Categories: Editor's Picks Zambia

Zambia needs diversified electricity investment portfolio – PMRC

The Policy Monitoring and Research (PMRC) recommends that government should continue to make institutional changes to its planning and procurement capacity to secure productive, cost-effective and diversified power sector investment portfolio.
PMRC Executive Director Bernadette Deka says the state should establish a planning function to develop a strategic vision for Zambia’s energy portfolio and guide procurement.
Ms Deka tells Money FM News that the government should also establish a procurement function that sits alongside the planning function to implement the strategy for Zambia’s Power Sector and secure investment at better value for money.
She adds that there is need to speeds up reforms based on diagnostic study on ZESCO Limited to improve the credit-worthiness of ZESCO as off-taker to improve investor confidence through increased financial transparency and more secure guarantees.
Ms Deka further observes the need to make governance reforms to the Energy Regulation Board (ERB) to improve its independence and its effectiveness so that it better serves both investors’ and consumers’ interests.
“Renewable energy is growing rapidly on a global scale, with record numbers of new renewable energy solutions ranging from wind and solar installations coming online every year. Zambia can readily continue this expansion of renewable energy by utilizing existing technologies, investing in improvements to our electricity system, and making smart policy decisions that move the country towards a clean energy future and harnessing its vast potential for renewable energy,” she said.
She noted that improving operational efficiency in the power sector in Zambia will be a key driver for the country’s prospects of substantial progress in the attainment of Sustainable Development Goals, Vision 2030, and the programmes envisioned in the Seventh National Development Plan.
“PMRC reiterates the importance of having a coherent, transparent process that the investor and investing public, the private sector, are able to work towards as well as the public institutions on the Government side — that is, the IDC as investment vehicle and the state utility as off-taker, to achieve predictability and a clearly defined process that lays the foundation towards the attainment of this 600-megawatt target which has been set for renewable energy in Zambia. PMRC’s research and policy contributions on Power Sector Reform and Renewable Energy in Zambia have laid the framework for success and provided key policy recommendations relevant to the discourse,” said Ms Deka.
“Given the challenges of Rising Demand, Below Cost Tariffs, Over Dependence of Hydropower and Climate Vulnerability and Low Rates of Access in Rural Areas, the private sector remains a key investment partner to adequately improving power supply in line with fiscal consolidation. Following PMRC’s recommendations, Government has made reforms to increase tariffs to make them cost-reflective thereby improving the country’s power sector investment climate.”
She noted that to build on this progress Government has demonstrated its willingness and commitment to secure investment in the power sector without compromising fiscal consolidation objectives through the launch of the Scaling Solar Project.


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