Zambia’s resilient energy future lies in diversifying renewables

By prioritising climate-resilient energy solutions, Zambia demonstrates that it is not only securing energy access for its growing population but also fostering economic stability and long-term sustainability in light of an unpredictable future.

The Victoria Falls, located on the mighty Zambezi River at the border between Zambia and Zimbabwe, is known as the “smoke that thunders” among locals, a reference to the waterfall’s billowing clouds of mist. But for much of 2024, the thunder was quiet. During this time, Zambia was facing its worst drought in over forty years, exacerbated by climate change and intensified by El Niño. This crisis affected 9.8 million people in Zambia and caused significant displacement.

The impacts of climate change

Beyond being an economic and humanitarian emergency, the drought also triggered a major energy crisis. Water levels in the country’s key rivers and reservoirs, including Kariba Dam, Kafue Gorge and Itezhi-Tezhi, dropped drastically low, severely reducing hydropower generation. With more than 80 percent of the country’s electricity coming from hydropower – a source long considered reliable and stable – the consequences were far-reaching.

Millions of people faced daily power cuts, sometimes lasting up to 21 hours or more, that severely disrupted essential services like healthcare and education. Patients in hospitals were at risk, as the unstable power supply made life-saving medical equipment unreliable. Farmers struggled to irrigate their crops, worsening food insecurity. Small businesses – the backbone of the economy – were also severely impacted and forced to close early or operate at a loss, making recovery even more difficult.

The Pledge to Impact Initiative – promoting productive uses of energy

Diversifying renewable energy sources is therefore key to Zambia’s energy security and resilience. With funding of the International Climate Initiative (IKI), UNDP is helping the government achieve this vision with the support of the Pledge to Impact Initiative.

One of Zambia’s key strategies for scaling up distributed renewable energy systems, such as solar minigrids, is to promote productive uses of energy (PUE) that generate income and improve livelihoods. This includes everything from irrigating crops, milling grains and refrigerating food to powering tools and equipment used by small businesses.

Local partnerships and innovations as key elements

With UNDP support, the Ministry of Energy aims to expand access to PUE by financing innovation and local partnerships. A first step involved mapping existing gaps in PUE financing models, including pay-as-you-go systems, microloans and retailer partnerships, to pinpoint scalable financing approaches. Grants have been provided to small- and medium-sized enterprises in the renewable energy sector, including women-led organisations. One grantee, Finecop, has introduced solar-powered farming equipment, including groundnut shellers, oil pressers and water pumps, at a minigrid site in Zambia’s Eastern Province. These local innovations are helping farmers cut costs, boost yields and withstand climate shocks.

Working for a just and inclusive energy transition

Zambia will not truly succeed unless the energy transition also works for women and under-served groups. Women face greater challenges than men in accessing electricity for business purposes because of restrictive cultural norms, lack of financing to acquire productive equipment such as clean cookstoves, and limited awareness of available opportunities. Overcoming these barriers is essential – not only to advance gender equality, but also to unlock the full economic potential of diversified renewable energy solutions. UNDP is supporting the Ministry of Energy in creating a productive uses of energy roadmap to guide energy access policy and financing, with a strong emphasis on gender equality and social inclusion. The roadmap, to be launched later in 2025, seeks to boost women’s representation in energy decision-making and introduce financial incentives to encourage gender-responsive investments.

The IKI supports update of Zambia’s NDC

IKI funding is also being used for technical analysis of the energy sector as part of preparations for Zambia’s next Nationally Determined Contribution (NDC) – helping ensure these renewable energy priorities are recognised as part of the country’s climate goals while also raising ambition.

To achieve greater impact, the Pledge to Impact project is also working in close collaboration with the  Africa Minigrids Program (AMP) on PUE grants funed by the Global Environment Facility (GEF). The AMP is implemented by UNDP, Rocky Mountain Institute and the Africa Development Bank and aims to boost private investment in solar minigrids.

Prioritised field of action: Ambitious further development and implementation of NDCs and LTSs