Currently, only 30% of the Zambian population has access to electricity. 80% of the total energy consumption is based on biomass (wood and charcoal). Zambia produces 99% of the electricity with hydropower. Among the other renewable energy sources which have shown potential for development is bio energy based on the cogeneration capacity of the sugar industry. Biodiesel production has also been started but mainly based on imported soya oil and to some extent on domestically cultivated Jatropha. Energy saving is considered as an important topic on the political agenda. Zambia developed its initial energy policy in 1994 and has published a revised Energy Policy for Zambia in 2008. Sweden and the World Bank have supported Zambia in recent years in rural electrification and in establishing the necessary legal and institutional framework for grid expansion. The development plans based on the Energy Policy 1994, and the succeeding policy in May 2008, have put more emphasis on grid hydro-electricity compared to other renewable energy technologies. These plans include the Poverty Reduction Strategy Paper (PRSP), Transitional National Development Plan (TNDP) (2002-2005), the Fifth National Development Plan (FNDP) (2006-2010), and the Sixth National Development Plan (2011-2015). The PRSP acknowledges the importance of harnessing renewable energy resources to meet the country’s energy needs. However, no investment strategy or targets for renewable energy technologies are defined in the PRSP and the main focus is on hydropower.