New Energy Rules Spark $2.5 Billion Surge in Investment

As ERB reforms drive major solar projects, expand grid access, and stabilize fuel supply in first half of 2025

By Francis Maingaila

Lusaka, Zambia24 – (25-07-2025)

The Energy Regulation Board (ERB) says its bold reforms in Zambia’s energy sector have spurred over $2.5 billion in investment within the first half of 2025, marking a significant leap in the country’s transition toward a diversified and sustainable energy landscape.

Speaking during a media briefing, ERB Director General Elijah Sichone disclosed that the strategic overhaul has made the regulatory environment more transparent, competitive, and investor-friendly. 

"We have moved swiftly to streamline licensing, improve compliance mechanisms, and reduce red tape to make Zambia’s energy sector more attractive to private investors," Sichone said.

He noted that the reforms have particularly catalyzed growth in solar energy, where several large-scale photovoltaic projects have been commissioned, with others still in the pipeline. 

"This has increased our capacity, created jobs, and diversified the national energy mix," he added.

Sichone further revealed that through targeted initiatives like the Renewable Energy Feed-in Tariff (REFiT) mechanism and enhanced Power Purchase Agreement (PPA) guidelines, investors now have clearer, bankable paths to recovery and profitability.

 "This investor confidence has translated into concrete deals and operational projects contributing to national development," he said.

In terms of access, Sichone said the ERB is working with the Rural Electrification Authority (REA) and ZESCO to extend grid access to underserved communities. 

"The result is that more Zambians, particularly in rural areas, are now benefiting from a reliable supply of electricity, which is essential for economic empowerment," he explained.

On the petroleum front, Sichone said the board has stabilized the fuel supply chain by reviewing procurement procedures and ensuring fair pricing through a revised pricing mechanism. 

"We continue to monitor global price movements while maintaining transparency in our pricing model to protect both consumers and importers," he noted.

He stated that the ERB has also intensified stakeholder engagement to ensure that all players—utilities, consumers, and civil society—understand and participate in the reform process. 

"We believe that inclusivity and accountability are key to long-term sustainability of these reforms," Sichone stressed.

He reiterated ERB’s commitment to promoting sound regulatory practices, environmental stewardship, and social responsibility in line with Zambia’s Vision 2030. 

"Energy is not just a commodity; it’s a driver of transformation. Our job is to make sure the sector delivers maximum value to all citizens," he concluded.

The sweeping changes spearheaded by the ERB come at a time when Zambia seeks to position itself as a regional energy hub, using policy coherence and regulatory discipline as the main pillars for long-term energy security and economic growth.