How is Zambia active in the energy sector?

The state is active in the sector in different ways, in policy-making through the Ministry of Energy (MoE) and through various state agencies, including Zesco itself. 1 The Rural Electrification Agency (REA) is mandated to provide electricity infrastructure in rural areas of Zambia.

What percentage of electricity is generated by IPPs in Zambia?

In Zambia in 2019, IPPs accounted for nearly 24% of total electricity generated compared with just over 4% in 2015 ( ERB 2019 and Fig. 2 ). Since 2016 around 10% of electricity has come from a coal-fired IPP, Maamba Collieries.

How has the policy paradigm unfolded in Zambia?

This paper explores how the associated policy paradigm has unfolded in the specific context of Zambia using the Systems of Provision approach. Private investment has in part led to high-cost, dollar-denominated liabilities that risk compromising development objectives in the long term.

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Are Zambia's energy subsidies causing fiscal problems?

The IMF (2017) considers what they term the “large and not well-targeted subsidies” ( IMF, 2017, p.9) in Zambia’s energy sector to be one of the main sources of the country’s fiscal challenges (along with a large public sector wage bill and fuel and agriculture subsidies).

What shaped the reform paradigm in Zambia?

A heavy reliance on mining in the economy, very little rural electrification, as well as a recent drought which led to a crisis in hydropower, have shaped the way electricity is provided and consumed. In Section 4, we turn to explore some central elements of the reform paradigm and its interpretation in Zambia.