Zambia – Power Sector Report

Categories: Electricity, Energy and Natural Resources

Price: $1,295


This report provides a comprehensive industry profile, analysis and outlook of Zambia’s power sector. Electricity, Gas and Water are amongst the smallest sectors in Zambia. The sector contributes just 0.1% points to real GDP growth. In terms of value, the sector is at the bottom of the country’s economy. The government’s commitment to energy infrastructure development has, however, been increasing through higher spending on hydro power projects. With the liberalisation of the sector and unbundling of services currently on the government agenda, the sector is expected to pick up throughout 2015-2017. Activity will be driven public and private infrastructure projects, such as dam reconstruction and rehabilitation, as well as new smaller plants planned in mid-term.

The report provides a SWOT analysis, full overview of the power sector and its segments with a focus on the sector’s growth and value. It analyses the country’s thermal (e.g. gas and oil) and renewable energy sources including solar (photovoltaic) energy and wind energy. It analyses the sector’s potential, scrutinizes the country’s energy security, its electricity supply and demand structure. It gives and overview of the national electrification program, as well as regional interconnection. It summarizes recent developments in the sector including the major projects, companies and investors. It outlines the main factors driving growth in the sector, as well as gives details on capital and financing. The Report explains the sectoral policy and regulatory environment in the country and provides an assessment of the risks and challenges in the sector for domestic and foreign investors. Finally, it provides market trends and outlook.

The report draws on national and international data, statistics, media reports and industry insights. It is useful to domestic and international investors, policy-makers, businesses and research institutions in understanding investment opportunities, risks and challenges, legal and business environment in Zambia.

Table of Contents

1. Zambia: Country Brief

2. Power Sector: An Overview
- Industry Profile
- Power Sector Value
- Growth in the Energy Sector
- Urbanization and its challenges
- Energy Production
- Over 50% to have access to electricity by 2030
- Energy Demand and Consumption
- Energy Security
- Electricity Tariffs
- Disputes over Tariffs
- Investment Pledges
- Zambia’s Infrastructure Funding Gap

3. Energy Infrastructure

4. Regional Interconnection

5. Recent Developments

6. Products and markets
- Hydro power
- Thermal energy
- Renewable energy

7. Leading Companies
- Major Players
- New licenses issued
- Zambia electricity supply corporation (zesco)
- Copperbelt energy corporation (CEC)
- Lunsemfwa Hydro Power Corporation

8. Risks & Challenges

9. Drivers of Growth

10. Capital and Financing

11. Availability of Labour

12. Policy and Regulatory Environment
- Regulatory Authorities
- Sixth National Development Plan & National Vision 2030
- Energy Policy
- Energy Regulation Act of 1995
- Rural Electrification Master Plan (REMP)
- Licenses
- Land Ownership
- Public Private Partnerships (PPPs)
- Fiscal Incentives and Qualifying Thresholds
- Non- Fiscal Incentives
- Priority Sectors

13. Foreign Investment in Zambia
- Zambia woos $1.8bn FDI
- Chinese Investments
- US Investments
- Japanese Investments
- Saudi Arabia getting ready to invest in Zambia
- Foreign Investment Policy in Zambia
- Incentives for Foreign Investors
- Tax Regime
- Economic Zones

14. Market Outlook
- Zambia Outlook
- Energy Sector Outlook
- Challenges remaining

List of Figures:
Figure 1: Provinces in Zambia
Figure 2: Zambia’s Macroeconomic Indicators, 2012-2015
Figure 3: Sectoral Contribution to Real GDP Growth at Constant Prices, 2011-2013
Figure 4: GDP by Kind of economic activity at Constant Prices, 2011 - 2013
Figure 5: Electricity and GDP growth by kind of economic activity at Constant Prices
Figure 6: Installed Generation Capacity by Type of System
Figure 7: Total Installed Generation Capacity (MW), 2011-2030
Figure 8: Evolution of tariffs between 2008 and 2014
Figure 9: Sectoral Investment Pledges, 2011-2013
Figure 10: Infrastructure Needs Assessment 2011-2016
Figure 11: Trade in Energy, 2006-2013
Figure 12: Hydro Energy Generation Plants in Zambia, 2014
Figure 13: Zambia's Installed Hydro Capacity (MW), 2010-2020
Figure 14: Thermal Energy Generation Plants in Zambia, 2014
Figure 15: Zambia's Thermal Installed Capacity (MW), 2010-2030
Figure 16: Upcoming Thermal Projects in Zambia
Figure 17: New Licenses in Zambia’s electricity sub-sector, 2011-2014
Figure 18: Sectoral Distribution of Loans, 2011-2013
Figure 19: Sectoral Employment Creation, 2011-2013
Figure 20: Licenses in the Energy sector in Zambia, 2015
Figure 21: Summary of PPP arrangements in Zambia