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Unlocking Zambia’s renewable energy potential: Insights from the C&I Energy+Storage Summit

By Gregory Mutumba, Assistant Director – Investment Tracking, Zambia Development Agency 

At the C&I Energy+Storage Summit Zambia 2025 in Lusaka, financing renewable energy projects emerged as a central theme, particularly the role of embedded power generation in strengthening energy security and enabling business continuity. This comes at a critical time, as businesses across Zambia grapple with unstable electricity supply following the 2023/24 drought –the worst in 40 years– which severely affected hydropower, the country’s primary energy source.

The role of bankable PPAs 

A recurring message from the session was the importance of bankable Power Purchase Agreements (PPAs) in driving renewable energy investment. To attract financing, PPAs must be structured to provide confidence for both developers and lenders, with three elements standing out: 

• Risk allocation: Risks should be shared appropriately, with each party assuming those they are best equipped to manage. 

• Credibility of off-takers: Financially stable off-takers are critical in providing confidence to lenders. 

• Negotiated terms: Agreements must strike a balance between safeguarding producers and assuring financiers. 

Energy storage systems, such as Battery Energy Storage Systems (BESS), were also discussed as potential enablers of project bankability by ensuring reliable supply for off-takers. However, in Zambia, the current tariff structure – ranging from 4.07-7.44 US cents – does not yet support widespread adoption of storage solutions.   

The agricultural sector emerged as a focal point for renewable integration. Energy is essential for irrigation, processing, and storage, making renewables a natural fit for boosting productivity and resilience. Embedding energy generation into farming practices could transform Zambia’s agricultural output while advancing sustainability goals. 

Financing models and opportunities

To overcome financing barriers, several innovative models were discussed, including: 

• Receivables-based financing linked to future energy sales. 

• Leasing arrangements that provide flexible payment options. 

• Local currency financing (Zambian Kwacha) to reduce exchange rate risks for domestic projects. 

Policy reforms and market development

For Zambia’s renewable energy market to thrive, policy reforms must set the right foundation. Priority areas include: 

• Open Access to the grid, allowing independent producers to sell power directly. 

• Cost-reflective tariffs to ensure project viability and attract new investment. 

• Capacity building and partnerships with experienced developers to elevate local expertise and quality standards. 

• Alignment with national development strategies to ensure energy investments contribute to long-term sustainability goals. 

The session closed on a positive note, emphasizing Zambia’s untapped potential and the opportunities to learn from more mature markets such as South Africa. By fostering innovative financing structures, strengthening partnerships, and implementing supportive policies, Zambia is well-positioned to accelerate its renewable energy transition. 

About the author

Gregory Mutumba
Assistant Director- Investment Tracking, Zambia Development Agency

Gregory Mutumba

Gregory Mutumba serves as Assistant Director – Investment Tracking at the Zambia Development Agency (ZDA). In this role, he supports the actualisation of investment projects by working closely with key stakeholders to facilitate implementation and resolve any challenges that may arise. With a diverse background in banking and investment, Gregory brings a comprehensive un...