{"id":4974,"date":"2026-07-27T09:39:03","date_gmt":"2026-07-27T09:39:03","guid":{"rendered":"https:\/\/mayandco.law\/?p=4974"},"modified":"2026-07-27T10:19:26","modified_gmt":"2026-07-27T10:19:26","slug":"zambias-energy-sector-zambias-journey-to-open-access","status":"publish","type":"post","link":"https:\/\/mayandco.law\/en\/zambias-energy-sector-zambias-journey-to-open-access\/","title":{"rendered":"Zambia&#8217;s Energy Sector: Zambia&#8217;s Journey to Open Access"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">The enactment of the <strong>Electricity (Open Access) Regulations, Statutory Instrument No. 40 of 2024<\/strong>, marked one of the most significant reforms in Zambia&#8217;s electricity sector in recent decades.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Regulations introduced the legal framework for a more competitive electricity market by permitting qualifying generators, traders, suppliers, and consumers to access transmission and distribution networks on a non-discriminatory basis and trade electricity directly with one another.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Almost two years after the Regulations came into force, an important question remains:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Where exactly is Zambia in its Open Access implementation journey?<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">The Independent System Operator (ISO)<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">When the Open Access Regulations were introduced, much of the discussion focused on the ability of independent power producers to sell electricity directly to mines, industrial consumers, and other eligible customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While this remains a key feature of the regime, Open Access requires a much broader market framework to function effectively. This is why the <strong>Independent System Operator (ISO)<\/strong> was created.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Historically, <strong>ZESCO<\/strong> has performed multiple functions within the electricity value chain, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Electricity generation<\/li>\n\n\n\n<li>Transmission<\/li>\n\n\n\n<li>System operations<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Under the Open Access framework, however, the responsibility for operating and managing the Interconnected Power System is intended to be transferred to an Independent System Operator.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Electricity Act<\/strong> defines the System Operator as the entity responsible for the short-term reliability of the interconnected power system. Its responsibilities include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operating the transmission system<\/li>\n\n\n\n<li>Balancing electricity supply and demand in real time<\/li>\n\n\n\n<li>Dispatching generation resources<\/li>\n\n\n\n<li>Ensuring the reliable operation of the national grid on a non-discriminatory basis<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The importance of the ISO cannot be overstated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a competitive electricity market, all market participants must have confidence that access to the grid, dispatch decisions, and system operations are administered fairly and independently.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ISO is intended to provide this neutrality and create confidence among generators, traders, suppliers, and consumers participating in the electricity market.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">The Balancing Agreement<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most critical instruments supporting the ISO&#8217;s functions is the <strong>System Operator Balancing Agreement<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Balancing Agreement is a regulatory instrument that establishes the framework for managing the physical and financial balance of electricity supply and demand across Zambia&#8217;s Interconnected Power System.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Agreement is scheduled to become effective on a commencement date that will be gazetted by the <strong>Minister of Energy<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Importantly, this transition depends on the Independent System Operator being legally constituted and having all the operational arrangements required to discharge its statutory responsibilities. Once these conditions have been met, the system operator functions will formally transfer from ZESCO to the ISO.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In practical terms, the Balancing Agreement will become one of the foundational documents supporting Zambia&#8217;s competitive electricity market.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">The Implementation Roadmap<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Since the introduction of the Open Access Regulations, significant work has been undertaken by the <strong>Energy Regulation Board (ERB)<\/strong>, the <strong>Ministry of Energy<\/strong>, and industry stakeholders to develop the supporting market architecture required for implementation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The transition is currently in an advanced stage of regulatory readiness.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ERB has already advanced the drafting of key supporting documents, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Trading Guidelines<\/li>\n\n\n\n<li>Balancing Mechanisms<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">At the same time, market participants have increasingly begun structuring transactions on the assumption that Open Access will become fully operational, particularly in relation to direct electricity supply arrangements involving:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mines<\/li>\n\n\n\n<li>Large industrial consumers<\/li>\n\n\n\n<li>Electricity traders<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h4 class=\"wp-block-heading\">Summary<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The regulatory developments of 2025 represent a significant shift in Zambia&#8217;s energy policy. However, the full operationalization of the Open Access regime remains pending.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Until all supporting structures are finalized including the legal establishment of the Independent System Operator and the industry&#8217;s collective accession to the Balancing Agreement the electricity sector will continue operating within a transitional phase.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-0d37c7ee-5b88-47ab-8fad-7528898cfdc3\" href=\"https:\/\/mayandco.law\/wp-content\/uploads\/2026\/07\/Zambia-Energy-Sector-Article-2.pdf\">Zambia Energy Sector &#8211; Article 2<\/a><a href=\"https:\/\/mayandco.law\/wp-content\/uploads\/2026\/07\/Zambia-Energy-Sector-Article-2.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-0d37c7ee-5b88-47ab-8fad-7528898cfdc3\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The enactment of the Electricity (Open Access) Regulations, Statutory Instrument No. 40 of 2024, marked one of the most significant reforms in Zambia&#8217;s electricity sector in recent decades. The Regulations introduced the legal framework for a more competitive electricity market by permitting qualifying generators, traders, suppliers, and consumers to access transmission and distribution networks on [&hellip;]<\/p>\n","protected":false},"author":56,"featured_media":4991,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/posts\/4974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/comments?post=4974"}],"version-history":[{"count":2,"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/posts\/4974\/revisions"}],"predecessor-version":[{"id":4987,"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/posts\/4974\/revisions\/4987"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/media\/4991"}],"wp:attachment":[{"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/media?parent=4974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/categories?post=4974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mayandco.law\/en\/wp-json\/wp\/v2\/tags?post=4974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}