Stakeholders’ Workshop on RE Guidelines PRESENTATION BY: Eng. William Masocha Ag. SPDO – MOE and Eng. Nelson Banda RE Engineer – ERB

TABLE OF CONTENTS Country Overview Economic Activities Proportion of Energy Consumption by User Group Energy Resource Policy Environment and Measures Current Efforts being Undertaken Installed Generation Capacity Planned Generation Projects Zambia Power System Power Interconnector Projects Solar Conclusion

Country Overview Zambia has a total surface area of 752,614 sq. km land: 743,398 sq. km water: 9,220 sq. km Population Trends NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development Year Population 1990 7,759,161 2000 9,885,591 2010 13, 046, 508 2016 16, 594, 051

Economic Activities The main economic activities of Zambia include mining, agriculture, trading and non-traditional exports. Zambia’s GDP real growth rate (2016 estimate) stands at about 3.3% Gross Domestic Product is at US$ 1,178.39 And the GDP per capita is at US$ 19.55 billion NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Proportion of Energy Consumption by User Group NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Energy Resource

Zambia’s Energy Potential The country is endowed with hydro, solar, wind, geothermal and bioenergy resources. Zambia’s hydropower resource potential is estimated at over 6,000MW. Biomass – agriculture waste, forestry waste, industrial/municipal organic waste, energy crops and products and animal waste.

Energy Resource Potential Cont’d… Solar – Potential energy out put per unit area (radiation) average 5.5kWh/m²/day (MEWD,2008) which is significant for solar thermal & photovoltaic exploitation Geothermal – More than 80 hot springs occurrences associated with deep seated faults and fracture system in Zambia. 35 were rated high in terms of surface water temperature, flow rate. One private company currently doing exploration drilling with 10 MW potential in the area under exploration

POLICY PERSPECTIVE

Policy Environment Energy Policy of 2008 Vision 2030 Electricity Act (Liberalized Power Sector - Private Players in Generation, Transmission and Distribution) Open Access Regime - Grid Code sets framework for equitable access to transmission network by all IPPS Energy Regulation Act Rural Electrification Act Vision 2030 To increase rural electricity access to 51% by 2030 Urban areas access to 90% by 2030 To expand the deployment and development of renewable energy sources in the country’s energy mix from < 2% to 15% by 2030 Example of Kinangop wind

Policy Environment Cont’d… REFIT strategy Government with the help of SATH and USAID has developed a Renewable Energy Feed-in Tariff strategy (REFiT) to promote investments in Renewable Energy development. REFIT strategy aims at implementing at least 200 MW from renewable energy in the next 3 years Get FIT Programme Based on REFIT Strategy, Government with the assistance of KFW (Germany Development Bank) is working on the development of the Global Energy Transfer Feed-in Tariff (GET FiT) mechanism, to leverage tariffs for projects to be developed under the REFiT strategy Example of Kinangop wind

Revision of Electricity and Energy Regulation Acts Policy Initiatives GRZ working on the UN Sustainable Energy for All Initiative to support three interlinked objectives of; providing universal access to modern energy services, Doubling the global rate of improvement in energy efficiency, Doubling the share of renewable energy in the global energy mix. SE4ALL Initiative GRZ with support from World Bank is developing a resource map indicating the country’s solar and wind resource potential to guide investments on suitable locations Renewable Energy Resource Map Revision of Electricity and Energy Regulation Acts Government has initiated a process on the electricity sector reforms to: to identify the evolution of the Electricity Sector in Zambia over the short-, medium- and long-term, and; give context and direction to the policies envisaged towards a viable sector Sector Reforms Programme aims to help low income countries use new economic opportunities to increase energy access through renewable energy use Total amount of up to $40 million made available for Zambia to assist private sector power project financing, of which $18 million is a grant and $22 million is a concessional loan Currently the government is in the process of preparing an investment plan for the programme Scaling Up Renewable Energy Program for Low Income Countries (SREP) Reviews of Electricity and Energy Regulation Acts are on-going to take account of emerging issues in the energy sector Example of Kinangop wind

ELECTRICITY GENERATION

Electricity Generation and Access Electricity installed capacity is 2, 878.6MW 85% is hydro based 13.3% thermal (Coal, HFO and Diesel) and, 1.7% renewable comprising of solar and small hydros Access: National = 31.4%, Urban = 67%, Rural = 4.5% Example of Kinangop wind

Installed Power Generation Name of Power Plant (including off-grid renewable energy) Technology Type Capacity (MW) ZESCO - Kafue Gorge Hydro 990 ZESCO - Kariba North 720 ZESCO - Kariba North extension 360 ZESCO - Victoria Falls 108 ZESCO - Lunzua River 14.8 ZESCO – Lusiwasi 12 ZESCO - Chishimba Falls 6 ZESCO - Musonda Falls 5 ZESCO - Shiwang'andu 1 Itezhi-tezhi Power Corporation 120 Zengamina Power Limited 0.75 Lunsemfwa Hydro Power - Mulunguishi 31 Lunsemfwa Hydro Power - Lunsemfwa 25 Maamba Collieries Limited - Maamba Coal 300 CEC Plc – Bancroft Diesel 20 CEC Plc – Luano 40 CEC Plc – Luanshya 10 CEC Plc – Mufulira Ndola Energy Company Limited Heavy Fuel Oil 105 Rural Electrification Authority Solar 0.06 Total 2,878.6 Example of Kinangop wind

