CTPD Calls For Urgent Power Sector Reforms To Deliver Zambia’s Energy Compact Commitments

The Centre for Trade Policy and Development (CTPD) applauds the Government of the Republic of Zambia for its bold commitments under the National Energy Compact signed early this year, which aligns with Vision 2030 and Sustainable Development Goal 7. The Compact’s vision to deliver universal access to affordable, reliable, and sustainable energy is one that CTPD is committed to supporting, as part of broader efforts to promote inclusive and sustainable energy access.

One of the most transformative policy shifts is the Open Access Framework which was put in place through the Electricity (Open Access) Regulations 2024, which rightfully aims to unlock Zambia’s power market by providing non-discriminatory access to transmission and distribution networks. This framework is foundational to attracting private investment, scaling renewable energy, and ensuring energy reaches the last mile.

However, these compacts goal is at risk if ZESCO continues to hold dominant, overlapping licenses — as a generator, transmitter, distributor, and system operator. This structure, while historically necessary, is no longer fit for a modern, competitive energy landscape. It presents a clear conflict of interest, discourages independent power producers (IPPs), and risks fair market access for new players being undermined. This concentration of power in a single utility threatens to delay or dilute the impact of open access, despite national commitments.

The National Energy Compact itself highlights the importance of a competitive procurement framework, transparent power planning, and an independent system and market operator. These measures are not just technical aspirations — they are essential tools to achieve Zambia’s ambitions of mobilizing $9.5 billion in private capital and expanding generation to 10,000 MW by 2030.

Thus, we call on the Energy Regulation Board (ERB) and the Ministry of Energy to fast-track efforts to unbundle key functions within ZESCO and operationalize an independent system and market operator by 2025, as committed under the Compact. Additionally, ZESCO should continue engaging transparently and openly with all sector players, and to position itself as a facilitator of national goals rather than a gatekeeper. Most importantly, we call on to all stakeholders to uphold the principles of equity, accountability, and sustainability because universal access cannot be achieved without universal opportunity.

Issued by:
Lucy Musonda (Ms)
Legal Researcher-Centre for Trade Policy and Development