RENEWABLE ENERGY DEPLOYMENT
IN
ZAMBIA
A Presentation made at the Match Making Workshop held at
Yulong International Hotel on
14th October 2016
MINISTRY OF ENERGY AND WATER DEVELOPMENT
PRESENTATION OUTLINE
Overview of the Energy Sector
Policy Measures on Renewable Energy
Deployment
Policy Measures on Demand Side
Management
MiniHydro Development
OVERVIEW OF ENERGY SECTOR
 Major source of energy in Zambia is wood fuel (i.e. firewood
and charcoal), with the largest consumer group being
households in both rural and urban areas;
 Electricity installed capacity is 2,591MW
 91% large hydro, 7.7% thermal (Coal, HFO and Diesel) and
1.7% renewable comprising of small hydros
 “Renewable hydro” = up to 20 MW
 31.4% of population have access to electricity (Urban 67.3% &
Rural 4.4%)
 Solar
potential:
5.5kwh/m2/day
6-8
hrs/day,
with
energy
output
of
Power situation in Zambia
Generating Station
Victoria Falls
Kafue Gorge
Kariba Complex (i.e. Kariba North
Bank and Kariba Extensin Project)
Itezhi-Tezhi
Small Hydros
Lunzua Hydro
Lunsemfwa
Ndola Energy
Maamba Coal Plant
Total
At peak
Off Peak
Deficit (2,019-1,479.3)
Current Capacity (MW)
101
650
427
80
19
4.5
14.8
44
139
1,479.3
National Power Demand (MW)
2,019
1,900
540
Installed Capacity
(MW)
108
990
1080
120
24
14.8
56
50
150
2,593
…Cont
Reduced generation Capacity attributed to:
low rainfall experienced during 2014/2015 and
2015/16 season
Leading to low water levels in the two main station of
Kariba & Itezhi-Tezhi Dams
To preserve the water levels:
ZRA Allocated 20 Billion cubic meters of water
(shared between ZESCO and ZPC) in 2016 compared
to 40 billion in 2015
For 2017, ZRA has allocated 30 billion cubic meters
Mitigation Measures
Importation of Emergence power
Migration to cost reflective tariffs
 MEWD/ERB & ZESCO working on gradual migration plan.
 1st tariff adjustment expected by 4th Quarter 2016
 2nd tariff adjustment expected by mid 2017
 Subsequent adjustments to be informed by Cost of Service Study
 35th Meeting of SADC Ministers responsible for Energy held in Botswana on 20th
June 2016 reaffirmed earlier decision of 34th Meeting held in South Africa on
24th July, 2015 for all SADC countries to ensure cost reflective electricity tariffs
by 31st December, 2019.
OVERVIEW OF ENERGY SECTOR
(CONT…)
CURRENT ENERGY SECTOR POLICY AND LEGAL FRAMEWORK
 The National Energy Policy of 2008 is the overall guide for
developments in the energy sector
 The NEP 2008 sets out Government’s intensions aimed at ensuring
that the energy sector’s potential to drive economic growth and
reduce poverty is harnessed
Vision:
 To provide well developed, managed, reliable and sustainable energy
resources for the improvement of the quality of life of all Zambians
Guiding Principles:
 Development of appropriate energy technologies and resource to
enhance development
CURRENT ENERGY SECTOR POLICY AND
LEGAS FRAMEWORK cont…
The Energy Sector is governed by the following
legal and institutional frameworks;
Electricity
Act,
Energy
Regulation
Act,
Rural
Electrification Act, Petroleum Act, Petroleum Production
and Exploration Act
 From the various Acts was developed the:
 Power System Development Master Plan - increase power generation and
transmission facilities in the country
 Rural Electrification Master Plan - to increase electrification access in rural areas
POLICY MEASURES ON RENEWABLE ENERGY
DEPLOYMENT
Policy and project development
REFIT strategy - GRZ with the help of SATH and USAID has
developed a Renewable Energy Feed-in Tariff strategy
(REFiT) to promote investments in Renewable Energy
development.
