Subsidy Swap: Reducing fossil fuel subsidies through energy efficiency and renewable energy in Zambia
This report examines the potential of subsidy reform to improve cost recovery in the electricity sector and promote clean energy and energy efficiency in Zambia.
In Zambia’s electricity sector, demand has risen faster than supply.
In response to rising demand, several new power plants have been commissioned, including the 300 MW Maamba coal power plant and the 120 MW Itezhi Tezhi hydropower plant in 2016. Subsidies, particularly in the form of under-recovery of electricity sector revenues caused by below-cost pricing, have led to electricity sector deficits and threatened the financial sustainability of the sector.
Price increases in the electricity sector in 2017 of 75 per cent have reduced electricity sector subsidies, but costs remain higher than revenues. This report explores how subsidy reform could help to reduce the cost of subsidies and promote a transition to energy efficiency and clean energy. The report focuses on the mining sector, which is responsible for more than half of all electricity consumption, and the potential of solar PV.
Participating experts
You might also be interested in
Bonn Climate Talks: What to watch for the fossil fuel transition
As governments return to Bonn for the UNFCCC Subsidiary Bodies meetings (SB64), the transition away from fossil fuels will be a key test of whether growing political momentum can translate into practical progress.
Bonn Climate Talks 2026: What to expect after Santa Marta
With UN climate talks starting in Bonn soon, the shift to implementation is being felt, especially in the transition away from fossil fuels.
India’s State Energy Firms can Boost Energy Security by Progressively Shifting Over INR 2 Trillion Per Year From Fossil Fuels to Clean Energy
New research finds India’s nine state-owned energy companies could progressively redirect a significant share of their over INR 2 trillion annual capital expenditure toward clean and reliable energy, strengthening energy security while accelerating the low-carbon transition.
What Happened in Santa Marta?
What happened at the first international conference on transitioning away from fossil fuels? IISD experts share 7 takeaways and discuss what comes next.