IEEJ：August 2016 © IEEJ2016

IEEJ:August 2016

JICA KNOWLEDGE CO-CREATION PROGRAMENERGY POLICY FORMULATIONCOUNTRY REPORT – ZAMBIA(YEAR 2016)
DAVID CHIFUNDO PHIRIPROJECT ENGINEERTOKYO INTERNATIONAL CENTRE
JAPAN29th May – 25th June 2016

IEEJ：August 2016 © IEEJ2016

COUNTRY INFORMATIONOVERVIEW OF ENERGY SECTOR IN ZAMBIALEGISLATION IN ENERGY SECTOR Strategies and Papers in the energy Sector
 Energy Policies in Zambia• The 2008 National Energy Policy

THE ELECTRICITY SECTOR IN ZAMBIA Electricity Sources in Zambia
 Operational Hydropower Stations
 Operational Thermal Power Stations
 Hydropower Projects
 Transmission ProjectCHALLENGESAREAS OF INTEREST/OPPPI

2Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016•

Landlocked country in Southern Africa with a tropical climate•

Lies between latitudes 8° and18°S, and longitudes 22° and 34°E•

Formerly Northern Rhodesia, independent 1964•

One of the world's fastest economically reformed countries; world bank 2010

•Soccer: 2012 Africa Cup of Nations winners/OPPPI

3Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

Source: www.vidian.com/zambia-3d-map/•

Land area 752,618 sq km•

73 Ethnic groups with English as the official language•Industry mining (copper), agriculture, construction, tourism, chemicals and food processing•

Has a Population of 16 452 896 as at 1st January 2016•

And the GDP stood at US$ 27.07 Billion (2014, World Bank)/OPPPI

4Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016/OPPPI

5Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016• National Energy Policy (2008)• The Electricity Act (No. 15 of 1995)• Energy Regulation Act (No. 16 of 1995)• Petroleum Act (No. 8 of 1995)• Petroleum (Exploration and Production) Act (No 10 of 2008)• Zambia Tanzania Pipeline Act (No 18 0f 1967 and No. 13 0f 1994)• Rural Electricity Authority Act (No. 20 of 2003)• The Grid Code (Statutory Instrument No. 79 of 2013)• Water Resources Management Act (No. 21 of 2011)/OPPPI

6Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016• Vision 2030
• Sixth National development Plan
• Power System Development Master Plan (2003 – 2030)• Transmission system development master plan
• Framework & Package of Incentives for private sector Participation inHydropower and Transmission Lines Development (1998)• Renewable Energy strategy (under development as at April 2016)• Rural Electrification Master Plan/OPPPI

7Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016• The First National Energy Policy (NEP) was adopted by Cabinet in 1994o It sought to promote optimal supply and utilisation of energyo Socioeconomic development in a safe and healthy environment• Second National Energy Policy was in 2008o It set out Government’s intentions that were aimed at ensuring that thesector’s potential to drive economic growth and reduce poverty was fully
harnessed.

o It went on to include an implementation strategy, with an action plan forimplementation.

/OPPPI

8Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

Diversification of the country's energy mix through use of Renewable Energy• Energy from various sources which are dependable at lowest economic, financial,social and environmental costs consistent with national development goals (6NDP,Vision 2030, Renewable Energy Strategy, GET FiT/RE FiT strategies)• Expand generation and transmission capacity to 4,337MW by 2030 (PSDMP, Vision

2030 and Framework & Packakge of Incentives for private sector Participation inHydropower and Transmission Lines Development)• Increase access to electricity. 91% in Urban and 51% in rural, and 66% national widelevel by 2030 (REMP, vision 2030, PSDMP,SE4ALL)• Uniform Petroleum Pricing (UPP) implemented• Development of 4 Strategic Petroleum Depots (Lusaka, Solwezi, Mongu and/OPPPI

9Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016• Solar & Wind resource mapping are on-going• SI No. 32 & 33 of 2008 Tax waiver offered on energy efficient equipment• Review of Second National Energy Policy• Plans are in infancy to review the 2008 National Energy Policy• Incorporation of the Renewable Energy Strategy• Review of the OPPPI guidance document: Framework & Package of Incentives forprivate sector Participation in Hydropower and Transmission Lines Development(1998)/OPPPI

10Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

Industry
5%/OPPPI

11Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

SourceDetails

Hydropower

Installed capacity 2,318MW• Potential 6,000MW

Biomass

40MW by Zambia Sugar Company
1MW project under development by CEC

ThermalAbundant Coal reserves• 300MW Maamba under construction• 340MW EMCO under feasibility study

Geothermal

Kalahari Power• 10MW potential as indicated by initial studies

Solar

Solar insolation of 5.5 kWh/m2/day• Mpanta at MW for REA• IDC 300MW• MEWD 300MW

Wind

Wind Resource Mapping on-going• average speed of 2.5 m/s/OPPPI

12

Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

StationCapacity (MW)

Type

Owner

Kafue Gorge Upper

900

dam

ZESCO

Kariba North Bank600

dam

ZESCO

Kariba North Bank Extension

360

dam

ZESCO

Itezhi-Tezhi

120

dam

ZESCO

Victoria Falls

108

run-of-river

ZESCO

Mulungushi

32

dam

LHPCLunsemfwa

24

dam

LHPC

Lunzua14.8

run-of-river

ZESCO

Lusiwasi

12

dam

ZESCO

Chishimba Falls

6

run-of-river

ZESCO

Musonda Falls

5

run-of-river

ZESCO

Shiwa Ngandu

1

run-of-river

ZESCO

Zengamina

0.7

Run-of-river

Zengamina/OPPPI

13

Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

StationCapacity (MW)