REFIT strategy aims at implementing a total of 200 MW from
renewable energy in the next 3 years
100 MW from hydro – up to 20 MW
100 MW from non hydro of which 50 MW would be solar
POLICY MEASURES ON RENEWABLE ENERGY
DEPLOYMENT
(CONT…)
 Under REFiT strategy standardized projects development
documents have been developed e.g PPA, Connection
Agreement, Connection Guidelines and Implementation
Agreement.
 REFiT strategy is expected to be adopted by end of 2016
GETFiT Programme
 Based on REFIT policy, GRZ with the assistance of KFW (Germany
Development Bank) is working on the development of the
Global Energy Transfer Feed-in Tariff (GET FiT) mechanism, to
leverage tariffs for projects to be developed under the REFiT
strategy
POLICY MEASURES ON RENEWABLE ENERGY
DEPLOYMENT
(CONT…)
 The Government is development On-grid Solar Power Projects, with a total
of 300 MW:
 Allocation of 250 MW under the Scaling Up Solar Programme by the IDC, with the support of the World
Bank Group; (development of 2x50 MW solar plants underway)
 Allocation of 50 MW under the GetFit Zambia Programme with the assistance of the Germany
Government

Studies underway to assess RE absorption in the Grid (ZESCO with support of Power Africa)
 Government is Promoting Off-Grid RE projects (viable option to increase Access).
China- Zambia South to South Cooperation of Renewable Energy Technology
Transfer
 With the assistance of Danish Government, UNDP China and UNDP Zambia are providing
technical support for the creation of an enabling environment for renewable energy
deployment by removing market barriers.
POLICY MEASURES ON RENEWABLE ENERGY
DEPLOYMENT(CONT…)
SE4ALL Initiative
Aimed at increasing share of RE in the country
Country Action Agenda & Investment Prospectus underway
Renewable Energy Resource Map
 GRZ with support from World Bank is developing a resource map
indicating the country’s solar and wind resource potential to guide
investments on suitable locations
POLICY MEASURES ON RENEWABLE ENERGY
DEPLOYMENT (CONT…)
Revision of Electricity and Energy Regulation Acts
 Reviews of Electricity and Energy Regulation Acts are on-going to take
account of emerging issues in the energy sector
Scaling Up Renewable Energy Program for Low Income Countries (SREP)
 US$40 million available for Zambia to assist private sector
power project financing
 US$18 million-Grant & US$22 million-Concessional loans
 Preparation of Investment plan underway
POLICY MEASURES ON RENEWABLE ENERGY
DEPLOYMENT (CONT…)
EU – Technical Assistance Facility
Under the EU Technical Assistance Facility the
following projects are being implemented:
Energy Efficiency Quick Wins Actions; investments in both
public and private sectors;
Long Term Renewable Energy Targets:
Guidance manual for prospective IPPs and review or REA
mandate
POLICY MEASURES ON DEMAND SIDE
MANAGMENT
DEMAND SIDE MANAGEMENT
 Tax waivers have been introduced on importation of energy
efficient equipment including solar accessories, through SI No.
32 & 33 of 2008
 GRZ is in the process of banning the Importation and local
manufacturing of incandescent bulbs through an SI.
 An allowance will be given for the traders to clear the old stock
 Energy saving awareness campaigns, e.g. commemoration of
annual energy Week.
 MEWD and ZESCO limited are currently working on a process
to procure LEDs for free distribution across the country. with a
view to save about 200MW.
MEASURES ON HYDRO DEVELOPMENT
Identification of Small Hydro Sites
 GRZ and ZESCO are currently undertaking a country wide identification exercise
of small hydropower sites for exploitation.
 So far indication of a huge potential: many potential sites have been discovered
in the Northern, Central and North Western Region.
ZESCO Uprating Small Hydro Power Plants
 ZESCO is currently undertaking a programme of uprating and rehabilitating it’s
already existing small power projects;
 Lusiwasi (12MW to 86MW)
 Chishimba Falls (6MW to 14.5MW)
 Musonda Falls (5MW to 10MW)
OPPORTUNITIES IN RENEWABLE ENERGY
SUB- SECTOR
Low level of electrification rate -31.4%
Rural 4.4%.
Urban 67.3%.
Abundant Resources
Solar:6-8hrs./day, with energy output of 5.5kwh/m2/day
Abundant potential Mini-hydro sites
Biomass – 498MW (Irena Report 2014)
Geothermal – 80 Hot Springs available for exploration
On going Resource Map for wind and Solar, indicates
wind speeds of above in parts of the country.
