Joint UNDP / World Bank Energy Sector Management Assistance Programme

c/o The World Bank * 1 818 H Street, N.W. * Washington, D.C. 20433 * U.SA

ZIMBABWEEnergy Efficiency Technical Assistance Project:

Strategic Framework for a

National Energy Efficiency Improvement Program

(NEEIP)

ESMAP Activity Completion Report

April 1994

Power Developmenmt, Efficiency and Household Fuels DivisionIndlustry and Energy Department

1818 H Street, NW.The World Bank

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-CONTENTS

Foreword ............... ii

Glossary of Terms ............... vi

ections

Section 1. Introduction .1

Section 2. Strategic Framework for a National Energy Efficiency ImprovementProgram (NEEIP) .4

Section 3. Power Curtailment Plan Retrospective - Lessons Learned . 11

Section 4. Preliminary Assessment of the Opportunities for Cogeneration .13

Annexes

Annex 1. Critical Success Factors in National Energy Efficiency Programs .............. Al

Annex 2. Prerequisites and Skills for a Successful Energy Efficiency ImplementingAgency ................................................... B I

Ainnex 3. Summary of program models for energy efficiency improvement programs.. Cl

annex 4. ZESA Energy Rationing Scheme, 1992 - Announcement to Consumers,October 1992 ........................................................... Dl

Annex 5. Qualitative Coraparison between the "Quota System" and load shedding ....... El

Foreword

1. In 1990, the Government of Zimbabwe (GoZ), the Departmnent of Energy Resourcesand Development (DOERD), and ESMAP collaborated to prepare an Energy StrategyEvaluation Report, which, inter alia, assessed the options, requirements and potentialbenefits of stepping up efforts to improve the efficiency of energy end-use in majoreconomic activities in the country. The objective of this activity, as subsequently formulatedin the Activity Initiation Brief (AMB) of May 1992 and discussed with GoZ, was primarily toassist GoZ and the Zimbabwe Electricity Supply Authority (ZESA) to overcome the powershortages by (i) preparing a Power Curtailment Program and (ii) evaluating the feasibility ofshort-term capacity increases in light of estimated cost of outages, updated demand forecastand potential short-term savings through demand management, and including a preliminaryassessment of the opporttuities for cogeneration.

2. An ESMAP mission of June 1992 recommended that immediate attention be given tothese issues, in view of the laxity of the Government in implementing measures to reduceelectricity demand. In July 1992 the nature of the potential catastrophe was realized: with anelectricity generation of 571GWh being produced from Lake Karibal (288GWH fromKariba South bank and 283GWh from Kariba North bank) in August 1992, the minimumo3perating level of 475.5m was expected by the end of the year. Direct imports from Zambiahad stopped and ZESA had to hurry into an import agreement for 120MW from Zairethrough Zambia. ZESA had prepared load shedding schedules but had not implementedthem. Although ZESA had been undertaking a public information campaign to saveelectricity, which was supported by the Confederation of Zimbabwe Industries (CZ[) and theZimbabwe Association of Business Organizations (ZABO), the impact was found to belacking in many respects and hence was partly ineffective. During this time a number ofunplanned outages had occurred which had considerably disturbed many of themanufacturing and industrial sectors. A complete system failure in August 1992 highlightedthe looming crisis and forced ZESA and GoZ to take immediate action.

3. An ESMAP mission of September 1992 assisted ZESA in fine-tuning andimplementing the so-called Quota System as the main instrument to curtail energy demand.This was supplemented by a load shedding program, as deemed necessary, to curtail powerdemand, since both energ,y and capacity had to be curtailed. At the time, the mission wasappalled at the apparent lack of urgency that it encountered within ZESA and theGovernment in coming t:o grips with the electricity supply shortage facing the country.During the mission, ESMAP made available some funds to produce a pamphlet forimmediate distibution to consumers to give them guidance in ways and means to reduceconsumption. As well, it assisted ZESA to design an adverdsement to be placed in the local

In a Joint Comumique of August 27, 1994, signed by Minister of Transport and Energy ofZimbabwe and the Minster of Energy and Water Development of Zambia, both ZESA (Kariba South Bank)and ZESCO (Kariba North Bank) must reduce generation to 250MW energy equivalent, till December 31,1992. This corresponds to 18DGWh/month for each.

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newspaper, The Herald To evaluate the feasibility of short term capacity increases themission also reviewed ZESA's Power Development Plan.

4 At the request of ZESA, the planned mission of January 1993 was postponed untilApril 1993 so as to be better able to diagnose the effectiveness of the Power CurtailmentPlan. This plan had been iraplemented on September 21, 1992 and was officially suspendedon March 1, 1993. Planned load shedding measures had already been suspended inDecember 1992. During this mission it was decided, with the agreement of the Ministry ofTransport and Energy (M`E) and the Department of Energy Resources and Development(DOERD), to extend the sc:ope of work of this activity within the balance of funds; and, inthe light of emerging priorities concerning the lack of strategic focus and strategic directionwithin the MTE and DOERLD, to identify, formulate and prioritize policy objectives and tocoordinate government efforts for the effective realization of energy efficiency activities inZimbabwe.

5. The objectives of the extension of work were to:

(a) Develop a sirategic framework for a National Energy Efficiency ImprovementProgram (NEEIP); and

(b) Develop institutional guidelines and an appropriate mechanism for ensuringan effective implementation of the energy efficiency activities establishedwithin the framework of the NEEIP, including strengthening the institutionalcapacity to identify strategic issues in the energy sector and to integrateenergy efficiency issues into the policy dialogue to be able to put togetherviable integrated energy strategies in the future.

6. For the above missions, ESMAP was assisted by consultants from COPEL, anElectric Utility in the State of Curitiba, Brazil that had implemented successfully a "QuotaSystem" for energy rationing, and a consultant from Ghana who, as the former ChiefExecutive of the Volta River Authority (VRA), had implemented power/energy curtailmentand consumer awareness programs in Ghana.

7 . The final mission for this activity took place in August 1993. The mission objectiveswere to do the groundwor1k for defining the strategic framework for NEEIP. ESMAP wasassisted for this extension of the scope of work by consultants from the Energy TechnologySupport Unit (ETSU) of the Energy Efficiency Office of United Kingdom's Department ofthe Environment. ETSU is an Executing Agency that has successfully managed energyefficiency schemes on behalf of the UK Government since the 1970s.

8 . Finally, this activity was concluded at a Workshop that took place during December1993 in Nyanga, Zimbabwe. The main objectives of the Workshop were to provide a forumfor discussion and formulate recommendations to GoZ on the development of a strategicframework for a NEEIP including the aims of a NEEIP, linkages to existing institutions andiidentification of stakeholciers as well as proposals on the most appropriate organization toimplement the NEP.

9. This Completion Report concentrates its effort on the last stage of this activity, whichis tu formulatioh of the SLrategic framework for a NEEIP. This activity is the mostimportant, thus the degrze of detail it is described. The report also includes a briefretrospective of the "Quota System" as it was applied to Zimbabwe. Other work carried outby consultants is very conicisely summanzed as to the key findings and recommendations.Thus, the conclusions reac:hed as regards the potential for cogeneration are only preliminarysince the conditions and situation in Zimbabwe have changed, particularly in reference toenergy and electricity prices.

10. This Completion Report2 is structured in the following fashion: Section 2 provides adetailed description of the strategic framework for the NEEIP, Section 3 provides aretrospective review of the Power Curtailment Plan, and Section 4 surnmarizes theco:asultants' preliminary work on idenfifying the opportunities for cogeneration.

11. This activity was funded by the Swedish Intemational Development Authority. Theirfinancial assistance is gratefully acknowledged.

2 This completion report is based on the following reports:* Energy Efficiency Strategic Framework for Zimbabwe -Fmal Report, ETSU, January 1994.* Energy Efficiency Strategic Framework for Zimbabwe -Background Report, ETSU, October 1993.* Proceedings of the National Energy Efficiency Improvement Programme (NEEIP), Ministry of Transport

and Energy, Volumes I and 2, December 1993.* Power Curtailment Plan, COPEL, September 1992.* Preliminary Assessment of Cogeneration Opportnities, Update, SEED, June 1993.* Preliminary Assessment of 'the Opportunities of Demand-Side Management, Draft Report, COPEL,

December 1992.* Summary Report in the Audit Follow-up Program, SADC Industrial Energy Conservation Pilot Project,

November 1991.* National Electricity Rationing Study, Final Report, Powerplan Consultants (Zim) (PvT) Ltd and

Zimconsult, October 16, 192.* National Electricity Supply Crisis: Immediate, Medium and Long-term Options, ZESA. August 1992.* Staff Appraisal Report, ZmLbabwe Power m Project, The World Bank, November 16,1993.* Decentralized Power ProdLction: Potential of Renewable Energy Technologies to meet the need of

Rural People in Zimbabwe,, ZEEP Initiative, Biomass Users Network, Harare, Zimbabwe, July 1993.

Glossary of Terms

Units used throughout this report conform to the System Intemationale (SI). The definitiono;f some of the concepts used are provided below in the footnotes. Where other units areused they are explained in the text.