Type

Owner

Ndola HFO

50

HFO

Ndola Energy Company

Zambezi

2.35

Diesel

ZESCO

Kabompo1.55

Diesel

ZESCO

Mwinilunga

1.5

DieselZESCO

Lukulu1.5

DieselZESCO

Luangwa

1.5

Diesel

ZESCO

Shangombo

1Diesel

ZESCO

Chavuma1

Diesel

ZESCO

Mufumbwe

0.9

Diesel

ZESCO

Nakambala40

Biomass

Zambia Sugar/OPPPI

14

Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

No.

Name of Site

River

Capacity (MW)

Status Of Site

Developer

1.

Kabompo Gorge

40

KabompoPre-construction

CEC

2.

Kabwelume Falls

96

Kalungwishi

IA Signed

LPA

3.

Kundabwika Falls

151

Kalungwishi

IA Signed

LPA

4.

Chavuma Falls

14

Zambezi

Feasibility

Sinohydro

5.

Chanda Falls

1

Kashiji

Feasibility

Sinohydro

6.

Ngonye Falls

40

Zambezi

Feasibility

Western Power Ltd

7.

Muchinga

230

Lunsemfwa

Feasibility

LHPC

8.

Lufubu163

LufubuFeasibility

LPC

9.

Luchenene

34

LuchenenePre-feasibility

Power Min Zambia

1o.

Iyendwe80

LufubuPre-feasibility

Trans-sahara

11.

Mwambwa

85

Mwambwa

Pre-feasibility

Eleqtra12.

Mutinondo

43

Mutinondo

Pre-feasibility

Power Min Zambia

13.

Mulembo/Lelya

330

MulemboPrefeasibility

Mchimadzi Ltd

14.

Mambilima Falls I

126

LuapulaIGMOU/Feasibility

GRZ/DRC

15.

Mambilima Falls II

202

LuapulaIGMOU/Feasibility

GRZ/DRC

16.

Mambilima Falls V

372

LuapulaIGMOU/Feasibility

GRZ/DRC

17.

Mumbotuta Falls

490

LuapulaIGMOU/Feasibility

GRZ/DRC

18.

Batoka Gorge

2,400

Zambezi

Feasibility

ZRA

19.

Devil's Gorge

1,000

Zambezi

Pre-feasibility

ZRA

20.

Mpata Gorge

543

Zambezi

Pre-feasibility

ZRA

21.

Kafue Gorge Lower

750

Kafue

Pre-implementation

ZESCO/OPPPI

15

Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016/OPPPI

16

Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016• Increased power Interconnections across Africa;√NEPAD objective√Extended power pool√

Enhance security and reliability of electricity supply√Consequently link with the Pan Arab Interconnector via Ethiopia – EgyptInterconnector• Encourage investment in new generation by linking generating companies withcustomers through provision of power transmission capacity;√

Extended Market√

2400MW

Batoka,1000MW

DevilsGorge,

543MW

MpataGorge,

1190MW

Luapula/Mubotuta• Enhance electricity Trade and Foster Economic Development√/OPPPI

Increased access to Electricity through Rural Electrification
17

Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

Namanga - Isinya
96km, 400kV
Construction to started in March,
2016
Financed by AfDB and GoK

SAPP/EAPP Interface

US$ 50M

2 Options

To be completed in 2018

HVDC Back to Back
US$ 520million

Singida – Namanga

Resistant to fault propagation

414km, 400kV

FACTConstruction was planned tocommence in March, 2016

US$ 320million

Financed by AfDB and JICA

Susceptible to fault propagation

Cost US$ 91M
construction to be completed in2017

Pensulo - Kasama
381km, 330kV
Single Circuit line

Iringa – Singida

Commissioned in December,
2015

442km, 400kV
Financed by World bank, JICA, AfDB andEIB

Cost of US$ 153 million

To be completed in 2018

Tunduma – Mbeya
100km, 400kV

Mbeya - Iringa

Feasibility study in progress

292km, 400kV

FS to be completed in 2016

Feasibility study completed inKabwe – Mbeya

Under Feasibility Study

To be commissioned by 20192012

Kabwe - Pensulo
330kV line
Single circuit line existingFeasibility studies underway
for the second line

Kasama – Nakonde

World Bank and AFD haveexpressed interests

243km, 330kV

Estimated US$ 110 million

Zambia is sourcing funds
Tender documents have been
prepared.

No funding for second Line(ZTK)

Estimated cost is USD 200M

/OPPPI18Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

 Rapid growth in the energy sector
 Inadequate community sensitisation on tariffs and costof producing power Low financial capacity by Independent Power Producers
 Inadequate local financing institutions/OPPPI

19Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

 Policy formulation

 Energy markets

 Financing models for energy projects/OPPPI

20Thursday, 04 August 2016

IEEJ：August 2016 © IEEJ2016

ありがとうございました
Thank You

/OPPPI

21Thursday, 04 August 2016

Contact : report@tky.ieej.or.jp