OPPORTUNITIES IN RENEWABLE ENERGY
SUB- SECTOR
Enabling environment for private sector investment
Reviewing of policies and Legislation
Number of initiatives being implemented : South to South
technology transfer, Target setting , S4ALL, etc.
Fiscal Incentives
 Tax waivers introduced on importation of energy efficient
equipment including Solar equipment through SI No. 32 & 33 of 2008
 ZDA provides for incentives for electricity generated from
Renewable Energy (Section 56 ZDA Act).
SI No. 15 of 2011 – Power Stations and Generation of Power
(Section 56 ZDA Act).
Tax exemptions on solar equipment and other equipment for
generation of power from renewable energy.
Section 57 ZDA Act Provides for Duty Exemption for Machinery
and Equipment for Enterprises Investing in Rural Areas.
CONCLUSION
Government is undertaking consented efforts to
diversify the power sector to include renewable
energy by ensuring that appropriate policies and
legal frameworks are in place. To achieve this the
Private Sector and the Cooperating part will play a
very critical role.
THANK YOU FOR YOUR
ATTENTION
CHINA-ZAMBIA SOUTH-SOUTH
COOPERATION ON RENEWABLE ENERGY
TECHNOLOGY TRANSFER PROJECT
Project Update
Dr. Lloyd Ngo – Project Manager
Presentation Outline
• Project General Overview
• Project Objectives
• Project Outcomes
• Planned activities and Progress –2016
• Challenges and lessons learnt
• Partnerships
• Planned activities for 3rd and 4th Quarters 2016
Key actions planned for the next [two weeks]
Legend: On Schedule
Delayed
Project General Overview
• This is a 4-year (Started 2015) project that aims to support
the access to electricity for rural communities in Zambia.
• It will do so through the creation of an enabling
environment for renewable energy technology deployment
by removing market barriers.
Key actions planned for the next [two weeks]
• And through the strengthening of
Cooperation between Zambia and China.
Legend: On Schedule
Delayed
South-South
Project General Overview
• The project is being implemented by:
• Ministry of Energy and Water Development - DoE,
Zambia
• Ministry of Science and Technology, China.
Key actions planned for the next [two weeks]
• UNDP China and UNDP Zambia are providing substantial
implementation, procurement and administration support
and technical expertise
• The project is funded by the Danish Government
• Budget: USD 2,624,400
Legend: On Schedule
Delayed
Project Objectives
• The project’s overall objective is: To improve energy
access and living conditions in rural Zambia through
South-South Cooperation.
Key actions planned for the next [two weeks]
• The project has two specific objectives:
• To promote electrification of rural communities in
Zambia.
• To strengthen China’s capacity for South-South
Cooperation
Legend: On Schedule
Delayed
Outcomes
Key actions planned for the next [two weeks]
Legend: On Schedule
Delayed
Planned activities and Progress 2016
Activity
Status:
Status
Key actions planned for the next [two weeks]
Progress and Comments
• Second Draft was submitted and reviewed by DoE. To be submitted to ACCA21 for
comments
• This activity is delayed starting from lengthy recruitment process and also delays by the
consultant
• Final draft to be ready end of 3rd Quarter
• Activity 1.1.1 is dependent on the completion of the first activity
Legend: On Schedule
Delayed
Project Work Plan and Progress 2016
Activity
Status:
Comments
Key actions planned for the next [two weeks]
Progress and Comments
•
•
•
•
EIZ and ERB have been approached to host this online forum on their websites
Two senior staff members from University of Zambia were trained in China
Two MoUs were negotiated with ISEC and Poly Solar with UNZA but yet to be signed
Rural health centre to used for demonstration of energy by UNZA has been selected in Chongwe
district (Initial load assessment has been done). In addition,
• Terms of reference for the procurement of equipment and services to be published by ACCA21.This
activity has limited funding. Department of Physics has been allocated land
• With regard to training UNZA will focus on training Trainers of Trainers
Legend: On Schedule
Delayed
Activity
Status:
Katoba Health Centre
Key actions planned for the next [two weeks]
Details
•
•
•
•
•
Located 50 Km from Lusaka city on Leopards Hill road.
