EU AMB Speech (Speaking points for JJ openings French RE event 27 Oct 2020) .pdf


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Speaking  points  for  JJ  opening  27/10/2020  –  French  
Event  on  REs  
 
Your  Excellency  Mathew  Nkhuwa,  Minister  of  Energy,  
Your   Excellency   Sylvain   Berger,   the   Ambassador   of  
France,  
Government   Officials,   Representatives   of   the   Press,  
Ladies  and  Gentlemen,  All  protocol  observed!  
I  am  delighted  to  make  some  remarks  on  the  conference  
“Renewable  Energy  Event  in  Zambia”.  
Firstly,   I   would   like   to   thank   wholeheartedly   my   dear  
Friend,   the   French   Ambassador   and   his   team   for   the  
excellent  organisation  of  this  event.  
Your  Excellences,  ladies  and  gentlemen!  
The  EU  is  convinced  that  access  to  affordable,  reliable  and  
sustainable   energy   services   is   a   prerequisite   for   Africa’s  
economic  and  social  development  in  most  of  the  sectors;  
in   particular   health,   education,   industrialisation,  
digitalisation,   but   also   gender   equality,   jobs   creation,  
sustainable   transport,   sustainable   agricultural   growth,  

food   security,   environment,   climate,   clean   water   and  
sanitation.    
Fighting   energy   poverty   is   key   to   address   territorial,  
economic  and  social  inequalities  and  to  contribute  to  our  
overall   objective   of   poverty   eradication   and   inclusive  
sustainable  development.  
Due   to   the   lack   of   affordability,   the   majority   of   the  
Zambian  population  has  been  limiting  from  the  access  to  
clean   renewable   energy.   This   is   why,   energy   has   been   a  
focal   sector   under   the   Zambian   National   Indicative  
Programme   (NIP)   of   the   11th   EDF   (MPF   2014-­‐2020);   an  
envelope   of   €   244   million   was   earmarked   (over   50%   of  
the  overall  budget  of  the  NIP).  I  am  proud  to  say  that  this  
amount  has  been  now  fully  committed  to  projects.  
But   reaching   Zambia’s   widespread   communities   with   the  
energy   access   will   require   a   substantial   investment   in  
distribution   networks,   in   addition   to   generation   and  
transmission  capacity.  
Your  Excellences,  ladies  and  gentlemen!  
In   the   latest   EU   global   priorities,   the   “Green   Deal”  
represents   a   fundamental   pillar   to   address   not   only  
climate   and   environmental   global   priorities,   but   also  

economic  and  social  ones,  also  following  the  severe  global  
crisis  due  to  the  Covid-­‐19  pandemic.  
The   “Green   Deal”   strengthens   the   already   existing  
involvement   of   the   EU   in   the   use   of   renewable   energy   for  
a  smooth  but  constant  transition  towards  clean  energy.  
Zambia   has   had   a   long   history   with   renewable   energy   as  
its   electricity   generation   has   been   dominated   by   the  
large-­‐scale   hydro   since   the   1960s.   The   Kariba   Dam,   at  
present   under   an   important   rehabilitation   project,   with  
the  financing  of  the  EU,  the  WB  and  the  AfDB,  represents  
the  first  and  most  important  of  those  projects.  
Hydro-­‐electricity   contributes   about   86%   of   the   total  
electricity   generated   in   the   country.   Share   of   renewable  
energy   generation   is   growing   but   not   fast   enough   to  
mitigate   risks   of   dependency   on   one   energy   source.  
Installed   solar   PV   capacity   grew   from   ZERO%   in   2017   to  
2.99%  in  the  overall  energy  balance  now.  
Your  Excellences,  ladies  and  gentlemen!  
Despite   a   huge   solar   energy   potential   (averaging   5.5  
kWh/m2/day),   penetration   of   solar   energy   technologies  
and   their   contribution   to   the   national   energy   mix   in  
Zambia  still  remains  low  due  to  various  barriers:  

1.
 Policy   and   regulatory   obstacles   remain   in  
place   to   leverage   the   much-­‐needed   private  
investment   to   harness   the   identified   renewable  
energy  potential.    
2.
Non-­‐cost   reflective   tariffs   and   limited  
incentives  to  invest  in  renewable  energy.    
3.
The   high   costs   of   capital   also   limit   local  
investors  who  could  venture  into  renewable  energy  
investment.    
4.
Lack   of   capacity   to   develop   bankable  
projects  that  can  attract  funding.    
5.
Innovative   financing   mechanisms   to   buy  
down  cost  of  capital  and  risks  needed  to  enable  the  
growth  of  renewable  energy  in  Zambia.    
Your  Excellences,  ladies  and  gentlemen!  
The   European   Union   (EU)   has   supported   Government   of  
Zambia   in   updating   its   “National   Energy   Policy-­‐2019”,  
which   promotes   cost   reflective   tariffs,   scaling   up   clean  
energy  technologies  and  energy  efficiency,  establishment  
of   an   open   and   non-­‐discriminatory   electricity  
transmission   access   regime,   and   increased   access   to  
energy  services  in  urban  and  rural  areas.    

The   Zambian   electricity   sector   is   undergoing   a  
transformation.   Recently   adopted   energy   policy   and  
legislation   support   growth   of   Independent   Power  
Producers   (IPPs)   and   open   access   to   the   grid.   To  
operationalise   the   provisions   of   the   new   laws,   there   is   a  
need   to   develop   a   variety   of   regulatory   instruments   for  
transmission  and  distribution.    
The  EU  is  assisting  the  Ministry  of  Energy  to  optimise  the  
licencing   processes,   still   a   fairly   complicated   exercise,  
and   research   a   feasibility   of   a   one-­‐stop   shop   for  
renewable  energy  developers.  
With   the   40   Million   Euro   initiative   EU/IAEREP   technical  
assistance,   a   mini-­‐grid   regulatory   framework   was  
developed   and   approved   by   the   Energy   Regulation   Board.  
It   helps   develop   the   conducive   environment   and   build  
capacity   for   investment   in   both   on-­‐grid   and   off-­‐grid  
renewable   energy   generation.   These   regulations   will  
enable   implementation   of   mini-­‐grids   and   energy  
efficiency   demonstration   projects,   with   grant   of   25  
Million   EURO   from   the   EU.   This   will   allow   development   of  
about   230   mini-­‐grids   with   total   installed   capacity   of  
8.5??????   MW   that   would   benefit   200,000   Zambian  
people.    

And   to   conclude,   the   EU   signed   last   week   a   25   M   EURO  
Financing   Agreement   for   the   implementation   of   the  
ZE2ST  programme,  helping  the  private  and  public  sectors  
access  to  financing  for  Energy  Efficiency.  
With   this   last   announcement,   I   close   here   my  
contribution,   and   I   wish   you   all   a   fruitful   and   successful  
event.    
Thank   you   very   much   for   your   attention.   Natasha   sana,  
zikomo  kwambiri!  
 


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