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The Zambia Chamber of Commerce and Industry (ZACCI) highlighted the country’s potential in solar energy resources, wind, and hydro especially in the Northern circuit to meet the energy security of the southern African country
The Zambia Chamber of Commerce and Industry (ZACCI) highlighted the country’s potential in solar energy resources, wind, and hydro especially in the Northern circuit to meet the energy security of the southern African country.
ZACCI President Chabuka Kawesha said that some of the potential developers of these energy projects have already advanced in conducting the feasibility studies and are about to reach financial closure. The projects are monitored by the Ministry of Energy through the Office for Promoting Private Power Investment (OPPPI).
Mr Kawesha stated that without a clear pathway for electricity Independent Power Producers (IPPs) to enter into bankable power purchase agreements and sell their power to a buyer at a cost-reflective tariff, the country is likely to see long unwinding load-shedding seasons.
He called for scaling up of the power generation mix by accelerating the development of alternative green and renewable energy sources while adding that the government before year-end 2022 or latest Quarter 1 of 2023 must open a framework that would allow for the procurement of more power from private sector Independent Power Producers (IPPs) at a reasonable price. They should extend a similar grant-aided approach for ensuring low-cost generation as is in the case of government-owned power utilities.
ZESCO and other stakeholders who have expressed interest to invest in the electricity sub-sector like Industrial Development Corporation (IDC) trading Zambia Power Corporation (ZPC) and ZCCM-IH should mirror this approach, the chamber president highlighted. This would help to provide the private sector IPPs with certainty on how their projects could be implemented over the next 3 to 24 months.
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Mr Kawesha stated that ZACCI will continue with consultations on the impact of current load shedding and would arrive at solutions in the short, medium, and long-term to increase electrical power generation and improvement of the national transmission network.
