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ZAMBIA POWER SECTOR KEY FIGURES 2025

Installed Capacity 2025 Hydropower Share Non-Hydro Renewable Target Rural Access
3,886 MW Over 80% 33.0% 34.0%

Zambia’s installed electricity generation capacity rose to 3,886 megawatts in 2025, from 3,318 megawatts in 2021, as the government targets raising the non-hydro renewable share of generation to 33.0% from 3.0% after the 2024 drought exposed the risks of hydropower dependence.

Rural electricity access has risen to 34.0% from 8.0% in 2021 through the Rural Electrification Programme, while 125 megawatts of new solar capacity have already come onto the grid, with a further 1,500 megawatts expected within 12 months of the 2026 Budget Speech.

Generation Capacity

Zambia’s national installed electricity generation capacity, including on-grid and off-grid systems, rose to 3,886 megawatts in 2025, up from 3,318 megawatts in 2021, driven in part by energy sector reforms that opened generation, distribution, importing and exporting to private players alongside ZESCO[1]. Over 80% of that capacity is hydropower[1], consistent with the Ministry of Energy’s more granular 2024 breakdown of 3,871.37 megawatts, led by ZESCO’s Kafue Gorge and Kafue Gorge Lower stations[2]. Zambia also trades power regionally through the Southern African Power Pool, importing and exporting depending on need[2].

Diversification and the Solar Build-Out

The 2026 Budget Speech reported 125 megawatts of solar capacity already on the grid, with a further 1,500 megawatts expected within the following 12 months and 300 megawatts of new thermal capacity from the Maamba plant due in 2026, all aimed at lifting the non-hydro renewable share of generation to 33.0% from 3.0%[1]. Government has also installed solar energy in all 116 district councils to reduce the impact of load shedding, and is promoting solar installation for public institutions, households and businesses[1].

Rural Electrification

Since 2022, 130 Rural Electrification Programme projects have been completed, comprising 104 on-grid and 26 off-grid projects, lifting rural electricity access to 34.0% from 8.0% in 2021[1]. Government plans a further 100 on-grid and 30 off-grid projects in 2026[1].

Investment Opportunities

The gap between Zambia’s hydropower-dependent installed base and its 33.0% non-hydro renewable target represents the clearest near-term investment opportunity in the sector, alongside the transmission and grid-integration capacity needed to absorb the 1,500 megawatts of solar generation expected within 12 months of the 2026 Budget Speech[1][2]. Zambia’s single-buyer market structure, with ZESCO as the sole off-taker and bulk retailer, is the framework any new generation project needs to work within, detailed further on the dedicated Energy page[2].

Last Update: September 2026

References

  1. Ministry of Finance and National Planning, 2026 Budget Speech
  2. Ministry of Energy, Energy Sector Overview
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