Category: Knowledge Base

GENERAL OVERVIEW

Open access in the context of electricity typically refers to a framework that allows multiple power providers to access transmission and distribution networks on a non-discriminatory basis. In a true open access market, regulations are usually put in place to ensure that market participants can use the grid infrastructure without being unfairly treated. Proponents of open access electricity markets believe that opening up the electricity sector to different players will bring about numerous benefits, such as: 

1. Increased competition: Open access opens up the electricity market to various players, potentially leading to increased efficiency and lower prices. It is believed that a market with different players gives consumers the opportunity to choose the provider best suited for their needs based on some metrics like price, service quality, or contract terms.
2. Access to electricity: Open access allows a diversified mix of generators to contribute to the grid, thereby reducing reliance on any single generation source.
3. Investment acceleration: A more competitive and non-discriminatory market encourages investment into the electricity sector.
4. Economic growth and job creation: More opportunities for new businesses and energy services in the energy sector means more job opportunities and economic growth.

ZAMBIA’S ELECTRICITY (OPEN ACCESS) REGULATIONS, 2024

The aim of the regulations which came into force on July 19, 2024 is to attract investments to address Zambia’s persistent energy challenges, especially severe hydro-based shortages during drought. Under the regulations, Independent Power Producers (IPPs) and large consumers can access Zambia’s transmission and distribution systems, and sell electricity directly to consumers, if they meet the regulatory requirements. 

Access (Regulations 2, 4)

Participants may apply under three categories:

1. Long-term access: More than 5 years.
2. Medium-term access: Greater than 3 months, and less than or equal to 5 years.
3. Short-term access: Less than or equal to 3 months.

Participation (Regulation 5)

The following are qualifying participants for open access:

1. A licensee that holds a license to trade in electricity.
2. A supplier.
3. A system user.
4. A consumer.

Eligibility (Regulation 5)

A qualifying participant is eligible to apply for open access if the participant is not or has not been declared insolvent or bankrupt, and is licensed by the Energy Regulation Board. The capacity are as follows:

1. In the case of a licensee that holds a license to trade in electricity, that licensee should have a trading capacity of at least 1 Megawatt.
2.  In the case of a supplier, the supplier should have an installed generating capacity of at least 1 Megawatt. 
3. In the case of a consumer, that consumer should have a  consumption capacity of at least 1 Megawatt.

Application, Review and Approval (Regulations 6,7,8,9,10)

1. Applications must be submitted to the relevant Transmission Network Service Provider (TNSP) or Distribution Network Service Provider (DNSP).
2. Applications must use the prescribed Form I provided in the Schedule of the Open Access Regulations and include supporting documents such as participant’s infrastructure details, entity details, financial security statements, planned volumes of electricity, the intended points for drawing or injecting electricity, and intended duration for open access.
3. The TNSP or DNSP must respond within 30 days; considering capacity, obligations, need for network upgrades, and other existing users.
4. If approved, the TNSP or DNSP notifies the system operator, who must assess the potential grid congestion before final approval.
5. If rejected, written reasons must be provided for rejection.

Allotment priority (Regulation 11)

Priority is given on a first-come, first-served basis, and  in the following order:

1. Qualifying participants meeting demand/security needs.
2. Long-term access.
3. Medium-term access.
4. Short-term access.

Charging, trading and liability (Regulations 14,16, 20)

1. System operator is indemnified under Regulation 20 for third party claims arising from open access operations.
2. Transmission and distribution charges are levied by the TNSP or DNSP, subject to approval by the Energy Regulation Board.
3. An open access user is permitted to trade electricity if the open access user:

1. enters into a participation and balancing agreement with the system operator,
2. provides a proof of notice of approval from a TNSP or DNSP, 
3. uses the transmission or distribution system granted by the TNSP or DNSP, 
4. deposits the necessary financial security to cover energy imbalances requirements,
5. registers the relevant power purchase agreement or power supply agreement with the system operator in the case of bilateral transactions. 

Roles of key institutions

The Energy Regulation Board

1. Issues licenses.
2. Sets pricing methodology.
3. Approves participation agreements and trading guidelines.

System Operator

1. Manages scheduling.
2. Approves access if no congestion.
3. Develops and administers guidelines with the approval of the Energy Regulation Board.
4. Curtails power where necessary.
5. Monitors the compliance of open access users with the rules, codes, practices and guidelines issued by the Energy Regulation Board in relation to open access.

TNSP/DNSP

1. Receives and processes application.
2. Liaises with the system operator.
3. Approves, rejects, or refers applications.

