Africazine:
Zambia is taking significant strides towards rural electrification with a new pilot programme aimed at providing affordable electricity to underserved communities.
The Global Energy Alliance for People and Planet, in collaboration with Zambia’s Rural Electrification Authority (REA), has launched this initiative, which combines a 50% capital grant with a five-year operating subsidy. This model is designed to attract private investment and ensure affordable electricity tariffs for rural households and businesses.
Zambia’s Innovative Approach to Rural Electrification
The pilot programme is part of a broader effort to accelerate universal rural electrification in Zambia. It employs a blended finance model that emphasizes inclusivity by aiming to electrify every household and business within designated geographic areas, rather than just commercially attractive customers.
Supported by Sustainable Energy for All (SEforALL) and The Rockefeller Foundation, the initiative aligns with Zambia’s Rural Electrification Masterplan 2.0 and the Mission 300 initiative. The goal is to provide decentralized renewable energy to 1,000 communities across the country.
Zambia: Key figures on rural electrification
- 50% capital grant
- Five-year operating subsidy
- Expressions of interest due by 24 July 2026
- Target of electrifying 1,000 communities
- Household clusters ranging from 1,000 to 10,000
Focus on Productive Energy Use in Rural Areas
The programme is designed to enhance the productive use of energy, which is crucial for stimulating rural development. Selected sites have been evaluated for their agricultural production and commercial activity, ensuring that the electricity supplied meets the needs of local businesses.
Expected productive electricity demands include grain mills, irrigation systems, and healthcare facilities. By catering to these larger consumers, the programme aims to improve project revenues and reduce reliance on operating subsidies over time.
Next Steps for Interested Developers
- Shortlisting of up to two distributed renewable energy developers
- Collaborative site selection and negotiations for project implementation
- Expressions of interest must include detailed company information
- Applications due by 17:00 CAT on 24 July 2026
This initiative marks a pivotal moment for Zambia’s rural electrification efforts, aiming to empower communities through sustainable energy solutions.