Power Plants under Construction Name of Power Plant (including off-grid renewable energy) Technology Type Developer Capacity (MW) Status Kafue Gorge Lower Hydro ZESCO Limited  750 Under implementation Kabompo Gorge Hydropower Project CEC Plc  40 Working towards achieving financial close Kalungwishi Hydropower project Lunzua Power Authority Limited  255 Environmental impact assessment phase Scaling Solar Project Solar Neoen and First Solar Inc., Enel Green Power, and IDC 100 Muchinga Hydroelectric Project Lunsemfwa Hydropower Company Limited  180 Negotiating with the government for Implementation Agreement Total Capacity 1,325 NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Planned Generation Projects No. NAME OF SITE CAPACITY (MW) RIVER STAGE / STATUS OF SITE DEVELOPER 1 KABOMPO GORGE 40 KABOMPO Pre-Construction CEC 2 KABWELUME FALLS 96 KALUNGWISHI Implementation Agreement (IA) signed Lunzua Power Authority 3 KUNDABWIKA FALLS 151 IA signed 4 CHAVUMA FALLS 14 ZAMBEZI Feasibility/IA negotiations SINOHYDRO 5 CHANDA FALLS KASHIJI 6 NGONYE FALLS 130 Feasibility/IA signed WESTERN POWER LTD 7 MUCHINGA 230 LUNSEMFWA Feasibility LHPC 8 LUFUBU 163 (326) LUFUBU POWER LTD 9 LUCHENENE 34 Pre-feasibility POWER MIN ZAMBIA LTD 10 MUTINONDO 43 11 MULEMBO/LELYA 330 MULEMBO Prefeasibility MCHIMADZI LTD 12 MWAMBWA 85 Electra 13 MAMBILIMA FALLS I 126 LUAPULA IGMOU/Feasibility GRZ/DRC MAMBILIMA FALLS II 202 15 MAMBILIMA FALLS V 372 16 MUMBOTUTA FALLS 490 17 BATOKA GORGE 1,600 (2,400) ZRA 18 DEVIL'S GORGE 1,000 19 MPATA GORGE 543 20 KAFUE GORGE LOWER 750 KAFUE Construction ZESCO Total (MW) >6000

Zambian Power System TANZANIA MALAWI ANGOLA MOZAMBIQUE NAMIBIA To Sumbuwanga 8o TANZANIA MPULUNGU MBALA LUNZUA MBEYA KASHIKISHI KALUNGWISHI MPOROKOSO CONGO (DR) KALUNGWISHI RIVER CHISHIMBA FALLS NAKONDE MAMBILIMA KASAMA MUSONDA FALLS LUWINGU ISOKA CHAMBESHI RIVER MANSA CHINSALI MALAWI WEST LUNGA RIVER AT MWINILUNGA (3.5MW) MICHELO SAMFYA MOMBUTUTA ANGOLA LUAPULA RIVER SOLWEZI LUANO KANSUSWA LUAPULA RIVER LUAPULA RIVER LUSIWASI LUNDAZI CHAVUMA FALLS (20MW) KITWE MPIKA KABOMPO RIVER AT KABOMPO-MANYINGA BRIDGE (0.10MW) PENSULO SERENJE MAPOSA CHIKATA FALLS (10MW) LUFUBU RIVER AT KASEMPA BRIDGE (0.23MW) MFUE MKUSHI MPONGWE ZAMBEZI KAPIRI CHIPATA MSORO LUNSEMFWA KABWE AZELE LUKULU KALABO KAFUE RIVER MUMBWA MULUNGUSHI PETAUKE KAOMA LUSAKA WEST 33.5o East MONGU LEOPARDS HILL MOZAMBIQUE KAFUE TOWN KAFUE LOWER LUANGWA KAFUE WEST CHIRUNDU ZAMBEZI RIVER ITEZHI - TEZHI KAFUE GORGE PROPOSED POWER STATIONS POWER STATIONS KEY 330 kV 220 kV 132 kV 88 kV 66 kV PROPOSED SUBSTATIONS SUBSTATIONS PROPOSED LINES DIESEL STATIONS km 1941 348 77 717 2791 SENANGA MAZABUKA KEY km KARIBA NORTH (120MW) KARIBA SOUTH LAKE KARIBA MUZUMA 22o East SESHEKE VICTORIA FALLS KATIMA MULILO NAMIBIA 18o ZIMBABWE BOTSWANA DIESEL STATIONS

