Zambia’s Energy Regulation Board (ERB) has approved energy-sector investments worth about ZMW18.4 billion ($971.5 million).
The approvals cover 23 licenses, 20 construction permits, and license inclusions across the electricity, renewable energy, and downstream petroleum sectors. They include renewable energy equipment manufacturing and supply, petroleum transportation and distribution, lubricant imports and blending, and 116 petroleum transporters. The regulator also approved the commissioning of five retail service stations and two utility-scale solar projects.
The approvals come as Zambia works to address an electricity shortage caused by severe drought and lower hydropower generation. In February, the government told Parliament that domestic electricity generation had fallen to 1,635 MW against national demand of about 2,400 MW. This forced the country to import 511 MW of electricity at the time.
The International Monetary Fund expects Zambia’s electricity deficit to grow further in 2026 because the new generation is still not enough to meet rising demand from households, mines, and other large businesses. The government is responding by developing more solar and thermal generation while continuing to invest in hydropower.
The renewable energy approvals could help Zambia increase electricity supply and reduce its dependence on hydropower, which remains vulnerable to drought. The ERB’s 2025 Energy Sector Report estimated that projects already in the pipeline could add about 500 MW of renewable generation capacity in 2026, with projects linked to the government’s 1,000 MW solar target expected to come online. However, the latest statement does not give the expected generation capacity or investment value of the two newly approved utility-scale solar projects.
The ERB’s decision also covers more than electricity generation. Zambia relies heavily on imported petroleum products, which enter the landlocked country through neighboring states before moving through road and pipeline networks. The government has linked rising petroleum demand to growth in industrialization, mining, agriculture, and population, making reliable transport and distribution infrastructure important to the country’s energy supply.
The approvals also come as Zambia reforms its petroleum supply chain. In July, the government said it had reduced petroleum-procurement debt from more than $900 million in 2022 to about $210 million. It also said the TAZAMA Open Access Framework helped reduce diesel pump prices from K32.54 per litre in March 2025 to K28.11 in July 2026. The government reported strategic fuel stocks covering 21 days of diesel consumption and 15 days of petrol consumption.
For electricity, however, regulatory approval does not mean that new generation will come online immediately. The ERB has previously identified financial closure as a major challenge for renewable energy projects, pointing to weaknesses in project development, financial modelling, and project packaging. The newly approved projects will still need to secure financing, move through construction, and reach commercial operation before they can make a meaningful contribution to Zambia’s electricity supply.
source:www.ecofinagency.com
African Energy Council