Energy Sector Receives World Bank Boost
A ZESCO substation in Lusaka, Zambia
President Hakainde Hichilema’s commitment to see an additional 2000 Megawatts of electricity generation and expanding electricity access to 66% of Zambians by 2030 has received support from the World Bank after it pumped in $100 million US dollars.
The support is meant to improve the financial performance and operational reliability of the Zambia Electricity Supply Company (ZESCO) and to support the Rural Electrification Authority (REA) with strengthening the implementation of the Rural Electrification Fund.
This funding is expected to support the National Energy Advancement and Transformation (NEAT) program, a ten-year multi-phased facility with a resources envelope of $700 million aimed at increasing financial sustainability, operational reliability and resilience of the electricity sector in Zambia.
Government has noted that the support is timely as the country is grappling with the effects of the drought that has severely affected the energy sector manifesting through lowered power production output at the country’s main hydro- power source (Lake Kariba).
Therefore, the support aligns well with Government’s taken measure of enabling diversification in the energy sector by promoting the use of alternative and renewable energy sources spearheaded by the development of solar power projects.
The NEAT program’s implementation is critical in enabling access to reliable and sustainable energy sources as it is intended to enhance Zambia’s procurement processes of non-hydropower renewable energy sources.
The key activities to be supported in this project includes supporting ZESCO to manage its debt and arrears, optimising costs and reducing the upfront cost of connecting new customers through a grid connection subsidy, a move that will see many Zambians have access to affordable electricity.
In addition, the support will help the establishment of the Rural Electrification Fund –REF- which will catalyse the electrification of rural communities.
Meanwhile, Government through the Zambia Environmental Management Agency (ZEMA) has approved five solar energy projects with a total capacity of 270 megawatts (MW) and six dam projects anticipated to help mitigate the adverse effects of drought in the long run.
These projects are among the critical projects identified by Government slated for implementation to enable citizens both in urban and rural areas access electricity and promote the use of renewable energy sources.
Some of the projects lined up for implementation expected to contribute a significant amount of power generated through solar is the construction of a 200 Megawatts solar power plant in Chisamba district by ZESCO.
Another critical solar power project expected to contribute 50 Megawatts of power to the national grid once operationalized is the 50 MW solar power plant proposed to be developed in Chanyanya Area of Kafue District in Lusaka Province by Sevenyrds (7yrds) Energy Limited.
Realizing that access to electricity is critical to rural areas as well, supplemented by the private sector, Government plans to construct a 20 Megawatts Solar power plant in Chief Mukonchi’s area of Kapiri-Mposhi district to be undertaken by Lunsemfwa Hydro Power Company.
The decision by ZEMA has been taken to respond to President Hichilema’s call on the country to speed up investment in the energy sector and water harvesting facilities to increase productivity.