Energy Minister briefs nation on power and water situation

Energy Minister Makozo Chikote held a press conference to update the nation on the current energy situation, highlighting the challenges and measures being implemented to manage the country’s electricity supply.

Available generation still averaged 890 MW this week, well below installed generation of 3,777 MW. With peak demand of 2,400 MW, the power deficit was 1,510 MW. To make up for this shortfall, ZESCO Limited, along with other traders, imported 496 MW of power from the region. However, this still left a net shortfall of 1,014 MW, resulting in power cuts for more than 12 hours across the country.

To increase electricity supply, President Hakainde Hichilema presided over the groundbreaking ceremony of the US$400 million Maamba Coal Mine Phase II project, which is expected to add 300 megawatts of thermal power generation to the national grid.

Water levels in the country’s major reservoirs, including the Kariba Dam, continue to decline. Kariba Dam currently holds only about 10% of available water for power generation, requiring a high utilization rate to meet demand. With ZESCO’s water allocation at Kariba about to be exhausted, the power deficit is expected to increase by 300 MW. In addition, scheduled maintenance at the Maamba hydropower station in September 2024 is expected to result in a further 135 MW deficit, resulting in an extension of power cuts to 17 hours per day from September 1, 2024.

To alleviate this situation, ZESCO has secured 168 MW of power from ESKOM South Africa and is negotiating with the Southern African Power Pool (SAPP) for another 50 MW, which is expected to start on August 21, 2024.

On the issue of electricity prices, the current cost of electricity imports to ZESCO is 12.6 cents per kilowatt-hour, while the local electricity price is 4.1 cents per kilowatt-hour. The government is consulting with stakeholders to design an electricity price mechanism that will allow ZESCO to recover its costs during the drought.

In addition, the government, through ZESCO, has introduced a net metering program to encourage citizens and businesses to participate. ZESCO provides a list of recommended equipment on its website to ensure quality, reliable and compatible technology choices. The Energy Regulatory Board (ERB) has also approved a step-by-step guide for net metering to ensure transparency and fairness.

To further support the energy sector, the government approved additional incentives for solar, geothermal and liquefied petroleum gas (LPG) equipment. The Rural Electrification Agency (REA) continues to allocate more resources to off-grid and grid-connected solar projects in various communities to reduce the burden on the national grid. In August, REA completed three more solar microgrids: a 60 kW grid in Mpidi, Zambezi District; a 100 kW grid at Chilubi Hospital in Chilubi District; and a 70 kW grid at Chieftainess Mwanya in Lundazi District. This brings the total number of operational solar microgrids developed by REA to 13.

The Energy Minister assured the nation that the government remains committed to addressing energy challenges and ensuring sustainable power supply to the country.