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The Centre for Trade Policy and Development (CTPD) has raised concerns that Zambia’s National Energy Compact could be jeopardized if ZESCO continues to operate with overlapping licenses as a generator, transmitter, distributor, and system operator.
Earlier this year, the government reaffirmed its commitment to the National Energy Compact, a framework aligned with Vision 2030 and Sustainable Development Goal 7, which seeks to ensure universal access to affordable, reliable, and sustainable energy.
CTPD had pledged its support for this vision as part of broader efforts to promote inclusive and sustainable energy access in the country.
While commending the government’s direction, CTPD Legal Researcher Lucy Musonda cautioned that ZESCO’s current structure — while historically necessary — no longer suits the demands of a modern, competitive energy market.
In a statement issued on Tuesday, Musonda noted that the concentration of multiple critical roles in a single entity presents a conflict of interest, discourages independent power producers (IPPs), and risks undermining fair market access for new entrants.
“This concentration of power within one utility threatens to delay or dilute the benefits of open access, despite the country’s national commitments,” she said.
“The National Energy Compact itself underscores the need for a competitive procurement framework, transparent power planning, and an independent system and market operator.”
Musonda emphasized that these measures were not mere technical ideals but essential mechanisms to help Zambia attract an estimated US$9.5 billion in private capital and expand its power generation capacity to 10,000 MW by 2030.
She called on the Energy Regulation Board (ERB) and the Ministry of Energy to expedite efforts to unbundle key functions within ZESCO and establish an independent system and market operator by 2025, in line with the Compact’s commitments.
“Furthermore, ZESCO should engage openly and transparently with all stakeholders in the sector, positioning itself as a facilitator of national development goals rather than a gatekeeper,” Musonda added.
“Above all, we urge all players to uphold the principles of equity, accountability, and sustainability, because universal access to energy cannot be achieved without universal opportunity.”
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