Who may innovate? Regulatory eligibility, incumbent structure and the innovation pathways of energy SMEs in Zambia

Authors

Keywords:

frugal innovation, radical innovation, energy SMEs, electricity market regulation, open access, clean cooking, Zambia, technological innovation systems

Abstract

Background. Zambia opened part of its electricity market on 19 July 2024 through the Electricity (Open Access) Regulations, Statutory Instrument No. 40 of 2024, which let generators, traders and large consumers use the network outside the single-buyer model. Regulation 5 sets the condition of entry at 1 MW. Work on innovation among energy enterprises in low-income countries has concentrated on what firms are able to do, and has paid less attention to what they are permitted to do.

Methods. This conceptual paper uses theory adaptation and typology construction. Sources were selected under four criteria: peer-reviewed modelling and regulator statistics for quantities, primary legal instruments for regulatory claims, official statistics for household energy, and donor reporting for illustration only. Four segments of the energy economy are compared, separated by incumbent identity, licensing regime and demand structure.

Results. The 1 MW threshold works as innovation policy that nobody has evaluated as such, because it places the radical pathway beyond the reach of every domestic small and medium enterprise in the sector. Pathway distribution across the four segments follows regulatory treatment and incumbent form more closely than firm capability. Grid-adjacent firms work almost entirely within the incremental pathway. Off-grid solar shows frugal activity by domestic firms and radical activity by capitalised foreign entrants. Clean cooking serves most national energy demand and shows the least activity, because it’s incumbent is an informal fuel priced below social cost.

Conclusions. Eligibility rules should be recognised as an integral component of innovation policy. Aggregation would admit small firms to participate without lowering the 1MW technical threshold.

Author Biography

  • Prof. Sikalumbi Dewin, Kafue Gorge Regional Training Centre

    Professor Dewin Arona Sikalumbi is an expert in Entrepreneurship and Innovation Ecosystem. He is an Associate Professor of Entrepreneurship, Innovation and Cooperative Development. He stands as a pioneering force in Zambian academia, distinguishing himself as an influential thought leader and expert in entrepreneurship education, cooperative development, business incubation and curriculum innovation. His visionary approach transcends traditional educational boundaries, focusing on empowering students with robust entrepreneurial capabilities and mindsets crucial for navigating contemporary economic landscapes. His innovative educational philosophy, deeply rooted in practical experience and theoretical knowledge, has revolutionized the way business education is approached in Zambia and surrounding regions. While working as Dean of the School of Business at Chalimbana University (2018-2022), Director of Research, Postgraduate Studies, Consultancy, and Innovation (2023-2024), and Director of Research, Consultancy, and Innovation at ZCAS University (2025 to date), Dr. Sikalumbi has created groundbreaking programs that effectively connect academic theory with practical application. His educational methodology prioritizes experiential learning, nurturing entrepreneurial mindsets and critical thinking skills among students. Through his leadership, he has established comprehensive frameworks for integrating entrepreneurship into various levels of education, from vocational training to higher education. His scholarly contributions have made a significant impact on education and communities. His publications, including notable books like "The Entrepreneurial Cooperative," “Harmonising Campus” and "Success in Research," have become valuable resources in education and co-operatives. His editorial works on publications like "Inclusive Education" and "Zambia at 60" have contributed significantly to shaping educational discourse in Zambia. His research encompasses diverse areas, from cooperatives and innovation to gender, poverty, strategic management, and rural development. Dr. Sikalumbi's professional engagement extends across multiple domains, serving as a trainer at the Institute of Directors Zambia, TEVETA, and as an examiner for key educational bodies. His involvement in numerous professional organizations, including ZICA, BUSTAZ, IoDZ, ECZ, TCZ, and ICA, reflects his dedication to comprehensive professional growth. For a decade now, he has led key research and educational committees, overseeing areas such as curriculum development, impactful research, policies, and quality assurance. Through various educational initiatives and mentorship programs, he continues to mold future business leaders, researchers, and entrepreneurs, creating a lasting impact on economic development and community growth throughout Zambia and Africa.

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Published

2026-10-02

Issue

Vol. 1 No. 1 (2026): Journal of Energy, Engineering and Sustainable Development

Section

Articles

How to Cite

Who may innovate? Regulatory eligibility, incumbent structure and the innovation pathways of energy SMEs in Zambia. (2026). Journal of Energy, Engineering and Sustainable Development, 1(1). https://research.kgrtc.org.zm/index.php/jeesd/article/view/3