The Energy Sector

Abstract

Abstract Piecemeal and incomplete reforms in Zambia’s electricity sector have resulted in suboptimal tariffs, underinvestment, and persistent power supply disruptions. This chapter examines how incomplete sector transitions affected reliability, accessibility, and pricing in Zambia between 2001 and 2021. We also look at how emergency and independent power purchases, as well as a sole off-taker business model, have saddled the national electric utility with unsustainable debt that prevents it from participating in future capacity expansions, and how renewable energy auctions can be quickly deployed and facilitate additional sector reconfiguration options. We also consider the effects of electricity subsidies on households and long-term development goals, as well as alternative industry configurations required to enable scaled-up electricity generation, mining production and beneficiation, and industrialization.