The facility has two buildings with 10 rooms in total.
3 staff houses (4 rooms each)
There is an admission ward and labour ward.
This facility provides service to about 11,000 people.
Legend: On Schedule
Delayed
Project Work Plan and Progress 2016
Activity
Status:
Status
Progress and Comments
Key actions planned for the next [two weeks]
• Two on-site capacity building workshops have been conducted with 16 key stakeholders
trained
• Initial 8 potential sites were proposed by ZESCO
• An initial assessment was done to reduce the sites to 3
• Chipota Falls was selected as the most suitable site
• Detailed survey has been done for Chipota Falls
• Feasibility report expected in September 2016
Legend: On Schedule
Delayed
Site Selection Consideration
Details
• The following were considered for site selection
• Estimated potential – From head and flow rate
• Availability and distance of the load centre
• Rough cost estimate
• Environmental issuesKey actions planned for the next [two weeks]
• Chilambwe Falls was ranked highly but was eliminated since it a
heritage site
• Chipota Falls was ranked 2nd as suitable site
• Nyinaluzi was ranked 3rd due to the cost as it would require
damming
Legend: On Schedule
Delayed
Potential Sites: Nyinaluzi
Activity
Status:
Key actions planned for the next [two weeks]
Details
•
•
•
•
•
Located in Chief Mpande’s area in Mbala with estimated population of 20,000
The site is accessible by road up to the Falls.
There is rural health centre and school about 3 km from the Falls.
There is also a mission school, health centre and church about 20 Km from the site.
Estimated potential - 200 kW
Legend: On Schedule
Delayed
Potential Sites: Chilambwe Falls
Activity
Status:
Key actions planned for the next [two weeks]
Details
• Located 75 Km from Kasama, Chalambwa Falls is under the National Heritage
• The nearest growth centre is about 2.5 Km from the site
• Estimated potential of 1 MW
Legend: On Schedule
Delayed
Potential Sites: Chipota Falls
Activity
Status:
Key actions planned for the next [two weeks]
Details
•
•
•
•
The falls is about 14 Km from the nearest growth Centre in Chief Kabamba’s area
Estimated population of 15,000 people. The School with an estimated 900 pupils
Health centre are located about 3 Km from the Great North Road.
Estimated potential of about 300 kW.
Legend: On Schedule
Delayed
Project Work Plan and Progress 2016
Time schedule for feasibility Study
Key actions planned for the next [two weeks]
Legend: On Schedule
Delayed
Activity
Status:
Project Work Plan and Progress 2016
Activity
Status:
Activity 2.1.1
Output 4.2
• Project
Coordination
established
Structures • Create project coordination
management structure
and
•Key achievements in the last [week]
•
Status
[Detail the key achievements in the last period]
• Global Steering Committee Meeting was held in January in Beijing China
Key actions planned for the next [two weeks]
• PSC meeting was held in August
2016
• Coordination meetings are held every fortnightly with UNDP China and ACCA21
Comments
• Communication has been a challenge between IPs since Skype has been unreliable
• Telephone line has been installed for easy communication with a possibility of using the
line for teleconferencing
Legend: On Schedule
Delayed
Project Work Plan and Progress 2016
Challenges lessons learnt
• Limited budget on key outputs
•Key achievements
in the
[week]and construction of the transmission lines
• No budget
forlast
survey
• [Detail the key achievements in the last period]
• No budget for access road
• Limited budget for Environmental Impact Assessment
Key actions planned for the next [two weeks]
• Discuss with Rural Electrification Authority and ZESCO to
fund this activity
• Ownership of the power plant
• KGRTC has expressed interest to operate the power plant
• Need for professional interpreters during training as some key
Chinese experts have limited knowledge of English.
• On-site training is better conducted in smaller groups
Legend: On Schedule
Delayed
Partnerships/Networking
•Key achievements in the last [week]
•
[Detail the key achievements in the last period]
Key actions planned for the next [two weeks]
Legend: On Schedule
Delayed
Planned activities for 3rd and 4th Quarters
•Key achievements in the last [week]
•
[Detail the key achievements in the last period]
Key actions planned for the next [two weeks]
Legend: On Schedule
Delayed
Thank You