Abbreviations and/or MeaningA&conm

BPC Botswana Power Corporation

CEM Contract Energy Management

CIDA Canadian International Development Agency

CFU Commercial Farmers Union

COPEL Companhia Paranaense de Energia, Brazil

CIPU Central Planning Unit

CSO Central Statistical Office

CzI Confederation of Zimbabwe Industries

EOERRD Department of Energy Resources and Development

DSM Demand Side Management

ESAP Economic Structural Adjustment Program

ESCo Energy Service Company

ESKOM Electricity Supply Commission of South Africa

ETSU Energy Technology Support Unit

FOR Forced Outage Rate

D] Intelrnational Energy Initiative

LOLP Loss of Load Probability

LRMC Long-run marginal cost

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MIC Ministry of Industry and Commerce

MIS Management Information System

MLG Ministry of Local Government

MIOEr Ministry of Environment and Tourism

MPCNH Ministry of Public Construction and National Housing

MIE Ministry of Transport and Energy

NEEIP National Energy Efficiency Improvement Program

NRB Natural Resources Board

PSDP Power System Development Plan

R-CZ Research Council of Zimbabwe

SADC Southern Africa Development Community

SllA Swedish International Development Authority

SIRDC Scientific & Industrial Research & Development Center

TRT Blast furnace top-pressure recovery turbine

ZEEP Zimbabwe Electrical Energy Efficiency Program

ZABO Zimbabwe Association of Business Organizations

ZESA Zimbabwe Electricity Supply Authority

ZNCC Zimbabwe Chamber of Commerce

ZRA Zambezi River Authority

1

Introduction

1.1 Zimbabwe's resource base is considerable. Coal ranks as the largest prinary energysupply with probable reserves totaling about 10.6 billion tons scattered in 21 known coalfields and an estimated two billion tons mineable. The traditional fuel has been biomass with80 percent of the population, mostly rural-based, dependent on it. Very little has been doneto assess the sustainable woodfuel supply. The total area of surviving and accessiblewoodland with fuel potential is equivalent to about 20 percent of the national land area.Agriculturnal residues are used to produce 30 million liters of ethanol which is blended withpetrol as a fuel for motor vehicles. Bagasse is used for cogeneration. Hydroelectricpotential is concentrated along the Zambezi river, which borders with Zambia, and has beenestimated at 37 TWh of which about 1 ITWh has been developed at the Kariba Dam andVlictoria Falls. Solar insolation is considerable with an expected 3,000 hours of sunshine peryear and a daily radiation of about 2kJ/cm2. A project funded by the Global EnvironmentalFacility targeted to the rural community expects to have about 20,000 solar photovoltaicsinstalled in the next few years. Wind energy, with an average wind speed of 3m/s (lowregime) does not have ecoiaomic potential at this time other than to supply diesels in remoteareas.

1.2 In percentage tenns, primary energy supply is made up of coal (44 percent),fuelwood (39 percent), hydropower, 4 percent; molasses/bagasse, 2 percent; import ofpetroleum products and electricity, 11 percent. Final consumption in 1991 was 262,623 TJo f which residential, 48 percent; industry, 24 percent; agriculture, 13 percent; transport, 9percent; mining, 3 percent; and commerce, 4 percent. Final electricity consumption in 1991was 32,230TJ1 with manui acturing industry, 46.3 percent; residential, 17.3 percent; miing,1]5.5 percent; commerce, 11.7 percent; agriculture, 8.9 percent; and transport, 0.3 percent.

1.3 In 1992, Zimbabwe experienced one of the worst droughts in recent memory, whichposed and still poses major challenges in keeping the Bank's Economic StructuralAdjustment Program (ESAP) on track. It forced ZESA to implement a Power CurtailmentProgram, based on a combination of load-shedding and a so-called Quota System2, to rationenergy demand by about 17 percent on average. The economic costs of the rationing schemehave not been fully quantiEied though they were estimated by the Zimbabwe Association ofBusiness Organizations (ZABO) at Z$2.5 billion (about US$0.43 billion in 1992 moneyterms) plus the loss of 57,000 jobs. During 1992, GDP fell by 8 percent, leaving thecountry in the worst recession since its independence. The plentiful rains of 1993 havebrought the promise of economic recovery, but they should not bring complacency. In thebudget speech of 1993/1994 the Senior Minister of Finance reiterated the Government's

1TJ is equivalent to 278 MWh.2 VWith the assistance of ESMAP and as part of this activity.

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commitment to the structural reform program. Progress on this will depend greatly on rapidgrowth and increased private sector-led participation. The response of the private sector sofar has been poor. Although the drought and tight monetary policy are part of the causes forthis, the Government appears to be sending ambivalent signals to potential investors, bothdomestic and foreign.

1.4 Commercialization and, to a lesser extent, privatization have slowly begun to be felt.It is evident that the protection of parastatals from competition and their subsidization willcontinue only in the short term. In an address to Congress '93 on Wealth, Creation andDeregulation, the Minister of Industry and Commerce stated that "monopolistic practiceswould not be tolerated and the days of guaranteed markups are gone forever". TheGovernment is thus committed to remove ZESA's monopoly and has announced that otherpower producers will be allowed to supply electricity to the grid.

1.5 The recent rise in energy prices as a result of ESAP has created conditions in whichall sectors of the economy are highly receptive to the concept of energy efficiency. Thisreceptiveness is partly a result of the worries surrounding the disruption that would becaused if further rationing became necessary by an additional dry year and partly a result ofthe awareness of increasing prices of energy in general, and electricity in particular. There isthus, an ideal opportunity to start a coordinated approach to energy efficiency. This projecthas therefore concentrated in proposing a strategic framework for a National EnergyEfficiency Improvement Program (NEEIP) as a first step in the promotion of energyefficiency in Zimbabwe.

1.6 In the past, the availability of cheap electricity in Zimbabwe was one of the principalcompetitive advantages for industry, particularly in the mining sector. Industry is presentlyless constrained by electricity shortages now that the drought has eased; but has to contendwith rising electricity prices as the Zimbabwe Electricity Supply Authority (ZESA) copeswith rising production cosits and hard budget constraints that have become a reality once itbegan to operate under coimmercial practices. The expected tie lines to Cahora Bassa andSouth Africa, which are part of the least-cost options from ZESA, are developing rathersiLowly and the conmmissioning dates have been slipping, a fact which makes energyefficiency more of an imperative.

1.7 There is a genuine sense of urgency within MTE to do something effectiveimmediately which will alleviate the critical supply situation over the next two years, until thetwo interconnectors from Cahora Bassa and RSA are commissioned.3 Thus, in policyterms, GoZ has the following priorities:

* Pursue the requirements of ESAP in the commercialization of ZESA, hence anincrease in the price of electricity to its long-term marginal cost of supply isinevitable. Energy efficiency will provide a shorter term means for industrial andcommercial consumers of electricity to adjust to the higher tariff;

* Sustain the competitive advantage of Zimbabwean industry in internationalmarkets in the medimn to long term through energy efficiency;

* Seek ways of helping ZESA to defer investment in a new generating plant in thelonger term

3 Commissioning is nom expected to be no earlier than 1996.

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1.8 The strategic framework for a NEEIP is described in the next section. Thedescription follows the reccornmendations arrived at the Joint MTE/ESMAP NEEIPWorkshop that took place in Nyanga, Zimbabwe during December 15-17, 1993. Thisframework has been accepted in principle by Government; however, the mode ofimplementation has yet to be decided. This matter will be taken up in a subsequent phase ofthe project. This report also includes brief overviews of other activities that were undertakenduring this project, namely: (i) lessons leamed from the rationing program based on a "QuotaSystem", and (ii) preliminary assessment of the potential for cogeneration.

2

Strategic Framework for aNational Energy Efficiency Improvement Program

(NEEIP)

2.1 At the NEEIP Workshop it was clear that there was universal acceptance for the needof a NEEIP. The NEEIP is expected to be an umbrella program that thoroughly exploits thesynergies with overall energy sector initiatives and harnesses market-based policyins;truments to the fullest. It must be financially sustainable and information must be madewidely available on energy efficiency technology and management techniques to encourageand maintain energy efficiency in the longer term.

2.2 Govemment expressed commitment to energy efficiency forms part of the GoZvision for energy efficiency. Although the overall vision is yet to be formulated, it is clearthat the vision must send a signal to end-users, which includes the private sector, of thecommitment that governmenit has for energy efficiency and the opportunities that this willgive all Zimbabwean industry in term of enhanced competitiveness. With ESAP and theprovisions of the Bank's Power Im Project, prices have increased, markets are beingliberalized and industies are being placed in a more competitive enviromment

2.3 Elements of the mission for a NEEP were articulated at the Workshop and includedinter alia: raising the national consciousness of energy efficiency issues, encouraging anational commitment to energy efficiency, ensuring a sustainable environmentaldevelopment, ensuring an equitable distribution of energy resources, encouraging domesticproduction of energy efficiency equipment and focusing on energy efficiency rather thanconservation. Thus, NEEIP must not aim to reduce energy consumption at all costs, butimprovements in energy use should be made that are compatible with raising living standardsand ensuring economic growth.

2.4 If energy is priced appropriately, then improving energy efficiency is synonymouswith reducing energy costs. TIhe main perceived benefits of a NEEIP include: reduction ofenergy costs to end-users, increase in the competitive position of industry and commerceparticularly as improvements in energy efficiency coincide with other improvements such asproductivity and product quality, helping to reduce environmental degradation, helping toimprove the health of the population and helping to improve the standard of living for allconsumers.

2.5 The NEEIP should be comprehensive and cover all sectors and all fuel types. Itshould cover both supply and demand. It should be part of a holistic energy efficiencyconcept including: macro efficiency, with the prerequisite of economic stability and growth;price efficiency; openness to private sector investment and research and development;

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supply-side efficiency; demand-side efficiency; and externalities such as environmental taxesand regulations as well as rural development linkages. Government must be one of the mainplayers and undertake several activities in support of a NEEIP, namely: enacting legislationto foster energy efficiency, promoting the development of energy efficiency codes andstandards, establishing fiscal measures such as giving tax rebates and/or exemptions forenergy efficiency equipment, ensuring that energy pricing encourages energy efficiency, andparticipating in setting up a program management mechanism for a NEEIP.

