How the New ‘Open Access’ Policy Unlocks Solar Investment

Zambia is facing its most severe energy crisis in a generation, creating an urgent and unprecedented opportunity for private investment in renewable energy. A combination of a massive, verifiable power deficit, a supportive and decisive government, and a clear national mandate for economic growth has created a secure, low-risk, and highly compelling environment for Independent Power Producers (IPPs).

Previously, the Zambian electricity market operated under a single-buyer model. The national utility, ZESCO, was responsible for purchasing all power from producers and selling it to all consumers. While necessary for a developing grid, this model placed an immense financial and operational burden on ZESCO, making it difficult for new, private energy projects to secure financing and a clear path to market.

The new “Open Access” policy fundamentally changes this dynamic. It allows private power producers, like Zubalight Energy, to access the national transmission and distribution network on a non-discriminatory basis.

This means an IPP now has two clear routes to sell its power:

1. Directly to the national utility, ZESCO, under a long-term Power Purchase Agreement (PPA).
2. Directly to large-scale private consumers, such as the mines that are the engine of Zambia’s economy.

This policy shift directly addresses the key risks for any potential investor and creates a stable, competitive, and profitable market.

• It Fosters Competition and Efficiency: By allowing multiple buyers and sellers, the policy creates a true market, which will lead to better service and more competitive pricing.
• It Reduces Financial Stress on ZESCO: As the Cabinet statement notes, an IPP can now sell directly to a mine “without ZESCO being forced to be the off taker.” This strengthens the financial health of the entire ecosystem.
• It Guarantees a Path to Market: For a project like our Project 20-ZLIGHT-SOLAR, this policy provides absolute certainty that the power we generate will have a secure and reliable path to a creditworthy customer.
• It Attracts Private Capital: This is the clear signal that international investors have been waiting for. It proves that Zambia is serious about creating a modern, transparent, and pro-investment regulatory framework.

With our deep, localised expertise and a de-risked, shovel-ready project, Zubalight Energy is perfectly positioned to thrive under this new policy. Our team, which includes former directors of ZESCO, has an unparalleled understanding of the grid and the regulatory landscape, ensuring we can navigate this new market with confidence and execute our projects to the highest standards.

The “Open Access” policy is the final piece of the puzzle. Combined with the urgent national need for power, it makes Zambia one of the most compelling opportunities for renewable energy investment in Southern Africa today.