The power deficit in Africa’s red metal producer Zambia has widened to 872 Megawatts from the 700 MW reported 2 months ago as generation at its Kariba, Itezhi -tezhi stations and Kafue Gorge on receding water levels. This was contained in a press release issued by the energy utility ZESSCO on 13 November. This has resulted in extended load managements hours that consumers are experiencing in excess of 15.
As the copper producers energy woes deepen, efforts to plug the deficit are yet to be implemented through imports from South Africa’s Eskom. The power utility applied for a 116% tariff hike with the Energy Regulation Board (ERB) which is yet to make a ruling after consultative session with stakeholders. Parliament recently approved energy reforms that will change Zambia’s energy sector and will attempt to yield efficiencies that have for a long time stifled the sector.
Energy bottlenecks are forecast to weigh private sector activity in the immediate to medium term as the manufacturing cost environment elevates.
The Diode Analyst
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