CEC positions itself to meet growing demand for clean, reliable, and affordable energy.

By Ennie Kishiki Mutepuka.

Zambia’s renewable energy sector is entering a decisive phase as persistent power shortages and climate-related disruptions force a reassessment of the country’s long-standing dependence on hydropower. 

At the centre of this shift is Copperbelt Energy Corporation (CEC) Renewables Limited, whose latest results point to both the opportunities and constraints shaping Africa’s broader energy transition.

According to its 2025 Integrated Annual Report, the company recorded a 14 percent increase in revenue to US$9.6 million, alongside rising solar generation, despite a difficult operating environment marked by reduced water levels and regional electricity deficits. 

Zambia’s energy mix has historically been dominated by hydropower, a system that, while relatively low-cost and clean, has become increasingly vulnerable as climate variability intensifies across southern Africa. 

Prolonged dry spells and erratic rainfall have reduced water levels in key reservoirs, constraining generation capacity and triggering widespread power shortages affecting households, mining operations, and industrial output.

Within this context, the expansion of solar energy represents more than incremental growth. It reflects a strategic shift toward diversification and resilience in a system under strain.

CEC Renewables reported total generation of 171.28 GWh in 2025, up from 154 GWh the previous year, driven largely by the full-year contribution of the 60 MW Itimpi Solar PV Plant. 

The company is now moving to significantly expand its capacity through the 136 MW Itimpi Phase 2 project, which had reached 75 percent completion by the end of 2025 and is expected to double operational output once commissioned.

The report, however, also underscores the limits of relying on a single renewable source. 

Revenue fell slightly below forecast due to prolonged periods of low solar irradiation, highlighting the continued exposure of energy systems to weather variability. 

This points to a broader challenge facing African economies: the need to build diversified and flexible energy systems capable of withstanding both climate and market shocks.

CEC’s response has been to explore the integration of battery energy storage systems, with pre-feasibility studies completed for co-locating storage at its solar plants. 

Such systems are increasingly seen as essential to stabilizing supply, allowing excess energy generated during peak periods to be stored and deployed when production falls or demand rises. 

In Zambia’s case, where both hydropower and solar output are influenced by environmental conditions, storage is likely to become a critical component of long-term energy security.

The company’s expansion has been supported by innovative financing mechanisms, including a US$200 million green bond programme listed on the Lusaka Securities Exchange.

In 2025, CEC utilized 66 percent of the remaining funds under the programme to finance construction of the Itimpi Phase 2 project, while also meeting its financial obligations, including a US$12.75 million coupon payment. 

Continued investor confidence in the company’s strategy reflects a growing recognition that renewable energy projects in Africa can offer both environmental and commercial returns.

CEC Renewables estimates that its operations displaced approximately 57,000 tonnes of carbon emissions in 2025, contributing to Zambia’s national decarbonization goals and broader global climate commitments. 

The company’s expansion is aligned with national policy frameworks, including the National Energy Policy and Integrated Resource Plan, which emphasize diversification of the energy mix and increased investment in renewable sources.

Zambia’s experience reflects a wider trend across sub-Saharan Africa, where governments and private sector actors are accelerating investment in renewable energy in response to climate risks, rising demand and global decarbonization pressures. 

Yet the transition remains uneven and complex, constrained by infrastructure gaps, financing challenges and regulatory uncertainties.

Looking ahead, the commissioning of the Itimpi Phase 2 plant is expected to mark a significant milestone in Zambia’s energy transition, with the potential to strengthen energy security and reduce dependence on hydropower. 

The longer-term success of this shift, however, will depend on whether renewable expansion is matched by investment in storage, transmission infrastructure and policy reform.

In a region where electricity shortages have long constrained economic growth, Zambia’s evolving energy strategy illustrates both the urgency and the possibility of transition. 

What is emerging is not simply a move toward cleaner energy, but a broader reconfiguration of how power is generated, financed and sustained in an increasingly uncertain climate.