Outlook and Implementation so far

1. Delay in pricing methodology: The Energy Regulation Board is yet to develop a pricing methodology as required by the regulations. The absence of a clear and approved access fees or transmission pricing model has created uncertainty and lack of clarity. 
2. Zambia Electricity Supply Corporation Limited (ZESCO) still plays a dominant role: ZESCO, the state-owned power company in Zambia, is the main supplier of electricity to the nation and is involved in the whole power business chain (generation, transmission, distribution, and supply). In addition to that, ZESCO currently maintains the system operator role. While there are Independent Power Transmission and Distribution Companies like Copperbelt Energy Corporation, and IPPs like Lunsemfwa Hydro Power Company Limited, Kwama Energy, CGM Power Group Limited etc., ZESCO’s continued play raises concerns about fair market access for participants.
3. Market readiness and Infrastructure: For a successful implementation of the regulations, there is a need for the existing grid infrastructure to be expanded and upgraded to accommodate increased power flow from diverse sources, and ensure grid reliability. In November 2023, the Integrated Resource Plan (IRP)  that maps the country’s 30-year energy plan was approved, and subsequently launched in February 2024. The IRP recognizes the importance of improving grid infrastructure. However, grid reinforcement is capital intensive, necessitating substantial investments. Despite the challenges, Zambia has rolled out some power stations like the 100 MW Chisamba Solar Power Plant which was commissioned in June 2025, and the 110 MW Mailo Solar Power Plant which currently injects 25 MW into Zambia’s electricity grid with the completion of its first phase. 
4. Calls for reform: Pressure mounts from parliamentary and civil society actors to separate ZESCO’s roles and operationalize the Open Access Regulations. 
5. For the regulations to succeed in accelerating Zambia’s energy sector and meeting the country’s energy demands; it is important that authorities work towards regulation clarity, and strengthening the grid infrastructure to accommodate the influx of energy mix being directed to the grid. It is believed that with thorough implementation, the Open Access Regulations can foster economic growth and attract new investments.

Floating Solar Farms, also called Floating Photovoltaic (FPV) systems are solar power systems that are  installed on the surface of bodies of water.

Image source: Ocean Sun

With FPV systems, instead of mounting solar panels on land or rooftops, they are attached to floating structures that keep them on water surfaces. These floating platforms (usually made from high-density polyethylene) keep the panels afloat, while anchors and mooring lines keep the entire setup stable and in place. Electricity from the floating panels are carried to an onshore facility or grid by submersible cables.

Some of the world’s largest floating solar farms by capacity are:

1. CHN Energy’s 1GW Floating Solar PV facility in Shandong (China): This 1 GW open-sea offshore solar project is reportedly the largest open-sea floating solar farm in the world so far in 2025. It is located in Kenli District, east of Dongying City in Shandong province of China. It is spread across 1,223 hectares, about 8km off the coast of Dongying City and has over 2,900 PV platforms. This project utilizes the sustainable approach of integrating fishing and solar power, combining fish farming and solar power generation. 
2. Anhui Fuyang Floating Solar Farm (China): This project, located in Fuyang, Anhui province of China sits on a flooded area previously used for coal mining. The project has a total installed capacity of 650 MW, and also integrates solar power generation and fishing. It is a part of the larger 1.2 GW Southern Fuyang Wind-Solar-Storage Project.
3. Omkareshwar Dam Floating Solar Farm (India): This project is a 600 MW full capacity project in Madhya Pradesh, India. The phase 1 with 278 MW capacity has been commissioned. 
4. 550 MW Wenzhou Taihan  Project (China): This is a fishing and solar integrated project at Wenzhou Bay in Zhejiang, China. It has an installed capacity of 550 MW and expected to provide about 650 million KWh electricity annually, sufficient to power 130,000 households. It is reported that connecting this project to the Wenzhou power grid increased the clean energy generation capacity by about 26%.
5. 400 MW Floating Solar Project in Laizhou Bay (China): This project, located in  Zhaoyuan City, spans over an area of about 6.44 square kilometers, with 121 PV sub-arrays. The project uses Grand Sunergy’s seapower double-sided, double-glass heterojunction solar modules, due to the adverse effects of offshore environments on some solar modules.
6. Dezhou Dingzhuang, Shandong (China): The Dezhou Dingzhuang floating solar farm is a 320 MW reservoir-mounted plant located in Shandong, China. This floating solar park is part of a larger renewable energy project that also incorporates a 100 MW wind farm. 
7. Cirata Reservoir Floating PV Power Project (Indonesia): The Cirata floating solar plant was developed by a joint venture of UAE-based renewable energy company, Abu Dhabi Future Energy Company (Masdar) and Indonesia’s PLN Nusantara Power. The power plant has 340,000 PV panels with a capacity of 145 MWac (192 MWp) of clean electricity.
8. The 150 MW Three Gorges FPV (China): Built on a post-coal mine lake in Huainan by Three Gorges, this project is serving about 94,000 homes.
9. The 100MW Ramagundam Floating Solar Project (India): The project is situated on a balancing reservoir, spanning 500 acres. This power plant, fully operational as of July 1, 2022, consists of 40 blocks; each with 2.5 MW capacity, a floating platform and an array of 11,200 solar modules.
10. The 92 MW Floating Solar at Kayamkulam  (India): The Kayamkulam project is situated on the reservoir of the National Thermal Power Corporation (NTPC)’s  gas-based power station in Kayamkulam, Kerala. The project was commissioned in stages. The initial 22MW phase started  in March, followed by a 35MW phase in May, and the final 35 MW in June 2022.