Zambia’s President Hakainde Hichilema delivered some inspiring news for the energy sector, and private players in particular, when he stated that Open Access Regime was on Government’s to-do list to help promote investment.
The President made the statement during the State of the Nation address on 8th September 2023 in Parliament in Lusaka Zambia.
“To promote competition and allow for non-discriminatory access to electricity transmission and distribution infrastructure by the private sector, Government is in the process of implementing an Open Access Regime. private sector players will be able to wheel power to their customers and will also help remove ZESCO from entering into unsustainable power purchase agreements”, said President Hichilema whilst delivering his speech on the State of the Nation.
The President also applauded the work of the national utility ZESCO for signing several Power Purchase Agreements. ZESCO remains an important factor in the success of open access as it has already played a key role in enabling players such as GreenCo to enter the market and participate as the new buyer and trader in the renewable energy sector and to become the 18th member of the Southern African Power Pool.
Through its collaboration with ZESCO GreenCo is facilitating the implementation of the first open access project in Zambia; Ilute Solar PV project in Western Province.
About the Illute Project: In a first of its kind structure in Africa, Ilute will sell all the power generated to GreenCo whilst compensating ZESCO for their system operations services. The construction of the project will involve USD 40m of foreign direct investment from leading investors, which is a clear signal of support for the reforms enacted in the Zambian electricity sector.