CORPORATE PHILOSOPHY

CORPORATE PHILOSOPHY The mining sector is currently the largest energy consumer in Zambia, consuming a total of 51.08% of the energy produced. This is followed by the domestic consumption sector which stands at 33.16%. The finance and property sectors in Zambia jointly have an energy consumption of 5.46%, with the manufacturing and agriculture sectors consuming of 3.38% and 2.27%, respectively, of the energy produced (ERB Energy Statistics, 2018). There is evidence of a major power supply deficit in the Southern African Development Community (SADC) and Zambia is no exception. The ramifications of the country’s failure to diversify its electricity generation mix became marked in 2015/2016, 2018/2019 and 2019/2020 when the energy deficit resulted in unprecedented levels of electricity supply rationing to all consumers. The country’s power crisis has been largely as a result of inadequate and delayed investments in generation and transmission infrastructure and the failure to diversify energy generation sources over the last 30 years. This was further compounded by inadequate incentives to attract investment in the sector. The deficit was exacerbated by the effects of climate change, in particular low rainfall, given that Zambia has been highly dependent on hydro-pow[1]er. Thus, while Zambia’s installed capacity has continuously trailed behind the demand, actual generation, which is limited by water reserves, has fallen short of demand since 2016. Demand for electricity stood at 6,949 MW; however, the sector was only able to generate 3,281 MW. This situation was largely as a result of inadequate and delayed investments in generation and transmission infrastructure and the failure to diversify energy generation sources over the last 30 years. This was further compounded by inadequate incentives to attract investment in the sector. The deficit was exacerbated by the effects of climate change, in particular low rainfall, given that Zambia has been highly dependent on hydro-power despite the envisaged growth of other sources of energy to about 15 percent by 2030 (7NDP, 2017). To increase supply, there is need to promote investment in generation facilities such as hydro, nuclear, geothermal, wind and solar energy generation plants. The current projections indicate that growth in demand will increase between 500 MW and 800 MW per annum. The peak demand for electricity in the country is likely to be 6,908.75 MW by 2023 and is expected to increase to over 13,525 MW in 2030. It is anticipated Lunyati will supply power to the local market, and would seek to enter into power purchase agreement with ZESCO, CEC, and also directly sale to the local community and others such as export to neighbouring countries. The local community’s primary economic activity is agriculture, with fuel wood as the main source of energy.