Zambia''s Energy Sector: Balancing Exports and
Zambia''s energy sector stands at a crossroads. While rising electricity exports have bolstered foreign currency reserves, they pose
In that case, the PV production is used to reduce the electricity bill and/ or the diesel fuel bill. As of 2022, the cost of diesel in Zambia was around USD 1.5/litre (Global Petrol Prices, sd) and the efficiency of a generator varies between 25% and 35% if operated at at least 30% of its capacity (Skyllas-Ka-zacos, 2012).
Electricity exports, meanwhile, have exhibited a less consistent pattern being roughly steady up to 2020 but have surged sharply in recent years. From 2020 onwards, electricity exports have grown by an average annual rate of 40%, signalling Zambia's increasing role as a regional energy supplier.
Other than copper, which accounts for 70% of the country's total exports, Zambia exports sugar, tobacco, gemstones, cotton and electricity. Based on data from ZamStats, Zambia's main export trading partners are Switzerland (45% of total exports), Chi-na, DRC and South Africa.
The Zambian regulation foresees customs duty and VAT exemptions for most equipment used in renewable energy or battery storage projects. Detailed information is provided in In this section, we discuss the opportunity of battery storage in combination with solar photovoltaics from a financial point of view.
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