106
Mining & Energy
Rural
El
ectrification
Access to electricity in many rural areas is quite lim-
ited, which poses both a challenge and an opportu-
nity for the sector. In remote rural areas, electricity
is fundamental for economic progress. Sustainable
development in agribusiness, small-scale mining,
and tourism relies on rural electrification. Challenges
arise due to the long distances that are present be-
tween existing power stations, the small population,
levels of capital, and skill sets needed for the devel-
opment of new stations. Therefore, the government
has established the Rural Electrification Authority
(REA). The REA is an institution that mobilizes funds
to promote rural electrification. They have developed
and implemented a Rural Electrification Master Plan
(REMP) that has the goal of achieving at least 51
percent electrical coverage of rural areas by 2030.
In order to broaden participation in the development
of rural electrification, the REA promotes innovative
approaches such as the involvement of private sec-
tor players, cooperatives, and local communities in
generation and distribution initiatives. The success-
ful implementation of the REMP depends on active
participation of the private sector and independent
power producers, contractors, and consultants.
OIL & GAS
Zambia’s downstream oil industry plays an important
role in the economy. Petroleum, all of which is im-
ported, accounts for 9 percent of Zambia’s energy
demand. The 1720 kilometer-long Tazama pipeline,
which is jointly owned by Zambia and Tanzania,
allows for the importation of crude oil into Zambia
from Tanzania. The procurement of petroleum, con-
ducted through an international competitive bidding
process, is then transported to the Indeni Petroleum
Refinery. This refinery, with a capacity of 800,000
tonnes per year, refines the crude oil that is distrib-
uted into the market by international and local com-
panies operating in Zambia.
Petroleum products are a vital input for the mining
and transport sectors. In terms of overall petroleum
consumption, 53 percent is dedicated to the trans-
port sector, while 27 percent is consumed by the
mining sector.
Following the discovery of oil and gas in the North-
Western Province, there has been an increasing in-
terest from both foreign and domestic firms to take
advantage of exploration activities. A special com-
mittee was appointed to handle the issuing of 23
demarcated blocks in the NorthWestern, Western,
Southern, Eastern, Northern, and Luapula prov-
inces. In November 2009, the government held a
successful first round of bidding for international li-
censes for oil and gas exploration. During this round
of bidding, permits were issued to seven companies
for the exploration of 11 blocks. Further rounds are
expected as interest grows and developments in
oil and gas exploration unfold within Zambia’s own
borders.
The Energy Regulation Board (ERB), in collabora-
tion with the Competition and Consumer Protection
Commission (CCPC), investigate and monitor the
levels and structures of competition within the en-
ergy sector. In conjunction with the Environmental
Council of Zambia, the ERB also formulates mea-
sures to minimize the environmental impact of the
production and supply of energy, storage, and use
of fuels. It enforces such measures by applying the
appropriate conditions to the licenses held by the oil
marketing companies.
RENEWABLE ENERGY
As defined by Zambia’s Renewable Energy Strat-
egy, renewable energy sources include: solar, mini-/
micro-hydro, biomass, geothermal, and wind. There
is an increasing interest in the many applications of
renewable energy in Zambia; however, the volumes
of renewable generation and capacity are not yet at
a significant national level.
Sol
ar
There is great potential with solar energy in Zambia
as solar radiation levels are considered to be quite
high. The National Policy reports the potential en-
ergy output per unit are to be at approx. 5.5 kWh/
m2/day.
Solar energy systems have been installed in at least
250 schools and chief’s palaces. Under the Energy
Service Company pilot project, 400 households have
also installed systems. The Rural Electrification Au-
thority is currently developing 60 kW solar mini-grids
to supply a community of approx. 50 households.
Hy
dro
A number of studies have concluded that Zambia
has a huge potential for hydropower development.
