Zambia's Open Access Electricity Reforms Power Copper Mine Expansion

Zambia's ambitious plan to increase copper production from 800,000 tonnes to 3 million tonnes by 2031 poses significant energy challenges. The country's electricity supply is dominated by hydropower, which makes it structurally vulnerable to climate fluctuations. A severe drought in 2024 exposed the limitations of this model and accelerated reform efforts.

The introduction of open access electricity for copper mines through the Electricity (Open Access) Regulations No. 40 of 2024 has fundamentally altered the commercial relationship between electricity producers, the national grid, and large industrial consumers. Copper mines can now procure power directly from independent producers and route it across the national grid via a wheeling arrangement.

This shift allows mines to diversify their energy sourcing and manage price risk more effectively. The ERB's regulatory checkpoint introduces important oversight but also a potential bottleneck as application volumes grow. Several significant supply arrangements have already been made under this framework, with companies such as First Quantum Minerals and Konkola Copper Mines securing agreements for up to 130 MW of power.