Energy over view Z .pdf



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OVERVIEW OF RENEWABLE ENERGY
DEVELOPMENT IN ZAMBIA
BY
Mr. Anorld.M. Simwaba
Acting Director
DEPARTMENT OF ENERGY

PRESENTATION OUTLINE
´Energy Sector Overview
´ Policy Environment and Investment Climate
´ Incentives

´ Electricity Sector
´Renewable Energy Sector
´ Key RE Programs

´Challenges
´Conclusion

POLICY MEASURES SUPPORTING
RENEWABLE ENERGY

Policy Environment

´Anchored on Vision 2030 and 7NDP (2017 – 21)
´MOE adopted National Energy Policy (NEP) 2019
´Electricity Act No. 11 of 2019 and Energy
Regulation Act No 12 of 2019
´REFiT Strategy 2017
´Rural Electrification Act
´Mini-grid regulatory framework also developed to
support off-grid initiatives

POLICY MEASURES SUPPORTING
RENEWABLE ENERGY

Investment Climate

´ Energy sector now recognised as Priority sector by ZDA (special
incentives)
´ ZDA offers financial and fiscal incentives (to both domestic and
foreign investors) in order to attract investment.
´ Tax exemptions on importation of RE Products also available
through SI 32 & 33
´ OPPPI: Special Unit under MOE manages the Framework and
Package of Incentives (FPI) for power generation and
transmission development

Overview of Electricity Sector
Generation

2,981 MW

Total installed capacity

80%

large hydro
Installed Capacity by source
[CATEGO
RY NAME]
[VALUE]
[CATEGO
RY NAME]
[[VALUE]

[CATEGO
RY NAME] [CATEGO
[[VALUE] RY NAME]
[[VALUE]

[CATEGO
RY NAME]
[[VALUE]

Consumption
[CATEGOR
Y NAME]
Services
[PERCENT
CommerceAGE]
& Industry
7%

Household
s
30%

Access
Agricultur
e&
Forestry
2%

Mining
55%

• Over 50% electricity is
consumed by mining sector
• Household sector accounts
for 30%
• Deficit: 810 MW

31.2%

National

67.7%

Urban

4.4%

Rural

5%

Annual Demand
Growth

Renewable Energy Context
Solar





6-8hrs/day, energy output of 5.5kwh/m2/day
Solar resource measurement completed in 2017
Targeting on-grid 200 MW – Get Fit (supported by REFIT Strategy) and
600 MW - Scaling Solar Program

Wind




Average speed 7 - 8.2 m/s at 80 meter height
2 year wind resource assessment completed in December 2018




80 hot springs available in Zambia
Studies by one IPP shows 15MW to 90MW potential In Southern
Province (Lochniver Park)

Mini-hydro





Installed capacity of 39.55 MW
Potential of additional 38.6 MW
0.64 MW under construction by REA

Biomass




Study done by IRENA in 2013 indicates 500 MW potential
Biomass and Food Security Assessment underway

Geothermal

KEY RE PROGRAMMES
´ Renewable Energy Resource Map: indicating country’s solar and wind
resource potential to guide investments on suitable locations
´ Scaling Solar Program: Developed (84 MW) Solar PV in MFEZ
´ GEFIT Program: aims at leveraging the tariffs for RE Generation.
Currently implementing 120MW solar and 100MW mini hydro.
´ ESAP Project: aims to increase access to electricity
´ IAEREP Project: Improve Policy, legal and Regulatory environment
including Capacity Building, demonstration Projects for Renewable
Energy and Energy Efficiency.
´ Cost of Service Study: to inform tariff determination

RE Sector Challenges
´ Lack of finances to package bankable Project Feasibility Studies
´ High Cost of Capital
´ Non-Cost reflective tariffs
´ Creditworthiness of off taker
´ Affordability issues for off-grid projects given scattered settlements
´ Inadequate human resource capacity in renewable energy
technologies

CONCLUSION
´ The renewable energy future is bright as all the necessary
support for clean energy is available.
´ The policy framework in Zambia supports renewable
energy though there is need for more work to be done.
´ The continuous reduction in the price of solar products per
KW gives a good sign of the future for Renewable Energy.
´ Government is encourage investment through IPPs and
PPPs.
´ MOE to continue with its mandate on policy as well as
project coordination and implementation

THANK YOU FOR YOUR
ATTENTION


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