In mid-2024, the Minister of Energy promulgated the Electricity (Net Metering) Regulations, 2024 (the “Regulations”). The Regulations aim to address the Country’s urgent electricity deficit by introducing net metering and establishing a net metering framework in Zambia for the first time.
Net metering is an electricity generating system where customers connected to the national power grid can off-set the excess electricity they generate by feeding it back into the grid. Customers who participate in this program are known as “prosumers.”
Salient Features of the Regulations
- Who is eligible to participate in net metering?
Any individual or business, with an off-grid power solution, and the legal capacity to purchase electricity as a consumer qualifies to apply for prosumer status. It is important to note that prosumers are subject to scrutiny by a relevant distribution enterprise (i.e., an entity responsible for connecting prosumers to the National Grid e.g., ZESCO). Applications must be submitted to a distribution enterprise within the applicant’s geographical area, adhering to the requisite application criteria set out in the Regulations (including minimum energy requirements).
- Monitoring, Operation and Control of Net Metering Generation
Distribution enterprises are responsible for the connection, operation and control of net metering power generation. They are required to supply and install the necessary distribution systems to feed excess electricity generated by prosumers into the national power grid. Additionally, the enterprises are also responsible for maintaining registers of rejected applications,, generation capacity and cancelled or withdrawn net metering generation capacities.
On the other hand, prosumers are responsible for frequently inspecting net metering generation stations to guarantee their efficient operation and performance. Prosumers are also expected to allow distribution enterprises access to the net metering meters for servicing and reading and to report their metering data to the enterprise under which they practice net metering..
- Billing and Tariffs
The Energy Regulation Board will determine tariffs annually. These tariffs will be the quantum upon which the value of prosumer’s electricity imports and exports are calculated. The prosumer will enjoy the option to use the value of the energy they export or send to the grid, to reduce their current or future electricity bills.
Conclusion
The introduction of net metering is a welcome advancement corresponding with the Government’s stated commitment to increasing electricity availability and promoting renewable energy.
