezhi-Tezhi is a joint venture special purpose vehicle (SPV) owned 50% by ZESCO and considered an IPP. Its sole electricity-generating asset is the 120MW Itezhi Tezhi hydropower plant.
Copperbelt Energy Corporation PLC (CEC)
Established in the early 1950s by mining companies in the Copperbelt, the company came under government ownership as a division of the Zambia Consolidated Copper Mines (Power Division) in the early 1980s and was privatized in 1997. Its strength has historically been transmission and distribution with more than 1,000km of power lines in the Copperbelt, while its diesel thermal power generation of 80MW is reserved for its customers’ emergency power needs. It has recently entered the renewable energy space and developed two solar power plants with, the capacity to produce 94MW combined.
Bangweulu Power Company Limited (Bangweulu)
This IPP entered the Zambian power market in 2016 when it won the bid to develop a high-power solar PV power plant under the World Bank Group’s Scaling Solar program. Subsequently, the 54MW Bangweulu Solar Power Station in the Lusaka South Multi-Facility Economic Zone began operating in March 2019, becoming Zambia’s first utility-scale solar power plant. The ownership consortium includes the Zambian government through the Industrial Development Corporation (IDC).
Ngonye Power Company Limited (Ngonye)
Another IPP entrant from the Scaling Solar program, Ngonye developed, owns, and operates the 34MW Ngonye Solar Power Station together with the IDC. Ngonye is also located in the Lusaka South Multi-Facility Economic Zone and was commissioned in April 2019.
Transmission, Distribution & Supply
ZESCO is the largest power transmission, distribution, and supply company in Zambia by assets, coverage, and customer base. It’s engaged in transmitting and distributing power to its last-mile customers and for larger entities like other companies that rely on its network to serve customers.
CEC primarily transmits and distributes power to mining companies in the Copperbelt and offers power transport services (wheeling) using its transmission and distribution network to other players, including ZESCO.
Northwestern Energy Corporation (NWEC)
NWEC distributes electricity to non-mine sites in the mining-centric Solwezi town in North-Western Province. NWEC started with Lumwana in 2008 and extended its services to FQML’s Kabitaka and Kalumbila townships in 2012. The company was formed in 2007.
Power Trading
In 2019, the law (Electricity Act, 2019) provided for electricity open access to further liberalize the power sector. Before this, ZESCO and CEC had long been trading power, especially in the Democratic Republic of Congo where mining demand falls far short of the available domestic supply.
The market now has several local and foreign private power traders, including ENPower, Petrodex, Kanona, and Africa GreenCo.
At a glance, these are the players in the different segments of Zambia’s electricity value chain.
