Zambia secures 218 megawatts power from South Africa, Zimbabwe to address energy deficit

The government has announced that ZESCO Limited had negotiated the procurement of 218 megawatts of power from Eskom, South Africa and the Zimbabwe Power Company (ZPC).

Energy Minister, Makozo Chikote, stated that this move was intended to cushion the anticipated power deficit, which currently stood at 1,360 megawatts, leading to loadshedding.

Sharing updates on the energy status in Lusaka on Thursday, Chikote highlighted that as of July 31, 2024, the national peak demand was 2,400 megawatts, while the available power generation was only 1,040 megawatts.

To address this deficit, ZESCO Limited and other traders are currently importing a total of 410 megawatts of power from the Southern Region, leaving a net deficit of 950 megawatts.

Chikote stated that this deficit had resulted in continued power rationing throughout the country.

“The electricity procured from the two companies is expected to be injected into the national grid within the month of August 2024,” he said.

Additionally, Maamba Collieries Limited is scheduled to undertake its mandatory maintenance starting at the end of August 2024, causing an extra power deficit of 135 megawatts for the month of September as the two units for Maamba would be taken off the grid one at a time.

The Minister, however, indicated that progress had been made regarding measures to mitigate the impact of the electricity deficit.

“ZESCO Limited has reached an advanced stage in procuring 90 megawatts generators to be installed at designated locations across the country,” he said.

Chikote stated that sites have already been identified, including strategic institutions such as hospitals, schools, critical business places and markets.

He disclosed that the first 12 megawatts would be secured within August, 2024.

“A significant milestone has been achieved to enhance the country’s energy mix through the KFW-funded GET FiT 120 Megawatts Solar Projects, which have now reached financial closure with its lenders,” Chikote added.

He said this paved the way for the commencement of project development between now and mid-next year.

Chikote stated that these projects underscored government’s commitment to diversify Zambia’s energy mix and ensure a sustainable future for the nation.

“On July 30, 2024, more items were added to the tax-exemption bracket for solar. Effective midnight tonight, the government shall convey instructions to all tax agencies at entry points to update and develop the relevant codes to reflect this change,” he said.

Chikote further indicated that the government would, over the next few days, also table before Cabinet additional lists to allow tax-free importation of Liquefied Petroleum Gas (LPG) equipment to support alternative cooking and geothermal equipment to promote exploration and development of geothermal power plants.

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