2.6 For planning and implementing a NEEIP, the following activities would be required:identification of the barriers to energy efficiency;4 analysis of energy supply and demand andassessment of current technologies and energy use indices; establishing a consultativecommittee that would include key stakeholders from all sector of the Zimbabwean economy;preparation of a national energy efficiency plan, or "umbrella" strategy that would build uponactivities already taking place and would provide a consistent set of policies, incentives andprograms; encouragement of a national commitment to energy efficiency, identification of anAgency to coordinate and implement the plan; and setting up an infrastructure for energyefficiency.

2.7 The NEEIP is expected to put good intentions into action by creating a favorableinstitutional environment. Within the strategic framework proposed for a NEEIP, theGovermment should concern itself with policy issues and an Agency outside Governmentshould be responsible for coordination and implementation of various activities.5 ThatGovernment should be responsible for policy issues related to the NEEIP is in line with thepublic service reforms underway in Zimbabwe. In this framework there are clear-cut andspecific roles for Governnent and for the NEEIP Implementing Agency. It is assumed thatthe DOERD will be the representative of Govenmment.

2.8 Based on the above considerations, the specific activities for Government Li.e.,DOERD) should include:

P Preparing and clearly articulating the Government policy aims with respect toenergy efficiency including the introduction of energy pricing policies thatprovide clear incentives for energy efficiency improvements at both the supplyand end-use levels;

* Detailing Government's broad aims for energy policy and strategic issues forenergy supply markets;

* Ensuring that activities carried out within the NEEIP meet the Government'senergy policy and are coordinated with the policies of other GovernmentDepartents;

4 The main hbminz for achieving energy efficiency are: technical, economic/financial and institutional.Included in these are principally: availability of energy efficient equipment and machinery and shortage ofrelated technical expertise; trade restiction on energy efficiency technology, equipment and appliances; weakdomestic capital markets; vialble financing packages; lack or shortage of information about energy efficiencytechnologies and management techniques; lack of corporate commitment to energy efficiency; low (butincreasing) energy prices; existence of protected industries; inability to undertake strategic planning andanalyzing options, and finally, lack of confidence in energy effciency.S Refer to Annex I fDr a concise summary of the "Critical Success Factors" in National EnergyEfficiency Programs (Source: ETSU Background Repot).

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* Preparing legislation and other regulatory instruments identified as being part ofthe NEEIP framework;

* Putting into place fiscal measures in support of a NEEIP;

* Negotiation funding for the imiiplementation of a NEEIP, from both theGovernment's own allocations and donors;

* Agreeing and setting targets for a NEEIP, and then acting as a customer for thedeliverables of dhe NEEIP.

2.9 DOERD is expected to act as the client for the services supplied by the ImplementingAgency. As a client, the DOERD must develop specific skills in contatal management andnegotiation of realistic targets and deliverables. DOERD will also need to ensure that themanagement mechanism proposed for any Agency satisfies Goverment accountability andpolicy issues.

2 10 The specific activities for the NEEIP Implementing Agency should include:

* Proposing programs to Government that meet specific policy aims. Suchproposals will need to be clear in their aims and objectives, setting targets interms of energy savings and management and with cost and resourcesrequirement carefully analyzed;

* Acting as a contractor, provide information to Government from whichGovernment can draw up policies;

- Acting as the central resource for energy efficiency activities within Zimbabwe.This would include liaison with programs that are not being carried out directlyby the Implementing Agency and also ensuring the latest international informationis available within Zinbabwe;

- Implementing programs, normally through the use of the existing infrastructurewithin Zimbabwe, using various actors for sub-contractors. If there are noappropriate channels through which to implement a program, the ImplementingAgency could implement programs directly;

* Encouraging thnrugh dialogue with end-users the building-up of trust and thedevelopment of confidence in energy efficiency.

2.11 Within this conceptual framework, the success of the NEEIP hinges on the stronginvolvement by all stakeholders, i.e., Government, energy suppliers and energy consumers.To ensure public accountability and that the programs being put forward meet the needs ofeni-users, the establishment of a consultative committee or NEEIP Advisory Board,composed of representatives from the key stakeholders, is envisaged. It is clear that theparticipatory process of stakeholders is viewed as essential to the success of a NEEIP.

2.12 The expected role of this Advisorv Board is to: provide advice on the strategicdirection of the NEEIP, provide advice on the formulation of new programs and specificprcqjects, monitor progress of programs and projects, comment of the cost effectiveness ofthe NEEIP, and provide public accountability for the Implementing Agency. The NEEIPAdvisory Board would not have management duties for the Implementing Agency, butwould ensure that all actors have an input into the activities of the Implementing Agency.Initially, there would be a need for the advisory board to form committees to comment on all

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activities of the Implementing Agency. However, if a particular program becomes a majorpart of the Implementing Agency's work, or if it is targeted at one particular subgroup, itmight be appropriate that various subpogram committees be established.

2.13 The Implementing Agency is expected to be the central focus for energy efficienca inthe market place and implement programs by whatever means appropriate. To carry outthese activities, the Implementing Agency will need personnel with specialized skllls. It willalso need to have very good links with the major players within the energy field, rangingfrom suppliers, consultants, equipment manufacturers and end-users. The ImplementingAgency is also expected to draw up contracts and hence needs to have contract and financeexpertise.

2.14 The structure of the NEEIP Implementing Agency and its overseer, the NEEIPAdvisory Board, may be ciepicted as in Figure 1. As the NEEIP evolves, the ImplementingAgency will evolve and its structure will need to reflect the growth in activities. Initially, itmay be possible to fill each skill area with one member of staff or even part-time personnel.The rates at which new staff could be hired would clearly depend on the initial size andgrowth of the NEEIP.

NEEIP

Advisory Board

DirectorNEEIP Implementing

Agency

Z Tehial || Marketing AdministrationSection Section Section

Figure 1. Proposed Organizafional Structure of the NEEIP ImplementingAgency including the independent Advisory Board.

,2.15 The identified sdlareas required for the NEE Implementing Agency are:

* Director: responsible for running the Agency, for attracting finance and liaisingwith customers. In the first instance, the customers will be the Government ofZimbabwe and donors;

* Technical Section: responsible for the technical assessment of potential programsand projects, technical implementation of programs and answering technicalqueries from consumers. It is expected that strategic or scoping studies wouldbest fit within the responsibilities of this section;

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* Marketing Section: responsible for drawing up marketing strategies for thevarious energy efficiency programs. The section would also implement themarketing strategies - through the use of existing infrastructure channels bysubcontracting - and measure the effectiveness of the programs and specificactivities. As part of its work, the section could also investigate methods bywhich and areas in which the Implementing Agency could sell its services togenerate long term sustainable income. There is also a role in obtaininginformation frorm other energy efficiency programs, particularly from overseas;

* Administration Section: responsible for setting up sub-contracts and managingthe administratilve and finance procedures resulting from them. It would alsokeep track of individual projects and programs through a programs office andhold and maintain the databases from which the Implementing Agency wouldoperate.

2.16 While it is important: that all sectors of the Zimbabwean economy be represented onthe NEEIP Advisory Board, it is also important that the board does not become too large anduhwieldy. Experience suggests that the optimum size is between ten to fifteen members. Itis envisaged that the NEEIP Advisory Board could be initially comprised of:

i Director of the Agency;

D Implementing A,gency customers, including DOERD, and if approprate, a donorrepresentative. If several donors are funding programs, it is suggested that onedonor be selected as its representative;

e Energy suppliers including ZESA, NOCZIM and Wankie Colliery Company;

* User representatives, including one each of industry, commerce, the domesticsector, the transport sector, etc.

2 .17 The initial activities of the Implementing Agency should be such that demonstrates toenergy users that the NEEIP is capable of meeting its objectives. As the staff will be limitedin both experience and numbers, it is important that the tasks provide value added to end-users. The objectives of these initial activities would be fourfold

* Establish the Implementing Agency as an effective focus for the emerging

* Fix the existence of the Implementing Agency in the public's mind, giving it acorporate identity;

* Develop further the commitment to energy efficiency in Government and otherkey end-users;

* Provide on-the-job training for Implementing Agency personnel, by severalmeans, one of which could be a twinming arrangement with an experiencedEnergy Efficiency Agency.

* Developing infrastructure for the implementation of energy efficiency projectssuch as awareness and informaion campaigns among the various end-users.

2.18 To meet the above objectives and to get the Implementing Agency staff involved withenergy users and demonstrate to them their commitment and capabilities, two types of

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activities can be suggestei for the fledgling Implementing Agency to undertake, namely: (i)Information Program, and (ii) strategic and scoping studies.

2Z.19 An Agency-based Infonnation- Program,6 would be primarily designed to overcomethe impediments to investment resulting from a lack of information and misinformation. Awell designed information program will take end-users along a process of understanding:from -awareness to comprehension and understanding leading to conviction and finallyaction. In the end, the end-users, based on commercial self-interest, are expected to maketheir final decisions to adopt proven energy efficient technologies and techniques, and/ormanagement procedures, and to use existing market-based mechanisms to stimulate theuptake of energy efficiency technologies. The end-user is the one responsible for turningconviction into action, based on a full understanding of what can be economically undertakenand the technology for imlplementation.

