Africa-Press – Zambia. Zambia is currently facing one of the most critical energy crises since independence, driven by climate-induced droughts and an overdependence on hydropower. These challenges have exposed structural weaknesses in the electricity supply system. In response, the country has initiated bold reforms, including market liberalization, increased private sector participation, and energy diversification. Central to this transformation are regulated open access and the promotion of power trading as both a long-term strategy and a short-term solution.
The energy sector is highly capital-intensive, and before funding projects, investors conduct rigorous due diligence—assessing sovereign risks and vetting Independent Power Producers (IPPs) and traders. Negative public discourse or political interference can jeopardize funding by damaging the reputation of companies engaged in critical negotiations. Reckless statements—particularly from political actors—not only harm individual firms but also undermine the broader goal of universal energy access.
This week a power trader Greenco helped zesco , without them the transaction wouldn’t have happened. With their help in the renewables $70m was raised to set up a 100 MW solar power plant in Zambia. Imagine if a week before this, bad news concerning this company happened? There was going to be no funding.
List of Key Energy Players in Zambia
Africa Energy Trading Group Holdings Corporation
A private energy trading firm involved in cross-border and local electricity transactions. The company is engaged in sourcing and delivering power to eligible bulk consumers.
Africa GreenCo Group (GreenCo Power Services Limited)
A licensed private power trader and intermediary, GreenCo aggregates power from Independent Power Producers (IPPs) and sells it to large customers through Zambia’s open access framework. GreenCo also participates in regional trade under the Southern African Power Pool (SAPP).
Copperbelt Energy Corporation Plc (CEC)
A private transmission and power trading company that supplies electricity primarily to mining companies in the Copperbelt region. CEC operates its own infrastructure and is licensed to import and export electricity, including trade with the Democratic Republic of Congo (DRC).
EnPower Trading Limited
A licensed Zambian energy trader that facilitates power procurement and sales through bilateral contracts and regional platforms. EnPower is part of a new wave of private sector participants promoting market diversification.
Kanona Power Company Limited
An innovative power trading and infrastructure
development company purposed for developing and investing in large-scale power opportunities,
especially for mining, in Zambia and Southern Africa.
Lunsemfwa Hydro Power Company Limited (LHPC)
An Independent Power Producer (IPP) and power trader that owns and operates hydroelectric plants. LHPC sells power to the national grid and is exploring direct sales under the open access regime.
Maamba Collieries Limited (Maamba Energy)
A thermal power producer and trader operating Zambia’s largest coal-fired power plant. The company sells electricity to ZESCO and is strategically positioned to support grid stability, especially during hydropower deficits.
Ndola Energy Company Limited (NECL)
A heavy-fuel oil-based power generation company supplying electricity to ZESCO under long-term Power Purchase Agreements (PPAs). It plays a role in thermal energy diversification and may expand into trading under the new open access model.
North Western Energy Corporation Limited (NWEC)
A private electricity distribution and trading company serving parts of North-Western Province. NWEC buys bulk power from ZESCO and redistributes it to consumers while exploring alternative supply arrangements under open access.
Petrodex Trading LLC
An international private energy trading company licensed in Zambia to engage in electricity procurement and trade. Petrodex participates in facilitating imports and structuring deals between producers and off-takers.
Zambia Electricity Supply Corporation Limited (ZESCO)
The state-owned utility and largest energy trader in Zambia. ZESCO is responsible for national electricity generation, transmission, and distribution. It imports and exports power within the region and is a key player in the Southern African Power Pool (SAPP).
Key Players in African Private Power Trading
Copperbelt Energy Corporation (CEC) – Zambia: Supplies mines and trades with DRC.
Globeleq – Pan-Africa: Operates >1,500 MW of generation capacity.
PowerX – South Africa: Aggregates and sells renewable power.
Symbion Power, AMEA Power, and Enel Green Power: All actively investing in renewables and trading infrastructure across Africa.
Emerging Trends in Zambia’s Energy Sector
Growth in merchant power plants selling electricity directly to large consumers.
Increase in private wheeling arrangements, particularly in the mining and manufacturing industries.
Expansion of cross-border mini-grids and energy-as-a-service models in border communities as viable energy solutions.
