The European Union is involved in the energy sector in Zambia. The leading partners in this area are Japan, the World Bank, AfDB, EIB, AFD, KFW and Sweden.

So far, the financing instrument for funding energy projects has the ACP-EU Energy Facility, which was established in 2005 in order to support projects on increasing access to sustainable and affordable energy services for the poor living in rural and peri-urban areas in the African, Caribbean and Pacific countries.

Under the First Energy Facility, launched in 2005 with a total budget of €220 million, two projects were selected for Zambia for an amount of €20 million. Considering that 74 projects were co-financed worldwide by the first Energy Facility, Zambia received 17% of all funds. The selected projects aim at increasing access to electricity services mainly in rural areas and include one agreement with the World Bank and one with public entities (Ministry of Energy and Water Development, Rural Electrification Authority).

Zambian proposals have not been successful under the second Energy Facility, covering the period 2009-2013.

Energy has been identified as a focal sector for interventions under the 11th EDF and an allocation of 244 million EUR has been earmarked in the National Indicative Programme for Zambia for the period 2014-2020 to improve access to clean, reliable and affordable energy. Programmes to support the improvement of policies and regulatory frameworks, better performing energy institutions, the rehabilitation of existing energy production units, the expansion of distribution networks and the connection of low-income households as well as micro, small and medium sized enterprises are under preparation.

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