Abstract
ZESCO Limited is a power utility company established through the Zambia Electricity Supply Act of 1970. Its primary objective is to generate, distribute, transmit, and supply electricity across all parts of Zambia. However, there has been an increased demand for electricity in Zambia due to the dire need to increase rural electrification, accounting for only 11% of the total connection. The low rainfall experienced in Zambia has worsened the problem because 85% of the electricity is hydro-powered. Consequently, ZESCO focuses on investing in renewable energy to address the deficiency. The increase in electricity connection through green energy will spur economic development in rural areas. Renewable energy will also help conserve the environment by limiting the carbon footprint released into the atmosphere.
Introduction
In the contemporary world, electricity is a significant driver towards transforming global economies. According to Yang and Yang (2018), power energy boosts the economic development momentum by expanding job opportunities, lowering the cost of production, increasing working hours, and strengthening access to online resources and information. In this regard, ZESCO Limited, the Zambian power utility company, has an obligation to generate and supply the electricity in the country. Despite its commitment to fulfilling its mandate, the company has experienced challenges in meeting electricity demand across the nation. There has been low rainfall, which reduced power production because most generating units are hydro-powered. In return, ZESCO Limited has concentrated on assessing alternative power sources to enhance its generation capacity. Therefore, this paper focuses on examining the firm’s decision-making process in adopting renewable energy to address the electricity shortage and promote rural developments in Zambia.
Brief Background and the Issue Relating to ZESCO Limited
The parliament established ZESCO Limited under the Zambia Electricity Supply Act in 1970. It provides reliable and safe electricity to facilitate the improvement of the quality of life of all residents in Zambia. The firm’s primary goal is to expand electricity connections in rural areas to boost economic growth among local communities. However, the reduced rainfall has lessened the electricity production required to meet the citizens’ demands. ZESCO has embraced raft measures to increase power supply, including rekindling its relationship with Copperbelt Energy Corporation (CEC) Plc and investing in renewable energy such as wind and solar power (ZESCO Limited, n.d.). The company’s administrators perceive these strategies as practical and efficient due to the efficiency of green energy in conserving the environment and increasing electricity generation.
Decision-Making Process
Factors
ZESCO Limited considered various factors such as risk and uncertainty, sufficiency, and environmental impact in selecting renewable energy as an alternative power source. Currently, the company has a strategic plan to generate approximately 1025 Megawatts (MW) from solar and wind energy in several plants, including Kariba, Kafue, and Muzuma, among other projects (ZESCO Limited, n.d.). ZESCO mainly targets solar power due to its availability, although wind power also offers a practical alternative, especially during winter. The anticipated 1025 MW from green energy will be sufficient to boost the power supply countrywide (Stritzke & Jain, 2021). There is also the likelihood of increasing this generation capacity with continuous investment. Wind and solar energy also lessen the uncertainties and risk of electricity blackouts due to their availability and, most importantly, their ability to conserve the environment and reduce carbon footprint.
Model
The most appropriate decision-making model based on the current situation in Zambia is the classical approach. According to Prasad (2020), the classical model refers to a prescriptive technique that defines how administrators make decisions considering economic assumptions. With this method, ZESCO will gather all critical information about electricity demand and supply in Zambia, thus using facts in examining various alternatives and their potential benefits. The model aims to maximize rewards, thus aligning with ZESCO’s primary objective of expanding power generation in a safe and reliable environment.
Style
A directive decision-making style is the best fit for the Zambian situation. ZESCO Limited is a company established under the Act of the parliament, and thus, observes specific operational rules and regulations. This style promotes authority and dislikes ambiguity to ensure the managers remain result-oriented (Bazerman & Moore, 2013). In a structured sector such as energy, ZESCO’s board and top executives need to embrace a directive decision-making style to offer guidance to the subordinates and help them work intensely towards attaining set goals. The most significant merit of this approach is that it guarantees a fast and efficient decision-making process in highly structured firms such as ZESCO Limited.
Pitfalls
ZESCO administrators should avoid various mental shortcut pitfalls such as overconfidence, rush-to-solve, and availability biases. For instance, the company may fail to have appropriate information reflecting Zambia’s weather conditions and electricity demand, thus relying on accessible data. This event may result in availability bias that may encourage the use of subjective data, leading to irrational decisions. Overconfidence is also a common trait of top executives, especially in governmental corporations (Prasad, 2020). It can lead to preconceptions that create overconfidence bias, resulting in unscientific choices. Lastly, rush-to-solve may compel leaders to ignore some alternatives, thus making biased decisions.
Plan
The strategic plan explores several steps toward attaining the ultimate goal of shifting to renewable energy as an alternative power source in Zambia. The first stage is identifying the problem and examining the factors causing it. ZESCO leaders will proceed to generate an alternative course of action to mitigate the challenge. It will also be essential to appraise the available alternatives to determine their productivity and efficiency. Subsequently, the company will select the best solution and implement it according to its organizational culture and mission. In the implementation process, the firm will regularly evaluate the solution to measure its success rate and recommend the necessary modifications.
Impact of Renewable Energy on the Power Mix and Rural Communities
Renewable energy, mainly solar and wind power, will help strengthen electricity generation in Zambia. Presently, 85% of the electricity is hydro-powered, thus causing significant disruption due to reduced rainfall (ZESCO Limited, n.d.). Incorporating green energy into the power mix will help address acute shortages experienced during the summer. The solar and wind power projects anticipated to be completed in Zambia account for nearly 40% of total electricity generation. With this increase, ZESCO will strengthen its rural electricity connection, which currently stands at 11%. According to Yang and Yang (2018), rural electrification boosts the local economy by encouraging long working hours and opening new job opportunities that necessitate electricity in their operations. Significantly, the country will make tremendous steps in ensuring environmental sustainability in line with the seventh Millennium Development Goal (MDG). Green energy also conserves the environment by reducing reliance on petroleum products to generate electricity, thus lessening the carbon footprint in the atmosphere.
Conclusion
ZESCO Limited is a company mandated under the Act of Parliament to generate, distribute, and supply electricity across Zambia. Despite its commitment to the assigned role, the erratic rainfall has caused a reduction in electricity generation, which depends mainly on hydropower. The firm has embraced renewable energy as an alternative electricity source. This choice is practical and rational based on already scheduled solar and wind power projects that will generate about 1025 MW. ZESCO Limited needs to gather extensive scientific data to inform more investment in Green energy. It has proved an alternative solution in many global countries such as China, Germany, and South Africa.
References
Bazerman, M. H., & Moore, D. A. (2013). Judgment in managerial decision making (8th ed.). Hoboken, NJ: John Wiley & Sons.
Prasad, L. M. (2020). Principles and practice of management. Delhi, India: Sultan Chand & Sons.
Stritzke, S., & Jain, P. (2021). The sustainability of decentralised renewable energy projects in developing countries: Learning lessons from Zambia. Energies, 14(13), 3757.
Yang, F., & Yang, M. (2018). Rural electrification in sub-Saharan Africa with innovative energy policy and new financing models. Mitigation and Adaptation Strategies for Global Change, 23(6), 933-952.
ZESCO Limited. (n.d.). ZESCO – Powering the nation and the region. Web.