Generation and importation of electricity

  • Blog
  • 3 minute read
  • December 04, 2024

Zambia’s power sector is heavily  dependent on hydropower  for electricity generation. In  2024, 84% of the country’s  electricity has been generated  from hydropower sources. Due  to the challenges associated  with climate change, and the  unprecedented drought the  country has faced in this calendar  year, there has been under  generation by 2,586MW from an  installed capacity of 3,811MW.

Electricity pylons at sunset.

Imports and the Benefit of Interconnectors

As stated before, there was under generation of power by 200% in the first 10 months of 2024. In  order to reduce this production gap, Zambia leveraged on the benefits of being a member state  of the Southern African Power Pool (SAPP), which allows trading  of electricity between member  countries through their respective utility companies. In 2024, the government relied on importation  of electricity from neighboring countries including South Africa, Mozambique, Namibia  and Zimbabwe through the interconnector ecosystem that is present between Zambia and the  aforementioned countries. Per the energy sector’s Integrated  Resource Plan of 2023, the  interconnector capacity Zambia had with neighboring countries was 230 MW with Namibia,  460MW with DRC and 1,400MW  with Zimbabwe.  

Notably, Zambia does not have an interconnector with Tanzania, a link that would potentially give the Country access to the East African Power Pool. In 2017, the Governments of Tanzania  and Zambia published a Project Information Memorandum that detailed the agreement between the Governments of  Zambia, Tanzania and Kenya to interconnect their power systems by constructing an alternative  transmission line covering a total distance of 1,322 km, that is 414km in Tanzania and 908km  in Zambia. The ultimate goal of the project was to link the  Eastern and Southern African  Power Pools, an essential component of the North-South  Power Transmission Corridor.  Although this memorandum  exists, the construction project is yet to be implemented to ensure actualization of direct and indirect benefits. Some of the benefits associated with having an  interconnector include security of  supply, by providing flexible and reliable access to excess power, balancing changes in demand given that renewable sources of energy are less predictable and lowering energy costs when the  country imports from a cheaper source.  

Solar panels in a field.

A practical example of how  Zambia would benefit from  having an interconnector with  Tanzania is as follows:  

In 2024, approximately 27% of Tanzania’s electricity generation came from hydropower. Due to the heavy rains experienced in  Eastern Africa, Tanzania had  excess electricity that resulted in the country shutting down 5 hydropower stations to manage congestion on the national grid. In the event that there was an  interconnector between Tanzania  and Zambia, this would not be  the case as the two countries would have traded power to manage the demand and supply  at any given point. 

Authors

Moonga  Hamukale
Moonga Hamukale

Energy and Infrastructure Leader | Deals Services, PwC Zambia

Energy and Infrastructure Leader | Deals Services
Sonia Kimeto
Sonia Kimeto

Senior Associate | Deals Services, PwC Kenya

Senior Associate | Deals Services
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Contact us

Moonga  Hamukale

Moonga Hamukale

Energy and Infrastructure Leader | Deals Services, PwC Zambia

Tel: +260 211 334000

Sonia Kimeto

Sonia Kimeto

Senior Associate | Deals Services, PwC Kenya

Tel: +254 20 2855000