Electricity market reforms to unlock new opportunities

Lusaka, Zambia – Zambia's commercial and industrial sectors are grappling with an increasingly intricate power landscape, characterized by surging demand, persistent grid constraints, and a dynamic regulatory framework. This confluence of factors is intensifying pressure on businesses, particularly in the crucial mining sector, to secure reliable and affordable electricity to sustain operations and foster growth. The nation's over-reliance on hydropower, which constitutes over 80% of its installed capacity, has repeatedly exposed its vulnerability to climate change-induced droughts, leading to severe load shedding and significant economic disruption. The government, through entities like ZESCO and the Energy Regulation Board, is spearheading significant electricity market reforms to mitigate these challenges. Key among these is the implementation of open access regulations, which allow qualifying generators, traders, suppliers, and consumers to directly access transmission and distribution networks. This move is designed to liberalize the market, encourage private sector participation, and enable large energy users to diversify their power sources beyond the traditional utility supply. The objective is to create a more competitive and resilient energy market that can support Zambia's ambitious economic diversification and industrialization agenda. These reforms are not merely theoretical; they are being actively discussed and shaped at critical forums such as the C&I Energy + Storage Summit Zambia, scheduled for late September 2026 in Lusaka. The summit brings together key stakeholders, including representatives from ZESCO, the Energy Regulation Board, and the Copperbelt Energy Corporation, alongside industrial consumers and experts. Discussions focus on practical implementation aspects such as wheeling frameworks, tariff design, grid access, and transmission capacity, all of which are crucial for the success of the liberalized market. The mining sector, a signifi