• Zambia’s REA launched the $637,000 Lui Grid Extension Project on July 17 to connect 600 users in Western Province.

• The project highlights the cost gap with private solar mini-grids, which are cheaper and faster to deploy.

• Critics argue continued focus on public grid extensions may hinder more scalable off-grid solutions amid low rural access.
  

Zambia's latest power grid extension project, led by the Rural Electrification Authority (REA), has reignited a debate over institutional choices in energy access. On Thursday, July 17, the REA officially launched the "Lui Grid Extension Project" in the Western Province, designed to connect about 600 beneficiaries, including schools and health centers.

The project includes 25 kilometers of high-voltage lines (33 kV) and 11.5 kilometers of low-voltage lines (400 V), with a public budget of 14.9 million kwacha, or about $637,000.

This centralized model continues to dominate, even as more agile alternatives are emerging. In June 2025, for example, private-sector companies signed agreements to build 43 solar mini-grids intended to electrify up to 100,000 people in similar rural communities.

These projects were launched under the Zambia Energy Access Scale-up (ZEDSI) program, supported by the World Bank, the Rockefeller Foundation, and Power Africa. They aim to lower the cost per connection and reduce rollout times, often to under 12 months.

The cost per connection for the Lui project is approximately $1,060, while solar mini-grids cost between $286 and $500, according to the World Bank's electrification plan. While this gap can be partly explained by the nature of the infrastructure, it highlights the cost differences between public and decentralized approaches in sparsely populated areas.

As the government targets universal electricity access by 2030, its continued focus on public grid extensions risks sidelining more flexible private initiatives that are already operational.

In 2023, only 53.6% of Zambia's population had electricity access, with just 34.9% in rural areas compared to 80.3% in urban zones, according to the National Energy Compact. This disparity underscores the importance of scaling up off-grid solutions where needs remain most pressing.

Abdel-Latif Boureima