Zambia's Ambitious Power Overhaul Positions it as Southern Africa's Energy Hub

Zambia is accelerating a multi-pronged overhaul of its power sector, combining new generation capacity, grid reinforcement and regional interconnection to address domestic supply constraints while positioning itself as a strategic electricity hub in Southern Africa. At the center of this effort is renewed momentum behind the Batoka Gorge hydroelectric project, a long-delayed flagship development on the Zambezi River near Victoria Falls. Earlier this month, Zambia and Zimbabwe agreed to mobilize $440 million to restart preparatory works, with each country committing $220 million toward the project’s eventual $4.2 billion cost. Once completed, Batoka Gorge is expected to add 2,400 MW of installed capacity, split evenly between the two countries, significantly expanding available baseload power in the region. Developed through the Zambezi River Authority, Batoka Gorge has long been viewed as a cornerstone of regional energy security. For Zambia, its revival reflects a broader strategic recalibration driven by rising electricity demand and growing exposure to climate-related hydropower volatility. Prolonged droughts in recent years have constrained output at major assets such as the Kariba Dam, exposing the risks of a power system where hydropower accounts for roughly 80% of installed capacity. To reduce this vulnerability, the government has adopted a diversification strategy that extends beyond large-scale hydro. National electricity access currently stands at approximately 51%, with rural access closer to 33%, underscoring both the scale of unmet demand and the political urgency of expanding supply. Zambia has set a target of reaching 10,000 MW of installed capacity by 2030, largely through renewable energy, including an estimated 3,000 MW of solar generation. That transition is already taking shape. The 110 MW Mailo Solar Plant in Serenje began generating power in October 2025, adding meaningful capacity to the grid while helping offset seasonal hydropower fluctuations. It has been followed by a wave of additional solar projects, most notably the 100 MW Chisamba Solar Power Plant, commissioned in June 2025. Chisamba supplies electricity directly to industrial off-takers such as First Quantum Minerals under a long-term power purchase agreement, easing pressure on hydropower resources and freeing capacity for broader grid distribution. Generation expansion, however, is only one side of Zambia’s power equation. Aging transmission infrastructure has long constrained system performance, contributing to technical losses, equipment failures and bottlenecks between generation sites and load centers. In response, national utility ZESCO has accelerated grid reinforcement, including the completion of a second 330 kV transmission line between Kabwe and Pensulo and ongoing works on the Kafue West–Muzuma 330 kV line. These upgrades are designed to improve power flows across multiple provinces and better integrate new solar capacity into the national grid. Beyond domestic transmission, regional interconnection has emerged as a defining pillar of Zambia’s energy strategy. The $292 million Zambia–Tanzania Interconnector Project, backed by the World Bank and development partners, is constructing a 400 kV corridor linking Zambia to Tanzania and, by extension, the East Africa Power Pool. Once operational, it will allow Zambia to import power during supply shortfalls and export surplus electricity, linking Southern and Eastern African power markets for the first time. Additional cross-border projects are advancing through feasibility stages, including a proposed Angola–Zambia interconnector that could enable imports of up to 2 GW of Angolan hydropower, as well as a planned high-voltage line with Botswana aimed at expanding electricity trade within the Southern African Development Community. Taken together, Zambia’s push to diversify generation, modernize transmission and deepen regional integration marks a decisive shift in how the country approaches energy security. As climate risks intensify and regional power demand continues to rise, Zambia is not only reinforcing its own grid but laying the groundwork to become a key node in Southern Africa’s evolving electricity landscape.