2.20 Initially the information program should focus initially on the industral. commercialand Government sectors. As experience is obtained, the program could be extended to thetransport and domestic sectors, which would assist to improve the wider public awareness ofthe NEEIP. The following elements of an information program may be considered at aninitial stage:

e Provision of information through introductory booklets, guides and leaflets,focusing on specific technical applications, generic technologies and/ormanagement techniques;

* Workshops and training seminars focusing on specific technical application,generic technologies and/or management techniques;

i Energy advice centers.

2.21 The Infonnation programs would focus mainly on no-cost and low-cost measures7,wih short payback measures, not more than 2-3 years. Good examples for these measuresithat can work in Zimbabwe are monitoring and targeting techniques and equipment, goodmanagement techniques nd the use of metering (the concept of sub-metering within end-users is generally not well understood).

:2.22 Strategic and scoping studies should also be undertaken by the ImplementingAgency to determine the targeting of programs, since it is clearly not possible and/or practicalto launch a NEEIP covering all sectors and subsectors simultaneously. At the strategic level,it is possible to examine the potential for energy savings by top-down estimates based onfuels and on whole sectors. These strategic studies would make possible decisions on therelative merit of targeting all the five broad sectors, namely: industry including miing,commerce, domestic and transport, or a more specific action to improve the efficiency withwhich a particular fuel is used.

6 During the NEEIP Workshop other models for an energy efficiency improvement program weredescribed. A summary of these are presented in Annex 3 (Source: ETSU Background Report).7 Experience from SjADC audits shows that the adoption of no-cost and low-cost measures issomewhat higher than for capital-cost measures (a cut-off of ZS10,000 or above was used). The adoption ratefor no-cost measure- was about 70 percent and that for capital cost measure about 60 percent, which showsthat the scaie of investment is not an absolute barrier to adoption. In fact, SADC experience indicates thatthe major barriers to the adoption of energy efficiency (and conservation) imeasures are an inadequatemanagement system and lack of foreign exchange. In fact, experience with energy efficiency programselsewhere show that making a corporate commitment is very important for the realization of energy savings.

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2.23 Once the decision. is made, scoping studies are undertaken to assess in more detailspecific sector and sub-sector initiatives and to determine how and where the savings can begenerated. From these scoping studies with information on technological requirements,c:osts and time scales, and from feedback obtained from the information program, theImplementing Agency can then design a program that is tailored to the situation and needs inZimbabwe. These activities are expected to be undertaken in a subsequent phase for thisF,SMAP Energy Efficiency Technical Assistance activity for Zimbabwe, beginning with anInformation Program and a study tour for local capacity-building.

3

Power Curtailment Plan RetrospectiveLessons Learned

3.1 The Power Curtailment Plan, which was implemented by ZESA on September1992, and officially suspended on March 1, 19938 was designed with the assistance fromE'SMAP to reduce system demand at the time of the disastrous drought of 1992/93, using thefollowing means:

* Limited Load shedding;

* Rationing of consumption by means of a "Quota System" (refer to Annex 4) forallocating a redLuced quantity of energy than previously consumed by theconsumer,

• Increased tariffs for electricity consumers in almost all categories;

- An additional penalty on the tariff for consumers which exceeded their allocation;

- Disconnection of customers as an additional deterrent for consumers whichconsistently exceed their quotas;

- Publicity campaign of the electricity supply cnsis caused by the drought.

3.1 The "Quota System" is a means of indirect load management which consists of theallocation of energy consumption by means of a quota for each consumer category. Thisquota is based on the consumer's historical average consumption for a time period which isusually taken as a year. The design of the different quotas must be such as to effectminimum disruption to the economy and to protect and preserve the key players in-theindustrial sector as much as possible.

3.2 The main foundaticns for the "Quota System" and its benefits over traditional loadshtedding were accepted by ZESA (refer to Annex 5 for a qualitative comparison). The mainfoundations for the Quota system are:

* Transparency to consumers;

* Universal participation;

6 In fact from he ffst metr reading after March 1, 1993.

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* Consumers fre:d to manage their consumption;

* Preservation of essential services;

* Level of curtailment dependent on tariff structure and importance of consumer tothe national economy;

* System of penalties and threat of disconnection.

3.3 The principal lessons learned from the experience in Zimbabwe show that the PowerCurtailment Plan was successful in reducing consumption by an average of about 15-17percent. The goal was about 20 percent. Load shedding measures are extremely unpopularwvith virtually all consumters. It is extremely important to have an efficient billing ands:ollection system where each consumer has its own file with historical consumption for atleast one year so that the allocation of quotas can be done in an efficient manner. Meterreadings, therefore, must be taken at regular intervals and sufficient meters and clericalpersonnel must be made available to read the meters and answer the flood of queries fromcbnsumers.

3.4 The Quota System must be made sufficiently flexible to allow for seasonal loads suchaLs those from farmers. The Quota System must also make atlowances for irregular meterreadings and forego the imaposition of penalties if the consumption has been estimated, sinceconsumers will dispute any penalty based on estimated consumption. It is absolutelyessential to have a well managed publicity campaign and for the electic utility to be proactivewith relations with the business community. In fact, a regular dialogue with the businesscommunity is essential to ensure the success of a Quota System so that the concerns ofindustry are incorporated in the design of the appropriate quotas for the different consumercategories and maintain flexibility as the situation changes.

:3.5 Improvements and refmements can be made to ZESA's Quota System above. Thepossibility of quota transiers between consumers was a refinement that had been suggestedby ZABO. Other possible refinement may be suggested generally as follows: avoid a staticquota as the electricity shortfall situation improves or deteriorates; establish a Task Force on]Energy Curtailment, with membership from key stakeholders, to provide advice to theelectric utility on the effectiveness of the rationing program; and finally, once the rationingprogram has been approved by Government and the legal framework is in place for itsenforcement, the elecric utility must be left to get on with its mandate.

4

Assessment of the Potential forIlndustrial Cogeneration

4.1 The term cogeneration characterizes energy conversion processes from a single fuelsource in which heat is generated for a dual purpose, usually to produce both electncity and aflow of otherwise useful heat. The heat output is conventionally in the form of steam or hotwater. Such dual-purpose processes can substantially improve the efficiency of energyutilization for electric power generation. Moreover, cogeneration of electricity with processhLeat in industry will reduce the capital expenditure requirements for construction of electricutility plants. This is a mec:hanism for bringing non-utility capital into the power sector.

4.2 Presently (in early 1993), installed cogeneration capacity in Zimbabwe is about1 IOMW supplied by four power stations and 60MW of this total is supplied by bagasse-burning sugar mills. Cogeneration, as a component of energy demand management, hasnever been considered in a significant manner in Zimbabwe, since local economics includingelectricity prices were not conducive to a more widespread use of cogeneration.

4.3 To evaluate the technical potential for cogeneration, the reference system orbenchmark that was finally opted for was a back-pressure steam turbine with a coal-firedboiler. Other options looked into were: (i) extraction/condensing configuration, (ii) gasturbine with heat recovery system for the generation of heat, and (iii) diesel engine coupledto an electric generator.

4.4 The extraction/condensing configuration is favored for maximum production ofpower and in those cases where steam and electric loads vary significantly and frequently.However, this is a more expensive and sophisticated configuration which requires, forinstance, a condensing unit and sophisticated electronic safety systems for connection withthe national grid. Regarding gas and the situation in Zimbabwe, it is clear that theunavailability of gas poses a constraint to the development of this technology. Regardingdiesel, although a number of industrial plants have diesel-generator sets, their principal use isfor emergency purposes. 'his is also the case for other sectors such as hospitals and hotels.Because of fuel availability, diesels can only be used for limited sectors, such as foodstuffs,the chemical industry, or in hotels and hospitals in the commercial sector. As well, the largerlow-speed diesels using heavy oil might also be suitable for the largest consumers.However, these consumess are already using coal. From this stems the rationale for the

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selection of a back-pressure turbine and superheated9 steam coal-fired boiler.

4.5 The reference system tbermal parameters are chosen as steam pressurized at 60bars1I and superheated to 4500C. The average steam pressure of the turbine outlet is 7 barsand temperature about 200'C depending on the turbines thermodynamic cycle. In the back-pressure turbine, the back ipressure can be selected to match the exhaust steam temperatureand pressure requiremenis of the downstream process. Figure 2 shows a schematicrepresentation of the reference industrial cogeneration system adopted for this assessment.

Electriciity | Low pressure51 1 t ~~~~steam

[Generator tea

H\ligh pressure

Power Boiler Feed

Water

IN

Figure 2. Typical-combined cycle plant for industrial heat and electricity

4.6 Although a reference cogeneration system was used in the assessment of thetechnical potential, it is clear that each individual industrial process requires a tailored conceptincorporating an optimized heat cycle and careful matching of all components. Other factorswhich can increase the efficiency of cogenerated heat and electricity are intensified feedwaterheating and an additional increase in steam temperature and pressure. In addition to thesethermal requirements, an optimum system concept also takes into account extemal boundaryconditions, which include the prevailing tariff structure for electricity, as well as thereliability and stability of the grid. Even the exclusive generaton of electic power can be acost-effective solution for an industrial plant; e.g., waste products can be incinerated as fuel,

The use of superheated-steam boilers may not be apparent. However, the rationale for selectingihem as a reference system is kased on the following:

Capital cost for supeiheated boiler are similar to capital cost for saturated-stem boilers;There is more kW ouiput at the turbine-generator per volume of steam input;Superheated-steam turbines are less complex than saturated-steam turbines;

* Superheated systems r equired less maintenance than satmated-steam systems of equal pressure;axnSupeeated-heat turbines are more commercially available than santated-steam turbines.