Oversight and Governance
The Energy Regulation Board (ERB) plays a central role in:
o Issuing licenses to market participants.
o Approving electricity tariffs and wheeling charges.
o Ensuring equitable access to transmission and distribution infrastructure.
o Mediating disputes and safeguarding public interest.
o Supporting the financial and operational health of ZESCO.
A Call to Action: Zambians Must Lead
The liberalized power sector must be Zambian-led.
Opportunities for Zambians include:
o Developing solar mini-grids in rural areas.
o Participating in regional power trading initiatives.
o Supplying electricity to commercial and industrial customers.
Zambians are encouraged to shift from being consumers to producers and innovators in the energy space.
Road to Success: Unity and Responsibility
Coexistence between the public and private sectors is essential.
Risks to be avoided:
o Name-calling and tarnishing the reputations of key players.
o Political interference and misinformation that create sovereign risk.
The energy sector should be treated as a national development frontier, essential for:
o Job creation
o GDP growth
o Social and economic inclusion
Conclusion: Let’s Own the Solution
Zambia’s energy future lies in:
o Expanding and refining ongoing reforms.
o Deepening support for power trading, open access, and diversification.
These are not just strategies—they are lifelines for Zambia’s development.
Zambians must seize these opportunities and lead the next phase of the energy revolution.
吝 Next Steps
The next article will explore:
o Nuclear power development in Zambia.
o Its potential as a power trading tool and source of foreign exchange earnings.
As EAZ President, I helped lobby to have open access so that anyone with power could use existing infrastructure to sell power either within Zambia or Abroad. This exists in many countries and is an exciting market that creates a new industry like you never imagined. The end winners are the consumers!
As someone often engaged by international stakeholders for investment insights, I am increasingly frustrated by the frequency of avoidable concerns raised from abroad. It is imperative that we, as a nation, exercise caution and foster a cooperative environment that builds investor confidence and supports national development.
Understanding Power Trading
Power trading refers to the buying and selling of electricity between producers, suppliers, and consumers—domestically or across borders. It facilitates optimal use of available resources, helps stabilize national grids, and creates a competitive market that encourages investment and innovation. Private power trading, a subset of this market, allows non-governmental entities such as Independent Power Producers (IPPs), power traders, and private utilities to directly participate in electricity commerce.
Types of Private Power Trading
Bilateral Power Sales – Direct Power Purchase Agreements (PPAs) with large consumers (e.g., mines).
Wheeling and Open Access – Transmission of power via public infrastructure to third-party customers.
Retail Power Supply – Direct sales to end-users in deregulated environments.
Cross-border Private Trade – Export/import of electricity across countries under regional frameworks.
Zambia’s Energy Reform Trajectory
Historical Context: From Monopoly to Mixed Market
1994: National Energy Policy introduced, initiating energy sector liberalization.
1995: Enactment of the Energy Regulation Act and the Electricity Act.
1997: Establishment of the Energy Regulation Board (ERB) to regulate the sector.
These reforms broke ZESCO’s monopoly and allowed private sector participation.
Copperbelt Energy Corporation (CEC) began serving major clients like mines.
Legal and Regulatory Milestones
Electricity Act No. 11 and Energy Regulation Act No. 12 enacted in 2019:
o Enabled open access to the national grid.
o Allowed multiple players to be licensed for generation, transmission, and distribution.
Electricity (Open Access) Regulations of 2024:
o Operationalized open access.
o Permitted large consumers to purchase power directly from IPPs and power traders.
Strategic Role of Power Trading in the Energy Crisis
In 2024, structured imports and private procurement:
o Helped reduce load-shedding.
o Relieved pressure on ZESCO’s limited capacity.
o Ensured stable supply to priority sectors (e.g., schools, hospitals, households).
Power trading is now a core component of Zambia’s energy security.
Balancing Liberalization with Public Utility Health
Open access reforms must not weaken ZESCO, which remains central to the national grid.
Critical measures to maintain balance:
o Regulated wheeling charges to protect infrastructure usage.
o Structured import coordination to ensure national demand is met efficiently.
o Equitable supply allocation between public and private actors to avoid market distortion.
Energy Diversification: A National Imperative
Overdependence on hydropower has proven to be Zambia’s Achilles heel. Diversifying the energy mix to include solar, wind, thermal, and regional imports is not just aspirational—it’s a necessity. Power trading enables this diversification by introducing new players and supply channels into the national grid.
For More News And Analysis About Zambia Follow Africa-Press
