By Jane Chanda
Zesco managing director Victor Mapani says the company has increased power imports in the last three months from 64 megawatts to 400 megawatts at a deficit of 7.5-cent deficit per unit compared to the average domestic tariff.
And the Energy Regulation Board (ERB) director general Elijah Sichone says Zambia’s energy crisis, characterised by over 20-hours of daily load shedding and a 700MW power deficit, is not insurmountable.
Speaking at a public discussion forum on load shedding at Taj Pamodzi in Lusaka organised by News Diggers, Zesco Mapani reiterated the company’s efforts to avoid shutting down, citing plans to re-submit its emergency tariff hike proposal to the ERB to raise $14 million per month
Mapani outlined plans to mitigate the deficit by re-submitting its emergency tariff hike proposal to the ERB. This temporary increase aims to raise $14 million per month, covering the cost of power imports and ensuring a sustainable energy supply.
Mapani said the need to diversify Zambia’s energy mix, saying that relying heavily on hydroelectric power posed significant challenges.
“We have realised that relying on hydro power alone is not sustainable, hence the need to explore other renewable energy sources,” he said.
He said Zesco’s efforts to increase power imports have surged from 64 megawatts to 400 megawatts within three months, but that these imports came at a higher cost, resulting in a 7.5-cent deficit per unit compared to the average domestic tariff.
According to Mapani, in the medium to long term, Zesco’s partnership with SkyPower Global for a 1000MW Solar Power Purchase Agreement will bolster Zambia’s integrated renewable energy plan.
Mapani expressed optimism that this initiative would contribute significantly to achieving energy security.
He shared an anecdote about his own personal story where he found lights and aircons on at the Zesco head office during a drought, highlighting the need for change.
“We realised that after signing power purchasing agreements, investors didn’t come back due to unfavorable tariffs and lack of bank loans,” he said.
Mapani said to address this, Zesco was investing in solar power projects, including 100MW plants in Chisamba, Siavonga, and Kafue Lower Gorge, 70 megawatts in Kasama and 50 megawatts in Choma.
And Sichone said with 69% of the population lacking access to reliable electricity, the ERB had taken proactive measures to address the challenges.
He said ERB was making efforts to ensure a sustainable energy future.
The ERB had approved tariffs specific to Zesco’s power supply agreements and implemented a multi-year tariff framework.
According to Sichone, the ERB has approved 13 power purchase agreements, which were expected to reach financial closure soon.
Additionally, the net metering policy allowed consumers to generate their own power and sell excess to the grid at 6 United States cents per kilowatt.
“We have approved tariffs, contrary to popular belief, and our dynamic regulations are responsive to the current status,” Sichone said. “The purchasing of power supply agreements now takes 48 hours, down from 20 days, and we have a tariff path ensuring cost-reflective tariffs to encourage investment and energy efficiency.”
Zambia Association of Manufacturers (ZAM) president Ashu Sagar said that limited power supply had far-reaching consequences, affecting farmers, suppliers, and the entire value chain.
Sagar said that medium to long-term interventions would be effective but acknowledged ZESCO’s current helplessness with short-term measures as a pressing concern. He advocated for a holistic approach, saying,
“We must understand the bigger picture of how this affects not just the value addition industry but the whole value chain,” he said.
Consumer unity trust society (CUTS) International Board Member Sajeev Nair pointed out the need to address technical manpower shortages to effectively utilise imported solar technology.
“The solution lies in investing in solar tech and technical training,” said Nair.