10 Sixty times atmospheric pressure.

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or waste heat can be recovered. Industrial processes can also be made more economicalthrough the conversion of older power plants to provide cogeneration of electricity and heat.

4.7 To evaluate the technical potentiallI for additional on-site industrial cogeneration,the following subsectors were analyzed: foodstuffs, Triangle sugar mill, drink and tobacco,textiles, clothing and footwear, wood and furniture, pulp and paper, chemical and petroleumproducts, Sable Chemicals, Zimbabwe phosphates (Zimphos), non-metallic products,Zimrbabwe Iron and Steel (,isco), transport equipment, and mining. The procedure selectedwas to identify one or two case studies for each subsector and then extend the results to theentire subsector. Triangle, Sable Chemicals, Zimphos and Zisco were assessed separately inwhat follows.

4.8 The presently (i.e., late 1992) installed capacity at the Triangle sugar mill is 32MWbut normally only 22MW is available. Once the extraction plants have removed thedissolved sugars from the cane, the bagasse is burned in the boiler. The total steamgenerating capacity is over 400 tons per hour. The turbines are back-pressure type withcapacities ranging from 5-7.5MW. The low pressure steam at the turbine outlet is used forheating. The electricity generated is used at the factory and for irrigation. During the caneseason, power and heat requirements are met with bagasse. In normal operation, 2MW ofsurplus power is available to ZESA. During the off-season, the heat requirements are met byburning coal. Coal consumption for the 16-week off-season periods varies in the range30,000-50,000 tons. 12 After refurbishment of the old-turbines, Triangle can make availableto ZESA 12MW, 7OGWh during the processing season and an estimted 22MW, 55GWhdLuring the off-season. An average annual energy generation of 105GWh is used.

4.9 Sable Chemicals can produce (early 1993) about 800 tons/day of ammonium nitrate;it also can produce oxygen for Zisco. Power consumption is in the range of 100- 15MW.There were (and still are) strategic issues, touching on autonomy and self-sufficiencyconsiderations, regarding the production of fertilizer locally as opposed to importing it,which were beyond the scope of this activity; and which the Government of Zimbabwe mustsort out. It is a fact that the production of ammonia from electrolysis takes a considerableaunount of power from the grid, power that could be used in other productive sectors of theeconomy. It is also a fact that fertilizers are vital to the agricultural sector. Options for Sable(Chemicals are the substituation of the electrolysis process by an ammonia production usingeither coal gasification or coke gasification, or the importation of dedicated cheaper hydropower from Zambia (by an independent power producer, for example). From a cogenerationpoint of view, these options would make available to ZESA a considerable amount ofelectrical power. Some projects were being discussed (late 1992) as a substitute to theelectrolysis process, naniely: (i) coal gasification, (ii) coke gasification, and (iii) powersupplied over ZESA lines from Zambia. In the first instance, assuming a gas/steam turbinecycle installation of 200M[W, a net credit of 300MW for cogeneration can be given. With thecoke gasification process with the coke coming mainly from Zisco and Hwange, a reductionof demand of 78MW can be envisaged. The third alternative would relieve about 100MW.For this assessment, the coke gasification process was selected.

11 It is assumed that ihere is a technical potential when coal consumption and the plants steamrequirements are sufficient to install a technically acceptable system with an installed capacity gratr dtan400kW.12 Total industrial (manufacturing and mining) demand for coal was 1.5 million tons in 1991. Totalcoal demand, including the power subsector, was 4.5 million tons.

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4.10 Most of Zimphos' heat requirements are met by energy recovery from theexothermic reactions of the combustion of pyrite and sulfur. Three waste heat boilersproduce about 80 percent of the plant steam requirements, the remaining 20 percent areprovided by a coal-fired boiler. Thereis no cogeneration system at the plant. The estimatedcogeneration potential at Zinmphos is 2MW with a possible production of 12GWh or 40percent of the current (early' 1993) consumption.

4.11 Zisco has a production capacity of 1 million tons of steel; normal production ofabout 700,000 tons/year. Average demand is 27MW. Cogeneration facilities are available'with installed generating capacities of 2.5MW and 3.5MW, however, the cogeneration unitsare only operational in emergencies. Additional cogeneration potential has been estimated at3MW, 23GWh with a plaaned refurbishment of the power station and the use of a blastfurnace top-pressure recovery turbine (TRT).

Table 1. Technical Potential for Industrial Cogeneration

Subsector Technical Cogeneration Average AnnualPotential Electricity Generation(MW) (GWh)

Foodstuffs 14 90Triangle 12J22 105Drink & Tobacco 4 18Textile 10 40Clothing & Footwear 0 0Wood & Furniture 0 0Pulp & Paper (With black liquor) 10 60Chemical & Petroleum 6 18Zimphos 2 12Non Metallic 0 0Metals 0 0Zisco (with TRT system) 3 23Transport Equipment13 0 0Sable Chemicals (Coke Gasificaton) 78 624Mining'4 0 0

Total 139 990

13 This sector is composed of small and medium-scale plants whose size, number, working hours andheat-to-power ratio are very unsuitable for cogeneration. Present coal demand in this sector is about 7,000tons per year, or 0.16% of tho total coal demand in al sectors.14 The mining sector is electricity intensive with a consumption of about 1,389GWh, about 34% ofthe total in the manufacturing industry. Coal demand in the mining sector is about 72,000 tons/year, orabout 1.6% of the total coal oonsumption. This energy is mainly used for drying. It is assumed that there isno potential for cogeneration in this sector.

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4.12 The assessed technical potential is summarized in Table 1. The total estimatedtechnical potential is thus 139MW and 990GWh. Payback periods are all less than fiveyears. The most promising candidates are in the textile, pulp and paper and foodstuffsindustries.

4.13 To detemiine the economic potential for cogeneration a simple pay-back methodologyis used due to the large uncertainties which affect the parameters. The economic/financialpotential of cogeneration is defined as an estimate of the amount that could be produced at acost lower than or equal to the economic cost of power provided by ZESA. The simple pay-back approach measures the number of years required before the cumulative cash flowequals the initial capital investment. The system life is assumed to be 20 years. Roughestimates for capital costs were generated using studies carried out by EPRI and USAID15.The coal price is assumed to be that in late 1992, namely: 140 Z$1t, including pit-head costof production of 90 Z$/t and transport of 50 Z$/tI6.

4.14 The assessment of the economic potential was carried out with three electricity tarifflevels, as shown in Table 2. The first option is with tariffs as of December 1992. Thesecond includes an increase of 66 percent as foreseen at the time for mid-1993. The thirdoption is at the level of prices equal to the estimated long run average incremental cost,17

based on the firm components of ZESA's investment program.

Table 2. Economic Potential for Cogeneration for three tariff levels(FY93 average tariff was Z$0.175/kWh or about USc.3/kWh) .

Option 1 2 3

ZESA's pricesEnergy (Z$/kWh) 0.072 0.12 0.29Fixed monthly charge (Z$/kW/month) 63 80 80

Economic Potential (MW) 0 65 139

4.15 It is concluded that with good intermediation in the technology and financinginformation markets, that cogeneration projects are feasible with present ZESA's tarifflevels. It is also clear that many uncertainties and assumptions entered into the aboveassessment for the potenuial for industrial cogeneration and that the situation must be

15 EPRI: (455476 + 1052 x P) x 1.25 in Z$_ USAID: (963554 + 878xP)xl.25inZ$

where P is the generating capacity in kW and the factor 1.25 is applied because of the coal-based installation.An average of the two is used.16 In late 1992, pit-head coal prices ranged from an average of about Z$ 40/t for Hwange Power stationcoal sold to ZESA, through Z$30/t for higher-quality steam coal, to 105 ZSlt for washed coking coal. RefertD Power m Appraisal ReporL17 The long-run average incremental costs was evaluated in the Bankes Power m Project as being0.2935 Z$/kWh.

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reassessed in the light of present conditions. The potential for cogeneration arrived at isbtased on a reference system. Thus, the results provided are only indicative.

ANNEX 1

CRITICAL SUCCESS FACTORS IN NATIONALENIERGY EFFICIENCY PROGRAMS

1. Between December 1992 and March 1993, ESMAP, in conjunction with ETSU,undertook some research into critical factors that lead to successful energy efficiencyschemes, both at an individual project level and at a national scheme level. The workinvolved an analysis of mainly European schemes and projects, but also included work

from Palkstan and Cote d']lvoire and other countries in which ESMAP has been involved.Below is a very brief summary of the main findings of the workl.

Policy and Institutional Frameworks

2. The main critical success factor (CSF) in this area is that there is a clear separationof responsibilities between, on the one hand, policy formation and the setting of programobjectives and, on the other hand, the design and implementation of program activities toachieve the objectives. The implication is that the Government, through the Civil Service,should be responsible for policy matters, including the introduction of energy pricingpolicies that provide clear incentives for energy efficient improvements at both the supplyand end use levels. Complementary activities include the introduction of legislation andcodes, together with their enforcement.

3. A separate Agency should be given responsibility, under clear Terms of Referencein some form of performance contract with monitorable outputs and targets, to execute anenergy efficiency program (or group of programs). This Agency could be a definable partof Government, or free-standing (either publicly owned or even in the private sector). It isimportant that this Agency be able to attract properly qualified, appropriate and motivatedstaff to ensure that program targets can be met. In practice, most European Agencies arelwithin publicly owned comnpanies.

4. There is no reason why different programs cannot be run through differentAgencies, although the more Agencies there are, the more problems there will be withcoordination and resource optimization.

