Energy policy and development in zambia

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


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.


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


Resource mobilization for development ofthe energy sector;

Partnerships with the private sector, civilsociety and community participation ofZambian citizens in all aspects in the energyindustry


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.


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


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Energy policy and development in zambia