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

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!