5. If individual programs are to be successful, there has to be clear trust between theAgency and the target end user sector(s). This requires effort and time to build up, togetherwith a clear understanding between all parties of what exactly the Agency is trying toachieve. If an individual Agency has a wide range of activities to execute, ranging fromlegislation formulation and enforcement through to individual program activities, there isnot only confusion amongst the end user sectors as to the Agency's exact role, but it alsoinhibits the building up of trust between the Agency and its customers.

Individual Program Formulation and Implementation

6. There are several critical success factors that experience has shown lead to successin the formulation and implementation of energy efficiency programs. These are:

1 Sources: ETSU Background Report for the NEE]P, October 1993, and World Bank Workshop on"Cdtical Success Factors" for Energy Efficiency Strategy Development, January 1994.

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* A market needs assessment. Which includes the identification of common baniers tothe adoption of energy efficiency measures in the sector concerned and focuses theprogram design on overcoming thLese barriers. The consultations should address bothtechnical and non-technical elements in improving energy efficiency. The consultationswould involve all relevant players within the targeted sector, ranging from equipmentsuppliers, consultants, end-users and their related associations. All these actors areimportant not only in program formulation but also in the running of program;

* Developing supporting technologv and services infrastructure. It is important that anyprogram takes into account the development of a sustainable technology and servicesinfrastructure. Without development of these sectors any program will not achievelong-term changes in. energy use. Key components in developing a commerciallyviable infrastructure include the development of: a consultancy sector that can identifyopportunities for users; a system to supply and maintain appropriate equipment andinstrumentation, either through local manufacture, joint ventures or liberalization ofimport restrictions; and the establishment complementary with research facilities. Any

- program that does nol: pay attention to these sectors might be able to be made to workwhile the program is ongoing, but any activity will cease once the program is finished;

* Formal targets and assessment procedures. It is important to establish a crediblesystem to measure both the success of overall program efforts and of individualprogrammed compornents and activities. Measurement of overall program successensures that momentum for a program can be maintained, and show to those financingthe program that they are getting a good return from their investment. Monitoring ofindividual program activities will enable the optimum use of resources to ensure that theoverall program is a success;

* Ageng staff. It is important that the Agency has not only well qualified staff, but alsowell motivated and appropriate staff. In general, it is the practice of most Agencies tomaintain a core of expertise internally and to recruit specialist expertise through the useof consultants. The central core staff need to be able to have the ability to makedecisions quickly to ensure that the overall program is a success. They also need tooperate under a set of procedures that allows them to react quickly;

* lndependent informa1Jgon. Provision of independent and authoritative information is acore activity in most nrational energy efficiency programs. The development of a trackrecord for providing ithis infonnation and training to end-users can take a long time tobuild up. However, trust in information and in the efficiency of the provision of theservices by an Agency, can be destroyed very quickly if good quality service is notmaintained

Success at a Company leire

7. There are some keuy factors that have ensured some companies take action on energyefficiency measures while others, in similar circumstances, do not. It is assumed in thissection that equipment for energy efficiency improvements is both proven and available.The following enable corapanies to progress furthest on energy efficiency:

* Senior Management Commitment. The commitment of senior management to energyefficiency greatly speeds up the process of energy efficiency improvements. Their rolecould be in the drawing up of a plan for energy efficiency and ensuring itsimplementation;

ANNEX 2

PREREQUIS1TES AND SKILLS FOR A SUCCESSFULENERGY EFFICIENCY IMPLEMENTING AGENCY

,rerequisites

* Strategic direction* Sufficient funding to meet objectives (which implies need for positive

cost/benefit for funder)* Sutable pool of talent from which necessary skills may be drawn

Information on market sectors to be addressed* Contracts/finance administration infastructure* Support from utilities and industrial sectors* Nascent or existing consultancy industry* Nascent or existing equipment supply industry

S]kill_

* General:* Ability to work at Government/Industry interface* Ability to :hink sategicaUy* Self motivation

. Marketing:* Market Research* Market Intelligence* Promotion'* Event Management

Technical Writing/Publications* Press Communications

* Technical:* Sound undlerstanding of technical issues for selected technologies and

industries* Project management and financial control* Negotiaticn* Commercial Awareness* Communications* Industrial/commercial experience

Source: ETSU Background Report for a NEEIP for Zimbabwe, October 1993.

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Energ Champion. There are people within organizations that are naturally interestedin energy efficiency and wish to take forward various initiatives. It is the task of seniormanagement and of independent agencies to liaise with these people to encourage theminto further actions. :[t should be noted that energy champions often do not havespecific responsibilities for energy consumption. Experience has shown that theappointment of energy' managers does not necessarily greatly advance the course ofenergy efficiency. For instance: if they are not greatly interested in energy efficiency,they will not be motivated to achieve very much; if they are the wrong type ofpersonality they will rot be able to interact with other members of the company tosuccessfully implement energy efficiency measures; and the appointment of an energymanager tends to give the impression to other potential energy champions within thecompany that energy efficiency is not their domain. Having said this, when the rightperson is placed in an energy manager position, large savings can be made;

Access to Information. The activities of energy champions can be increased byensuring that they have easy access to information on opportunities for energyefficiency improvement. This not only allows them to use their time in assessingopportunities most effectively, but gives them ammunition to put forward cases tosenior management for funding of energy efficiency activities, any independent orauthoritative information removing some of the risk of an investment.

ANNEX 3

SUMMARY OF PROGRAM MODELS FOR ENERGY EFFICIENCYIMPROVEMENT PROGRAMS

Introduction

1. This annex gives an overview of generic methods for energy efficiencyimprovement programs. It is not intended to be comprehensive, but to serve as a briefbackground to world-wide methods underway. The following generic methods arediscussedl:

* Agency-based Information Programs;* Grant-based Programs;* Utility-based DSM Programs;* Stimulation of Supply Industry;* Contract Energy Management/Energy Service Companies;* Regulations/Standards.

2. An overview of earh method is given, leading to a summary of the pros and cons ofeach type. Methods are discussed in their "pure" forms. In reality, while any program willusually be based on one raethod, it will also contain elements of others; for instance, aninformation element is usually part of any program.

3. All methods essentially aim to advance the uptake of energy efficient equipmentamd/or techniques by lowering the risk of an end-user investment. Methods can be judgedon their ability to produce real energy savings. However, while energy savings targets canb3e set for all methods, measurement of savings directly achieved by a method is not an easy

Lask Attempts at quantifying energy savings achieved range from those employing broad-based theoretical engineering assumptions, to those that make serious attempts at measuringindividual savings and to discount those savings which may result from factors not directlyattributable to the progarm. The variety of techniques used makes a direct comparison ofthe cost effectiveness of various methods difficult, so comparisons can only be made inlbroad terms.

Agency-based Informatioi Program

4. Agency-based information programs are designed to overcome the barriers toinvestment resulting from a lack of information and misinformation. They can also providematerial that enables end-users to both handle and process information. They are designed'to move end-users along a chain of understanding: from unawareness, through awareness,on to comprehension and understanding, leading to a conviction to act. What informationprograms cannot do is to turn a conviction to act into action.

5. Information programs aim to encourage.end-users to take actions that are in theirown economic self-interest and use existing market mechanisms to stimulate the uptake ofenergy efficient technologies and techniques. To achieve this aim, progams target end-users with information thalt clearly state the econoirc benefits of taking up a technology or

1 Source: ETSU Background Report for a NEE[P for Zimbabwe, October 1993.

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technique. In general, programs focus on short payback measures (generally under two orthree years).

6. Information programs can take many forms. They can loosely be classified aseither "dissemination" (i.e., the widespread distribution of information aimed at raisingawareness levels) or "decision aid campaigns" (i.e., personal, specific information andadvice aimed at the latter stages of the awareness chain). The information products can alsotaLke many forms, including mass-media advertisements, booklets, leaflets, audio tapes,videos, software, seminars, conferences, training courses, advice centers and audits(which could be classified as a grant-based activity).

7. In what follows a summary of "for" and "against" for Agency-based InformationPrggrams is given:

For.

* Programs are relatively low cost* Benefit to cost ratios are relatively high* Relevant to all sectors, especially where targeted messages can be made* Relevant to all levels within a sector and to all actors* Relevant to all fuelsX Programs can cover management/training issues as well as technologies* Quick results are possible in most sectors through promotion of no/low cost

measures* Information world-wide already available* Programs relatively easy to set up* Savings achieved through actions in the commercial interest of the consumer

Againt:

* Programs do not guarantee actioni Experience sbows there is a need for an efficient central focus, that would

require long term funding, usually in part by the public sector- Savings are much more difficult to stimulate in the domestic sector and in the

private transport sector* May not stimulate long payback but high return measures* Difficult to encourage major investment decisions such as a major process

change

Grant-based Programs

8. Many governments have operated or facilitated programs that encouragedinvestment in energy efficiency through financial measures such as grants, low-interestloans and tax reductions. The aim of these programs is to reduce the payback and risk ofan investment.

9. Schemes aimed at industry and commerce have tended to focus on promoting theintroduction of new technologies or on the promotion of energy auditing. This has oftenbeen achieved by direct grants worth of the order of 20 percent of the capital value, orthrough tax credits. By promoting novel technologies, the schemes are designed to offset ahost firm's financial risk, thereby accelerating the interaction of the novel technologies. InHolland, this concept has been extended in a scheme where government and industry

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sectors have signed covenants to achieve long-term energy savings targets in return for taxbreaks on the purchase of defined, generally proven, equipment.

