Zambia’s state-owned power company, ZESCO Limited, risks a penalty of around US$5 million by the end of 2025 after reportedly exceeding its permitted water usage for hydropower generation at the Kariba Dam.
According to the Zambezi River Authority (ZRA), ZESCO’s current rate of water consumption suggests it may surpass its annual allocation by 4.7 billion cubic metres. The excess use would automatically trigger a fine estimated at US$5.1 million.
ZESCO and the Zimbabwe Power Company (ZPC) were each allotted 14 billion cubic metres, making up a combined 28 billion cubic metres of water for power production during the 2025 calendar year.
The ZRA noted that even a lower overuse level of about 2 billion cubic metres could still attract penalties of roughly US$3.9 million, though this scenario would leave a small water reserve of 1.6 billion cubic metres for the following year.
The Zambezi River Authority, jointly managed by the governments of Zambia and Zimbabwe, oversees the Kariba Dam complex and the shared water resources of the Zambezi River.
Kariba Dam serves two major hydropower plants — Kariba North Bank Power Station in Zambia, operated by ZESCO with an installed capacity of 1,080 megawatts (MW), and Kariba South Bank Power Station in Zimbabwe, operated by ZPC with a capacity of 1,050 MW.
