Energy Shift
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| Key players in the Energy sector during the launch |
By Francis Maingaila
Lusaka, Zambia – 14-02-2025
The Zambian government has officially launched the Electricity Open Access framework, marking a pivotal milestone in transforming the country's electricity market into a more competitive and transparent one.
Energy Minister Makozo Chikote, addressing attendees, clarified that this initiative is intended to open Zambia’s transmission and distribution networks to qualified participants, thus encouraging fair competition and stimulating growth within the energy sector.
The framework’s goal is to diminish monopolistic control, encourage private investment, and enhance the efficiency of energy distribution. These changes are expected to lower consumer costs, improve service delivery, and contribute to national economic growth.
This initiative follows the Cabinet's approval on June 10, 2024, and is in line with the Electricity Act No. 11 of 2019 and the Energy Regulation Act No. 12 of 2019. To implement these laws, the government introduced Statutory Instrument No. 40 of 2024—the Electricity Open Access Regulations—on July 19, 2024.
“These regulations offer clear guidelines for operating in the open access market,” Minister Chikote remarked. “The framework lays the legal groundwork for open access, helping stakeholders understand their responsibilities and procedures for accessing transmission and distribution networks.”
A central aspect of the framework is an online platform for processing access requests. This tool allows eligible participants to apply from their offices, streamlining the process and encouraging greater involvement.
The initiative is expected to draw private sector investment, fortify Zambia’s energy resilience, and enhance service delivery.
The Ministry of Energy will actively oversee the framework's implementation to ensure it effectively addresses the sector's needs.
Minister Chikote also extended his gratitude to KfW Development Bank for their financial and technical assistance in the development of the regulations, and to the Foreign, Commonwealth & Development Office (FCDO) through Cities and Infrastructure for Growth (CIGZambia), which supported the creation of an independent system and market operator.
At the same event, Bernhard Trautner, Deputy Head of Mission and Head of Cooperation at the German Embassy, reiterated Germany’s ongoing support for Zambia’s energy sector.
The German Embassy has reaffirmed its commitment to Zambia’s energy development, highlighting the 16-year collaboration that has been integral in advancing energy projects, alongside efforts in economic development, nutrition, and agriculture.
Trautner acknowledged the mounting challenges facing Zambia’s energy sector, including resource limitations and growing demand, which have strained both industries and communities.
He underscored the importance of Zambia’s integration into a regional energy trading bloc, which promises to improve energy security, expand electricity access, and ensure fair pricing, while also encouraging private sector participation.
The Zambian government, through the Ministry of Energy, has introduced sweeping reforms to regulate the energy market, overhaul transmission pricing, and refine market structures.
Notably, the Electricity Open Access Online Platform is expected to simplify energy trading and attract new investments.
Germany’s assistance has been crucial in Zambia's energy transformation, focusing on renewable energy, hydroelectric power, and enhancing national grid infrastructure, all aimed at ensuring more reliable power supplies and efficient electricity distribution.
Trautner affirmed Germany’s continued support, emphasizing their collaborative efforts to drive innovation and progress, alongside Zambian authorities and stakeholders, to further the country’s energy development.
"As Zambia moves toward a more resilient and sustainable energy future, Germany remains a steadfast partner in fostering progress, investment, and regional energy integration," he concluded.
Ms. Susanne Guether, an officer at KfW Development Bank, provided further insight into the benefits of Zambia's Electricity Open Access framework.
She emphasized how the new system would boost competition among electricity generators, which will lead to operational efficiencies across the sector.
With more players entering the market, the incentive to optimize operations will result in cost reductions, ultimately benefiting consumers with lower prices and improved service delivery.
The framework will also offer consumers more options, enabling them to choose suppliers based on factors such as service quality, pricing, and tailored energy solutions.
This expanded choice is expected to enhance customer satisfaction and improve the overall quality of energy services.
Ms. Guether also noted that the Electricity Open Access model facilitates the integration of renewable energy into the national grid.
By granting all generators, including renewable energy providers, equal access to transmission infrastructure, the system fosters cleaner energy solutions. This aligns with Zambia’s objectives to diversify its energy sources and reduce reliance on fossil fuels.
From an economic standpoint, Ms. Guether emphasized that the framework would spur investment in energy infrastructure, create new job opportunities, and stimulate innovation. The increased competition and market accessibility for independent producers will further drive economic growth.
She concluded by highlighting KfW’s pivotal role in supporting Zambia’s transition towards a more competitive and sustainable energy market. “By facilitating Zambia’s energy transformation, KfW is helping the country meet its long-term energy and environmental goals,” she said.
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