Power Interconnector Projects

Power Interconnector Projects In order to promote electricity trade, enhance security of power supply, foster regional economic integration and stimulate investment in power stations Zambia is promoting regional interconnectivity through the following projects; Zambia-Tanzania-Kenya Power Interconnector Zambia-DRC Second 220 kV line (CEC) Solwezi-Kolwezi 330 kV line (ZESCO) Zambia-Malawi 330 kV line (ZESCO) Zambia-Mozambique 330 kV line (ZESCO) ZIZABONA Power Interconnector NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

SAPP Transmission Projects Example of Kinangop wind

Zambia’s Renewable Energy

Solar Projects There are two methods which the government has prescribed as a means of procuring Solar energy technologies for grid integration which are the Scaling Solar initiative and the Renewable Energy Feed-in Tariff (REFiT) Strategy. 1.1 Scaling Solar initiative Scaling Solar is an initiative being driven by the Industrial Development Corporation (IDC) to procure utility scale solar power plants with the support of the International Finance Corporation (IFC – WB) 600 MW of utility scale solar PV power plants planned under this process Round 1 targeted procurement of 2 X 50 MW of utility scale PV plants. The tender for development of two projects was awarded to REIPPs namely Bangweulu Power Company Limited (NEOEN of France & First Solar Inc. of USA) Ngonye Power Company Limited (Enel Green Power of Italy) The winning bids were for US¢ 6.02 kWh and US¢ 7.84 kWh respectively. NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Solar Projects Cont’d… The Energy Regulation Board has so far granted regulatory approvals to the project developers for a) Environmental impact assessment in collaboration with ZEMA b) Standardized Power Purchase Agreements c) Investment Endorsements 1.2 Scaling Solar initiative Round 2 Procuring of up to 250 MW grid-connected utility scale solar projects under Round 2 recorded 21 bids during a tender for pre-qualification. An evaluation process resulted in 12 Bidders being Pre-Qualified as responsive IPPs to be considered as possible Developers of the Utility- Scale PV Solar plant projects in Zambia NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

List of Shortlisted Bidders to Round 2 No Bidder’s Name Country (Domicile) 1  Scatec Solar ASA  Norway 2  Nareva Holding  Morocco 3  Acciona Energia S.A- Swicorp Company-Enara Bahrain  Spain, KSA 4 Access Eren JGC Zambia IPP Consortium  France, Japan, UAE 5  Mitsui & Company Limited  Japan 6  Engie Global Developments B.V.  Netherlands 7  Globeleq – FRV Consortium  UK, Netherlands 8  Enel Green Power SPA  Italy 9  TATA Power Company Limited  India 10  Neoen & First Solar  France, USA 11  TOTAL Mulilo Zambia Consortium  France, South Africa 12  EDF Energies Nouvelles  France NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Second Method for Solar Procurement 2.1 REFiT Strategy The Zambian REFiT Strategy is designed to provide price certainty to renewable energy generators. The Strategy covers a number of technologies including; hydro, solar, biomass, waste to energy, geothermal, wind and biogas. This Strategy was just recently approved. Project sizes under the REFiT Strategy are capped between 500 kW minimum to 20 MW maximum. the following broad objectives are provided for under the first three (3) year period: a) To provide for a REFiT generation allocation of initially 200 MW divided into 100 MW hydropower and 100 MW non-hydropower; b) Each project under (a) should have a maximum generation capacity of 20 MW c) To provide for a REFiT micro-generation allocation of initially 10 MW; and d) To provide a platform for the second REFiT phase. NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Second Method for Solar Procurement Cont’d… In order to facilitate for grid interconnected Renewable Energy generation projects under the REFiT, the ERB has since developed the following regulatory tools: a) Guidelines: Support Mechanisms and Regulations; b) REFiT Rules; c) Standard Power Purchase Agreements; for REFiT projects; d) Generation License; e) Grid connection Guidelines; and f) Model Grid Connection Agreement. 2.2 GET FiT Programme The GET FiT which is dependent on Government signing the REFiT Strategy will operationalise the implementation of the REFiT. This will be done by providing a subsidy to the developers that will win the tenders through an auction. NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Current Status The GET FiT programme is currently on the Standardised document development stage. Draft Standardised documents done (PPA, IA, CA, Standard Guarantee etc.) Submitted to relevant stakeholders for comment and review Ministry of Energy to submit final draft to Attorney General First Solar Tender planned to end of 2017 The First Phase to tender up to 50MW with an option to increase The Programme will offer an upfront payment of 50% on the tariff top-up to the successful bidders Reverse Auction Tender process will be used and REFiT tariffs set as Caps. First project expected to be online by end of 2019 or early 2020. Second phase earmarked shortly after the first phase has been concluded NEAP poorly implemented. Before then decision making within PPPs viewed environment as obstacle to development

Conclusion Zambia’s aim is to become a hub for both power Generation and Transmission. Through,, the various projects outlined in this presentation, we hope and believe that it can be achieved in next 7 to 10 years Example of Kinangop wind