Effective Regulation and the Energy Transition in Zambia

Like many countries in Sub-Saharan Africa, the Republic of Zambia (Zambia) is experiencing an electricity crisis as it has not been able to produce enough electricity to meet its demand. In addition, only 46% of its population has access to electricity. Of this number, a mere 14.5% are located in rural and remote communities, which comprise most of the Zambian population. Some of the factors underlying the country’s interrupted power supply and low access rates include no investment in new generation infrastructure for almost 30 years, overreliance on hydropower, excessively low tariffs that stifle private sector investment, and a widely disbursed, less economically empowered population. Solutions incorporating both the extension of the main grid and the installation of mini-grids and stand-alone solar systems will be required to improve Zambia’s energy access and ensure universal access to affordable, reliable, and clean electricity in line with Sustainable Development Goal 7 (SDG 7). To help address Zambia’s energy access gap, decentralized energy systems, including solar mini-grids, will need to be deployed. Zambia needs to bolster investments to scale mini-grid development by creating a more enabling investment environment through transparent, predictable, simpler, and fair regulation. This chapter considers Zambia’s experience with mini-grid development and the role of regulation in scaling the sub-sector.