104
Mining & Energy
locked status, another pressing need is to ensure
the security behind the supply of petroleum prod-
ucts.
In 2009, the EU and the African, Caribbean, and
Pacific (ACP) countries launched a new global en-
ergy facility worth more than 200 million USD to
contribute to poverty alleviation and the protection
of the environment under the Millennium Develop-
ment Goals.
El
ectricity
g
eneration and suppl
y
The Zambian power sector is governed by three
pieces of legislation:
• The Energy Regulation Act (1995): established
the Energy Regulation Board (ERB).
• The Electricity Act (1995): abolished the statu-
tory monopoly of ZESCO in the power sector
and provided room for new entrants.
• The Rural Electrification Act (2003): expanded
electrification of rural areas.
The ERB is responsible for the licensing, moni-
toring, and supervision of operators in the energy
sector, as well as the approval of electricity tariffs.
In consultation with other statutory bodies like the
Zambia Competition Commission, the board moni-
tors and promotes competition within the energy
sector. In conjunction with the Environmental Coun-
cil of Zambia, it simultaneously works to minimize
the environmental impact of the production and
supply of energy and the storage and use of fuels.
OVERVIEW
Zambia has an abundance of energy resources—
the most important being hydroelectric power. With
an estimated hydropower capacity of 6,000 mega-
watts, the country has a lot of room for growth in
the use of this resource. It is estimated that it only
uses 30 percent of its hydropower capacity. Hydro-
electric power plants account for 92 percent of the
total installed capacity and 99 percent of the total
electricity generated in the country. The two main
hydropower stations are the Kafue Gorge Power
Station (producing 900 megawatts) and the Kariba
North Bank Power Station (producing 720 mega-
watts).
Hydropower stations supply power to the national
grid, while diesel power generation plants are also
used to supply power to isolated, remote areas that
are not connected to the national grid. The national
grid is interconnected to that of Zimbabwe and the
Democratic Republic of the Congo (DRC), which
are the two most important export power grids.
Improving the supply of and access to electricity
remains a key strategic focus of the government so
that it may support private sector growth through
the maintenance of stable energy.
The government is seeking alternative sources of
energy, such as solar power and bio-fuels; however
it is still focusing on expanding the capacity of ex-
isting hydroelectric power stations. Intrinsic to this
process is the raising of electricity tariffs to make
investment into new capacity expansion projects
more profitable and to attract more private sector
interest into the sector. In light of Zambia’s land-
Credit: M
opani Copper M
ines P
l
c
Nkana Synclinorium Shaft complex
