The Zambian Government signed a $75 million financing agreement with the World Bank to enable electricity to reach 65,000 new customers and improve power supply to pre-existing customers as well.
Ultimately, it will extend the existing grid, provide small power sources such as diesel units and solar systems, and promote the use of energy-efficient fluorescent lamps.
Currently, only 2% of the rural population in the country has access to the grid, and frequent equipment breakdowns hinder Zambia Electricity Supply Corporation (ZESCO) to deliver less power than capacity. Without any new power plants coming online for over 30 years, the country is attempting to extend electricity to 66% of the population by 2030 at a cost of approximately $2 billion.
"Our building pattern means that residential and commercial sectors are side-by-side. Mining may be spared [from load shedding] but our future development means we need to increase the levels of supply," consultant economist Oliver Saasa told IRIN.
Speeding up rural electrification will also help kick-start development. "The low access rate for power has inhibited economic advancement and diminished quality of life," the World Bank said in its project overview.
With its significant hydropower potential, Zambia should be a net exporter of electricity to the region through the Southern Africa Power Pool (SAPP). But, due to the current power shortage, ZESCO is importing at increasingly punishing tariff rates.
And as seen with the SAPP, each power pool member is suffering after a long dependency on the heavy coal stock from South Africa. Now members of the SAPP are trying to shore up alternative methods to supply power throughout their perspective countries.