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Zambian Power Industry Set to Expand to Meet Rising Demand - New analysis from growth consulting company Frost & Sullivan, Strategic Analysis of the Zambian Electricity Industry, finds that the market earned revenues of $188 million in 2006 and estimates this to reach $285 million in 2013
Zambian Power Industry Set to Expand to Meet Rising Demand

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2007/11/29 - New analysis from growth consulting company Frost & Sullivan, Strategic Analysis of the Zambian Electricity Industry, finds that the market earned revenues of $188 million in 2006 and estimates this to reach $285 million in 2013.

   
 
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The Zambian government has embarked on efforts to develop its power industry to meet the rising demand for power. Efforts are underway to attract private companies to participate in the country as independent power producers (IPPs) or form public-private partnerships with the Zambian Government.

New analysis from growth consulting company Frost & Sullivan (power.frost.com), Strategic Analysis of the Zambian Electricity Industry, finds that the market earned revenues of $188 million in 2006 and estimates this to reach $285 million in 2013.

"The country's thriving mining sector has significantly raised the overall demand for power in Zambia," says Frost & Sullivan Research Analyst Moses Duma. "The government has now embarked on upgrading and expanding installed power generation capacities, while also inviting the private sector to build new plants."

The Zambian Government currently lacks the ability to develop the needed generation capacity to meet the rising local and export demand. As a result, it has launched efforts to attract the participation of private companies in the power industry.

While these are promising trends, major obstacles remain. Key challenges to the growth of the Zambian electricity industry are the dominance of the state utility, Zesco, in power generation, transmission and distribution and the existing low tariffs.

"Over 90 per cent of the power generation, transmission and distribution facilities in Zambia are owned by Zesco, making it difficult for new companies to compete with the state utility," explains Duma. "Moreover, existing tariffs in the Zambian power industry are sub-economical, motivating efforts to develop tariffs which are cost reflective and attractive for IPPs."

Power generation is a high-capital cost activity. Therefore, IPPs need an assurance that their investment in the Zambian power industry will yield positive returns.

The government's immediate focus should be on improving the level of tariffs to attract investment from both local and international companies. Moreover, private companies should consider strategic private-public partnerships with Zesco to develop new power plants and investigate ways to leverage the potential export market in the Southern African power pool.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the Strategic Analysis of the Zambian Electricity Industry, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com with your full name, company name, title, telephone number and email address. Upon receipt of the above information, an overview will be sent to you by email.

Strategic Analysis of the Zambian Electricity Industry is part of the Energy & Power Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of the Nigerian Electricity Industry, Asian Power Plant Markets, Country Industry Forecast: The German Energy Industry, SADC Transmission and Distribution Equipment Markets and Africa Steam and Gas Turbine Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

About Frost & Sullivan
Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

 
 
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Zambian Power Industry Set to Expand to Meet Rising Demand

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Publisher Contact: Patrick Cairns 
+27 21 680 3274 patrick.cairns[.]frost.com
 
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