Zambia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in zambia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Energy
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Zambia’s installed electricity generation capacity increased to 3,985.86 MW by mid-2025, of which 85 percent  is hydropower, with major structural shifts in energy access and solar capacity, while the market structure, main actors, and sector opportunities remain largely unchanged from previous years. The mining sector remains the country’s largest power consumer but, due to access change, now absorbs a reduced share, followed by the residential/domestic sector, where consumption rose in share and volume due to electrification programs and net metering. Only 54 percent of Zambians have access to the national power grid (80 percent of urban residents and 34 percent of rural residents). 

ZESCO, a vertically integrated parastatal utility, operates government-owned power stations and is responsible for maintaining and installing transmission lines and distribution networks. As of early 2025, Zambia has started implementing significant electricity sector reforms – including open access to the transmission network, market liberalization, and enhanced frameworks for private sector participation and Independent Power Producers (IPPs). ZESCO is evolving from being the sole off-taker and bulk retailer to an energy market enabler, allowing increased direct IPP involvement and more open access to the grid. 

ZESCO’S combined generation capacity from its hydropower stations exceeds 2,900 MW, with total national installed electricity capacity reaching approximately 3,871 MW as of 2024 – a number that is growing as new projects come online. Zambia’s main hydroelectric facilities – such as Kariba North Bank (1,080 MW), Kafue Gorge (980 MW), Kafue Gorge Lower (750 MW), Victoria Falls (108 MW), Lunsemfwa Hydro (56 MW), and Itezhi Tezhi (120 MW) – remain crucial, but drought-induced hydropower deficits have pushed significant government interest and IPP expansion into renewables, thermal, and coal. The Maamba Collieries Limited coal-fired power plant (largest IPP) continues to provide up to 300 MW to the grid. 

Zambia’s utility-scale solar installed capacity is rising rapidly. In June 2025, the 100 MW Chisamba Solar Power Plant was commissioned, with plans to double its output in a second phase. The government and ZESCO have announced that solar capacity on-grid could reach 800-1,000 MW by the end of 2025, driven by projects in seven provinces, with net metering and private-sector-driven initiatives also contributing. Notable legacy utility-scale facilities include the Bangweulu Solar Power Station (47.5 MW) and the Ngonye Solar Power Station (34 MW).

Sub-sector Best Prospects

Solar Power:  Zambia has abundant potential to generate additional solar power as it possesses ample and intense sunlight, averaging about 2,600 - 3,000 hours of sunshine per year. 

Opportunities

Given Zambia’s continually growing power needs for commercial and residential use, and ability to export through the Southern Africa Power Pool, there are significant investment opportunities in on- and off-grid power generation, particularly with regards to renewable energy sources. There are opportunities in electricity generation, transmission, and storage, particularly with regards to renewable energy sources (i.e. wind, solar, and hydro). While Zambia has the potential to generate 2,300 MW of solar and 3,000 MW of wind, only 225 MW of solar has been installed and there is no wind power to date. 

Key government and regulatory agencies for energy and solar projects:

Industrial Development Corporation (Zambia) Limited 
610 Independence Avenue, Prospect Hill
P.O. Box 37232, Lusaka, Zambia
Tel: +260 211 843 567 | +260 211 843 568 | +260 967 773 007
info@idc.co.zm 
https://www.idc.co.zm/

Ministry of Energy
Stand No. 1200, Medland Road
Off Addis Ababa Road,  Rhodespark
Lusaka, Zambia
Tel: +260 211 252 666 | +260 211 252 698
https://www.moe.gov.zm/

Energy Regulation Board
Plot No 9330, 
Off Alick Nkhata Road
P.O. Box 37631 
Lusaka, Zambia
Tel: +260 211 258 844 | +260 211 258 849
https://www.erb.org.zm

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