10. Programs aimed at the residential sector have tended to focus on the building fabric,loft and tank insulation and on the provision of efficient heating systems.

11. Even a well-run and targeted scheme will be relatively expensive compared with theenergy savings generated. If a 25 grant is given for a four year simple payback measure, atbest, the ratio of annual energy cost savings to government cost will be 1:1 (before the costof running the scheme is included). Experience in the US, with residential and industrialinivestment tax credits for purchase of proven technologies, indicated that the "additionality"of the grant was small, implying that those who participated in the scheme would havemade the investment without the tax credit anyway. The "free rider" phenomenon iscommon among many schemes.

12. In what follows a summary of "for" and "against" for Grant-based Programs isgiven:

* Stimulates equipment/service supply industry* Can be targeted at specific groups, e.g., low income groups* Can be targeted at novel technologies and/or long payback but high return

measures* Can be driven and marketed by the supply industry*Can deliver savings if taken up

Against:

* Expensive in terms of energy savings generated* Costs can be difficult to predict/control* Distorts the market for the duration of the program, leading to long term

ulncertainties* Action not always in users' commercial self-interest* Does not guaranitee optimum uselaction* Degree of additionality uncertain* Coverage generally patchy

]Jtility-based DSM Progra ms

13. The term Utility-based Demand Side Management (DSM) covers a wide range ofactivities. The incentives for a utility to undertake a particular program are different fordifferent types of DSM. In general, Utility-based DSM programs tend to fall into one ofthree categories:

(a) Fuel Substitution Programs: In countries where there is competitionbetween (usually) gas and electricity utilities, the electricity utilities canundertake programs to promote the use of electricity over the rival fuel.Programs Xrange from research through to information, and can be aimed atincreasing market share (e.g., through promotion of infrared, ultraviolet andmicrowave technology over gas-fired ovens) or at retaining market share(e.g., increasing the efficiency of an electrical process to prevent a switch to

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gas). These types of programs tend to offer the electricity utility benefits interms of competition, but are, in general, not aimed at reducing the cost ofelectricity suipply or at saving national primary energy consumption, with itsconsequent environmental benefits.

(b) Load Management Programs: Electric utilities can implement programs toreduce the costs of supplying electricity. These programs range frompower-factor correction to those that aim to shift demand from peak to off-peak periods. In general, tariff incentives are used to encourage customersto take actions, tariff incentives including heavy maximum demand charges,through cheaper load management tariffs (i.e., interruptible tariffs) to cheapoff-peak tariffs. These programs allow utilities to reduce the costs ofsupply through using their most efficient plant and/or by maximizing systemuse and can allow the utilities to defer or avoid investment in the distributionnetwork and, in cases where there is no spare capacity, in generating plants.While these schemes reduce costs to the utility and customers, they canincrease the total consumption of electricity (for instance off-peak storagespace heaters in the UK was a market for electricity treated by this type ofprogram).

(c) Energy Saving Programs: Some DSM programs are designed specificallyto reduce consumption of electricity. In particular, there are many programsunderway in Canada, the US and Ireland. The primary objective of suchprograms is to reduce the total cost of electricity supply by undertakingDSM programs that cost less than the cost of new generating plant orelectricity purchases. The costs of this type of DSM progrm, and theirconsequent reduced.sales and profits to the utility, are usually recoveredthrough specially modified regulatory regimes.

14. The first category of program is usually part of a utility marketing program incountries where there is competition among energy suppliers. As Zimbabwe has nosignificant gas supplies, competition is limited so this category of program is not coveredfturther.

15. The second categorof program is part of running a system efficiently. It is thuspart of the business of maximizing efficiency and return on the utility's operations. It isimportant that correct metering is available and optimum tariffs are designed. It is alsoimportant that customers fully understand all the components of their electricity bill. Forinstance, unless the reason for maximnum demand metering is understood, a consumermight just accept the bill as unavoidable. In general, it is in the utility's commercial interestto pursue this category of program, and they are not discussed further, mainly becausethere is Little need for government involvement provided that the electric utility is required tooperate along commerciga lines, as ZESA is beginning to do.

16. An Energy SavirLg Utility-based DSM Program assumes that the utility is a suitableorganizatior, to expedite the use of energy efficient products. There are various factorsbehind this assumption, including the belief that utilities have permanence and a fairlysteady cash flow; a relatively low-cost capital when compared to the private sector,credibility,; close ties tD consumers; and technical skills. The vast majority of energysaving DSM programs are aimed at overcoming financial barriers to energy efficiency.However, it is clear that the costs of a DSM program and the resultant reduction in revenueneed to be recouped by the utility. In the US, where these programs are most advanced,this is usually achieved by pricing policies set by state regulators. Thus all consumers see

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a very small increase in unit electricity costs, though only those participating in a DSMprogram see an overall reduction in their total electricity bill.

17. Experience of energy-savings DSM programs has revealed some problems in theimplementation which include issues of technical expertise, participation levels, savingsachieved and cost effectiveness. These will be taken up in turn.

18. In reference to technical expertise, while utilities have historical expertise in theplanning and execution of energy supply, this is generally not the case in relation to end-use technologies. The setthig-up of an energy-saving DSM program requires the utility tohave very good market knowledge of application areas. The running of a program oftenrequires a high degree of application-specific technical knowledge. In addition,combining DSM technologies into economically attractve program packages has proved tobe a difficult task.

19. Participation level; have often been below expectations. Planners of domesticprograms, for instance, have noticed that consumers sometimes shun efficiency even whenit is accompanied by attractive incentives. Increasing participation levels, though increasingthie rebate or subsidy, can worsen the cost-effectiveness of the program. In addition,realized savings of 50-60 below original projections are not uncommon for both residentialand for mature and well-reg arded commercial and industrial programs.

20. The cost per kWh svd by an energy-savings DSM program is often higher thanoriginal predictions for three reasons: (i) savings per application do not meet expectations;(ii) reports often significarntly underestimted the true cost of programs by failing to costfilly the administrative costs; and (iii) there is a difficulty in accounting for "free riders", orconsumers who would have invested in an efficient technology without a utility program,but chose to participate to receive a subsidy.

21. In what follows a summamy of "for" and "against" for Energy Saving Utility-basedI)SM Progms is given:

• Reduces need for government intervention in the market, action being restrictedto a price regulatory role

* Positive focus on mass volume products* Can provide quick route to savings* Ensures equipmaent is available during the program* Can allow measures with rates of return lower than those acceptable to

customers to be promoted

Agains:

* Needs substantial technical and planning resources within the utility, resourcesthat are specifically expert in DSM measures

* Requires accurate knowledge of application energy use patterns and marketbehavior

* Requires a regulated price formula to recoup costs* Implementation by user is based not on a completely commercial decision,

which can lead to problems of equipment use, "free riders", and uptake* Cost effectiveness of programs is oftin underestmd, costs to the utility per

saving generated being relatively high

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* Temporary market distortion does not guarantee long term equipmentavailability

* Focuses only on sectors with electricity use, and usually only on specificproducts/technologies

$upport for Equipment Sopply Industry

:22. Many governments support research and development by allowing companies towrite off costs incurred against tax. In addition, programs exist whose main aim is tofacilitate the development and market entry of new products through direct financial supportto the equipment supply industry. This direct support serves to ameliorate the financial riskof undertaking research and often serves as a catalyst in bringing groups of interestedparties together.

23. Support for research and product development gives the possibility of energysavings in the longer term. As with any research, success cannot be guaranteed (even iftechnically successful, results might not be commercially successful). Indeed,governments usually justify involvement to stimulate risky projects, arguing that anyproduct development that is relatively risk-free should be undertaken by the private sectorwithout support. Thus, it should be expected that some projects are not successful.

24. In what follows, a summary of "for" and "against" for Support for EquipmentSupply Industra programs is given:

* Stimulates equipment supply industrySuccessful projects generate long term commercially viable activity

Against:

* Energy savings only in the long term* No guarantee; of technical and commercial success* Could be expensive compared with savings generated

Support for CEM/ESCo5

25. A Contract Energy Management (CM) company, or an Energy Service Company(ESCo), is subcontracted by a host company to take over responsibility for the operationand management of all or part of the host's energy services. The CEM company is aspecialist in providing these energy services, and so brings knowledge and capitalresources that enable improvements in the efficiency in which the energy service isprovided.

26. The basis of a CEM contract is usually a shared savings energy performancecontract, although energy service contracts and fixed fee contracts are possible altematives.The CEM companies' costs (usually capital costs and operational costs) are recovered fromthe energy cost savings over a contract period of typically five to seven years. In manycases, the host company will be guaranteed an annual cash benefit, possibly coupled withfurther bonuses should the projected level of savings be exceeded.

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27. The use of CEM comipanies attempts to tackle three barriers to the uptake of energyefficiency measures: firstly, it brings additional staff resources and knowledge to energyefficiency measures; secondly, it brings additional capital resources to a project, and oftenrepresents a means of implementing an energy saving measure that would not have beenpossible within the host's ovwn investment criteria; and thirdly, it lowers the risk to the hostof any investment, as the risk is off-loaded onto the CEM company. This latter point isusually covered by the CEM company guaranteeing a specified level of service.

28. CEM companies have been active in aUl sectors of public service, commerce andinidustry. The main focus of their activity is usually the provision of utility-type services,such as provision of steam, lighting, air conditioning and domestic hot water, and theoperation of combined heal: and power systems. CEM companies now also offer waste-heat recovery and compressed air services and are also entering into contracts for theprovision of energy to an enitire site (e.g., building, or an engineering firm). The commonfeature of these activities is that they are generally outside the "core" activities of a hostcompany, and are activities that have thus historically been neglected.

