energy policy and development in zambia
TRANSCRIPT
Theme: Energy Policy and Development in Zambia
Presentation by
Arnold Milner SimwabaAssistant Director - EPD
DEPARTMENT OF ENERGY
Venue: Radisson Blue Hotel, LusakaDate: 3rd June 2015
MINISTRY OF ENERGY AND WATER DEVELOPMENT
1. BACKGROUND Energy policy 1994 and 2008 Government policy on power generation and
transmission Guiding principles
2. GRID CODE3. RENEWABLE ENERGY FEED IN TARIFF
POLICY4. ENERGY EFFICIENCY
MINISTRY OF ENERGY AND WATER DEVELOPMENT
The first National Energy Policy (NEP) formulated in1994 sought to promote optimal supply and utilization of energy, especially indigenous energy forms, forsocio-economic development in a safe and healthenvironment
However, this policy did not address emerging cross-cutting issues such as the Environment, Gender HIV/AIDS pandemic, household energy, rural electrification and the role of biofuels in Zambia’s future energy mix and its impact on the Energy sector.
MINISTRY OF ENERGY AND WATER DEVELOPMENT
The NEP 2008 sets out the Government’s intentions in the energy sector that are aimed at ensuring that the sector’s potential to drive economic growth and reduce poverty is fully harnessed.
The policy therefore provides a guide to decision-makers, policy makers and development managers in government, private sector, Non-Government Organisations, civil society, on Government’s intended actions in the energy sector.
To increase electricity generation and transmission capacity for local and regional markets
Improve accessibility and service delivery to households, small & medium scale entrepreneurs (SMEs)
Improve accessibility and service delivery to agriculture, tourism, manufacturing, mining and other commercial activities
Development of appropriate energy technologies
Development of human resource for effectiveimplementation of energy programmes
Optimize energy efficiency at the production,transformation and enduser levels
Provide incentives to enhance the performance of the energy sector
Develop appropriate Regulations – GRID CODE
MINISTRY OF ENERGY AND WATER DEVELOPMENT
Resource mobilization for development ofthe energy sector;
Partnerships with the private sector, civilsociety and community participation ofZambian citizens in all aspects in the energyindustry
MINISTRY OF ENERGY AND WATER DEVELOPMENT
ZGC is a technical document and contains rules, guidelines for use of the grid network
Zambian Grid Code (ZGC) was launched on 31st October 2013
ZGC was also subjected to an independent review by international consultants
It stipulates the rights and obligations of grid users
There are 5 main Chapters
1. Governance
2. Network
3. Metering
4. System operation
5. Information Exchange
Governance Structure
Registration of Grid Code Participants
Amendment Procedure
Exemption Procedure
Complaint reporting, Dispute Resolution and appeal mechanism
Grid Code Compliance Audits
Application for transmission connections
Connection condition
TNSP Technical Design Requirement
Service Provider Protection Requirements
Nomenclature
TS planning and Development
Network maintenance
Responsibility for metering installations
Metering installation requirement
Data validation
confidentiality
Responsibility
Scheduling of generation and ancillary services
Emergency and contingency planning
Independent action by participants
Maintenance Coordination/outage planning
Communication of System Conditions, operational Information and IPS Performance
Information Exchange interface
System Planning Exchange
Operational Information
Post-Dispatch Information
File Transfer
Performance Data
Gazetted on Friday, 30th August 2013
The provisions of the Grid Code apply to all undertakings in the electricity supply industry
The REFIT policy is being developed in order to diversify the Zambian Energy sector
It focuses on specific details of expansion of renewable energy uptake through private sector involvement and Feed-in-Tariffs
The REFIT was developed through an intensive stakeholder participation process
To create a platform and remove barriers for increased private sector involvement in the expansion of the energy sector
Short-term: To increase the national generation output through private sector participation
Medium to Long-Term: To contribute to a diversified renewable energy mix for energy security
To provide for a REFIT generation allocation of initially 150 MW
To provide for a REFIT micro generation allocation of initially 10 MW
To provide a platform for the second REFIT phase
REFIT shall:
Increase overall energy production,
Increase use of and investment in a diversified range of renewable energy technologies,
Reduce greenhouse gas (GHG) emissions,
Provide sustainable energy for economic growth, social equity, climate resilience and protection of the environment,
Intelligent distribution of risks, rights and responsibilities among stakeholders.
MMEWD Shall prepare the following
Rapid IRP allocations:- In close cooperation with ERB and ZESCO fro the first 3 – year phase;
PPA risk mitigation:- In order to secure confidence in the off-taker
Governmental preferential guidelines:- For the involvement of the Private Sector
Tender rules and processes:- In close cooperation with ZPPA. MMWED shall administer the tender process.
The Energy Regulation Board (ERB) shall prepare the following:
Marginal avoided costs:- The marginal avoided cost shall be developed and proposed by ZESCO for approval by ERB;
REFiT tariff. These shall be based on the calculated avoided costs of marginal energy supply;
Grid rules alignment.:-ERB shall ensure that existing Grid Rules are aligned to and accommodate the REFiT Policy;
Standardized PPA and licenses:- Standardized PPAs and licenses shall be prepared and issued by ERB with ZESCO as the off-taker. The PPA and license templates shall be developed and proposed by ZESCO for approval by ERB;
Micro-generation connection guidelines:- The micro-generation connection guidelines shall be developed and proposed by ZESCO for approval by ERB.
ZESCO shall provide active participation in
development and formulation of secondary
mechanisms outlined above and effective and
timely execution of roles and responsibilities
as laid out in the secondary mechanisms
issued by MMEWD and ERB.
Energy Management Promote efficient use of energy resources, energy
conservation and substitution.
Household Energy To reduce dependence on wood fuel and ensure
sustainable provision of affordable, reliable modern energy services to rural and urban households as a means of raising productivity and standards of living.
MINISTRY OF ENERGY AND WATER DEVELOPMENT
Removal of duties on Energy efficiency appliances through issuance of SI 32 and 33;
Conducting Walk in Energy Audits in SMIs; Encouraging the use of LPG for domestic use; Conducting Energy awareness campaigns e.g.
energy weeks; and Issuance of a Cabinet Circular (2008/9) in
Supporting ZESCO in making sure that Public institutions are on prepaid metering and replacement of incandescent bulbs with Energy efficient lighting systems e.g. CFls
Government will always be in support of the new workable solutions and technologies in the energy sector
Government is keen at improving on the existing instruments
Government is keen at partnering with the Private Sector in addressing the challenges in the energy sector
MINISTRY OF ENERGY AND WATER DEVELOPMENT