ECONOMIST Lubinda Haabazoka has called on Zambians to take the lead in steering the country’s energy transition, stating that sustained reforms, robust power trading, and a diversified energy mix are no longer optional, but essential for national survival.
In a detailed commentary titled “Power Trading, Open Access, and Energy Diversification in Zambia,” Dr Haabazoka has argued that the country’s energy future depends on a stable investment climate, effective market liberalisation, and Zambian leadership in the evolving power sector.
He stated that Zambia’s heavy reliance on hydropower has left the energy system deeply vulnerable to climate-induced droughts, which have triggered one of the worst electricity crises since independence. In response, government reforms have aimed to liberalize the market, encourage private sector investment, and diversify energy sources.
He stated that reforms such as open access to the national grid and power trading are not just policy options, they are lifelines.
Dr. Haabazoka, a former president of the Economics Association of Zambia, also explained that power trading which is the buying and selling of electricity among producers, suppliers, and consumers can improve grid reliability and attract innovation by opening up the market to Independent Power Producers (IPPs) and traders.
Dr Haabazoka has however warned against fully liberalising at the expense of ZESCO, the state utility that remains critical to the grid’s operation.
“Reforms must not compromise the health of ZESCO, which remains vital to grid operation. Key safeguards include: Regulated wheeling charges to ensure infrastructure sustainability.Coordinated imports to prevent market fragmentation.Fair allocation of power between public and private actors to avoid distortion.The Urgency of Energy DiversificationZambia’s overdependence on hydropower has become a major vulnerability. Transitioning to a diversified energy mix—including solar, thermal, wind, and regional imports is not optional; it is essential. Power trading accelerates this shift by integrating new suppliers into the grid,” Dr Haabazokasaid.
He pointed to the recent US$70 million financing secured for a 100MW solar project—facilitated by power trader GreenCo and ZESCO as evidence that structured private sector involvement can deliver real results.
However, he warned that political rhetoric and misinformation can quickly erode investor confidence and jeopardize such deals.