29. In what follows, a summary of "for" and "against" for Support for CEM/ESCosprograms is given:

EQn* CEM companies bring additional (private sector) technical, manpower and

financial resources to energy efficiency* Targets utility-type services, an area often neglected by companies* Can allow long payback measures to be implemented

Against:

• Needs the crea.tion of a new market, whose size is unknown (and possiblysmall), and thus carries a high degree of risk

- Relevant only to industrial, commercial and public sectors= Savings would take time to be established= Needs a change in host management culture to accept a CEM company

Legislation. Regulations aid Codes

30. The role of legislaLtion, regulations and codes in furthering the uptake of energyefficiency has been recogaized in many countries. Measures that have full legal status insome countries are voluntary codes in others, the aims and details of a particular measurebeing designed to meet a piarticular set of national circumstances.

31. Legislation, which can have the full authority of the civil and criminal system,usually sets out the framework for a particular policy objective, for example, requiringmandatory efficiency standards. The law itself does not usually specify any of the technicalor organizational details for the regulation, but will ensure that a regulation is put in place.

32. A regulation is defined as a requirement to achieve certain standards for a product orservice. Inspection will normally be required and any noncompliance noted by an inspectormust be rectified. The content of regulations will generally have been agreed in advancethrough consultation with the parties whose actions are to be regulated.

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33. A cgde is a set of working practices to which a number of parties have agreed toconform. The existence of codes is widely advertised so that potential purchasers shouldrequire a supplier to have met the code. Codes are often policed within the industry itself,for instance by a Trade Association.

34. Standards and regulations, if appropriately enforced, can ensure a continualimprovement of efficienc:y over the long term. If agreement with manufacturers can bereached, they also set a "level" playing field, in that all manufacturers are forced to improveefficiency levels and thus have commercial risk in doing in alone.

35. In what follows, a summary of "for" and "against" Legislation. Regulations andCodes programs is given:

* Guarantees energy savings in the long term if successfully implemented* Ensures a 'level' playing field for manufacturers

Against:

i Often very lorLg terme Often difficull: and time consuning to obtain agreement on the standard* Can be difficult and expensive to enforce* Limited applicability

e.g. consider a consumer who consumes 2 000 Uhils (KWh)

. ZIMBABWE ELECTRICITY SUPPLY AUTHORITY FixedMonthlyCharge $12.50First 300 Units (kWh) = (300 x 0,1200) c S 36,00301 - 760 Units (kWh) (450 x0,1532) $ 68,j4

751 - 1 000 Units (kWh) 5 (250 x 0,4596) = $114.90

1001 - 2 000 Units (kWh) = (1 000 x 0, 7660) = $766.00Total Cost = $998.34

ENERGY RATIONING SCHEME, 19921. With effect from September21, 1992 ZESA introduced a quota system (b) The Authority shall, without notice, disconnect the supplyof electrcity

and surcharges for those consumers who exceed their allocated quota. to any consumer who consumes eldctricity In excess of 2 OOOkWh Inany one month, for a period calculated by applying the fonnula:

2: Qluota System No of days = (Total Monthly Consumotion - 2 000 kWh! x 3i1.1 .Consumers will bo allocated a monthly quota of electricity adjusted to 2000

available supplies and nalional priorities. 2 A TIO2.2 LOAD L IMITED DOMESTIC CONSUMERS

1.2 ZESA will Impose a surcharge to consumers who exceed their (TARIFF CATEGORY 2) ,monthly quota, details of which are shown below.

monthly quoadeas hicaehonelw.The quota system shall not apply to these consumers as their.1.3 Consumers who exceed their monthly quota will be disconnected. consumption Is considered tobe sufficIently limited already. However,

The period of disconnection will be determined by the number of units these consumers are advised to make every effort to conserve energy.(kWh) overused. After this period such consumers shall only bereconnected after payment of dll outstanding charges and therequisite reconnection fee. . 2.3 LOW CAPACITY COMMERCIAL, INDUSTRIAL, MINING AND

1.4 Consumers who do not exceed thelr allocated quota will continue to AGRICULTURAL CONSUMERS (up to 300 kVA Supplybe charged the respective normal tariff. Capacity) (TARIFF CATEGORIES 3 AND 4)

2.1 METERED DOMESTIC CONSUMERS (TARIFF CATEGORY 1) (a) Consumers in thils category shall be limited to a monthly quotaequivalent to 70% of their respective average consumption during the

(a) Allocated Quota: 750 units (kWh): Charges: period of 12 months Immediately preceding the 21st September,(11 Fixed Monthly Charge: $12.50 1992. This Informationwill be confirmed bythelrrelevantbilling offices.(ii) Energy Consumption Charges: (b) Consumers who exceed their monthly quota shall, In additon to paying(A) Block I Tariff, First 300kWh, 0,1200 the standard charge for their electricity. quota, be llable to pay anadditional charge equivalent to 7 limes the standard charge for the(B) Block 2 Tariff, 301 - 7SOkWh: 0,1532 excess consumption.

(C) Block 3 Tariff, 751 -1 000kWh: 3 x Block 2 Tariff 2

(D)'Block 4 Balance: 5 x Block 2 Tariff... . . . ~~*..

(c) The Authwlty shall, without notice disconnec' " supply of electricityto consumers who.exceqd thelr monthly quol. .y more than 10%o, fora period of days calculated by applying the fprnula:

No. of days z (Total Monthly Consumplion -Monthly Quota) x 31 3.3 Written applications by consumers for spedal relief from the operatlon

Monthly Quota of this quota system, by reason of extraordinary hardship or Impossi-bility of compliance, may be made to the Authority throuah the Area

2.4 HIGH CAPACITY COMMERCIAL, INDUSTRIAL, MINING, ana ers at arare Buawa Gweru Mutare and CihvAGRICULTURAL AND SPECIAL TARIFF CONSUMERS 3.4 For further Information, consumers should conta'ct theilr respective(Tariff Categories 6 and 7) billing officer for clarificalion.

(a) With effect from 1 October, 1992, these consumers shall be limited to 4. Monitoring of Consumptlona monthly quota equivalent to 80% of theirrespective average monthlyconsumption during a period of 12 months Immedialely preceding the Consumers are adwised to read thelr meotrs on a daoly basis In order to1st October 1992. Consumers will be advised of their quota by their tes ayeter met or dil ter. In the cas e of ty obilling offices. types -a cyclometer meter or dial motr. In the case of the first type you

simply make a note of the digits displayed by the meter. In the latter case(b) Consumers who exceed tlIeir monthly quota shall, in addition to paying you wite down the smaller of the two digiis ihat the poln:er "es between.

the standard charge for electricity consumed, be liable to pay an In both cases ignore fractions of a unit.additional charge calculated using the following formula:

Additional Charge ($) Examples

-Total Monihly ConsumDtion-Monthlv Quotal x 0.5 x Monthly Bill . (a) Cyclometer type (b)Dial lype

0,0625 x Monthly Quota I[8_[0i5]_21ii ]Lt

(c) The Authorily shall, without notice disconnect the supply of electricity Reading: 80572 units (kWh) 4zlto any consumerwho exceeds his monthly quota by more than 6,25%,for a period of days calculated by applying the fonnul2t.

No. of days = (Total Monthly Consumtlion - Monihly Quota) x 31 \/

Monthly Quota 10000 1000 loo . l0.

3. ADDITIONAL REQUIREMENTS AND INFORMATION I(eading s 80572 pnits (kWh)

3.2 To achieve the objective of this scheme, the use of illuminated outdooradvertising signs Is prohibitedwith Immediate effect. Further, consum- N.B. Where therels a meterconstant the meterreading shouldbemulilplieders are advised to exercise circumspection in the use of security and bv the constant.decorative lighting.

In this instance the fraction of units must be taken into account.

If Ihe constant Is 10, then the reading would be 80572,4 x 10 = 805724.

Issued by ZESA aS a CommunIlty Service for Its Consumers, October, 19924

I.

ANNEX 5

COMPARISON OF THIE "OUOTA SYSTEM" AND LOAD SHEDDINGAS A MEANS OF SAVING ELECTRICITY

"Quota System" Load Shedding

1. Available electricity is used to Available electricity is not _useZimbabwe's best advantage Qp.maIIY

2. Electrcity consumers can be prioritized Important consumers are shed the sameas required: more important consumers as the many other consumers on thecan receive more electncLty same circuit

3. Consumers do not suffea- disruptive and Power cuts are costly and disruptive tocostly power cuts ZESA, ZESA's consumers and

Zimbabwe's economy

4. All consumers contribute in saving Numerous eligible consumers escapeelectricity - even essential services can load shedding if they are on the samecontribute to the extent that they are able circuit as essential servicesto

5. Consumers have every incentive to use No real encouragement for consumersavailable electricity as efficiently as to use electricity efficientlypossible

6. Electricity consumption can be planned Difficult to estimate electricalquite accurately. Consumers can not consumption based on load shed valuesshift electrical usage to times that they and load can be shiftedare not load shed

7. Essential services need not suffer load Some Essential Services on extendedshedding networks have to be load shed

8. Politically acceptable - Almost all Political dynamite - Consumers hateconsumers have requesited that they load sheddingcontrol their quota of electricity

9. More attractive option - Consumers will Substantial consumer and politicalbe more willing to assist ZESA resistance to load shedding

10. Needs a big effort - the utility to inform Easier for ZESA to set up and operateconsumers. Needs follow-up on theindividual quotas (data processingcapability)

Source: ZESA and consultants report.