1. MINISTRY OF ENERGY AND WATER DEVELOPMENT INVESTMENT OPPORTUNITIES IN THE ENERGY SECTOR Name: Patrick Mubanga Venue:Pamodzi Hotel Date:26 th January 2010

2. Presentation outline 1.Energy Profile 2.Overview of the Power Sector 3.Investment Opportunities

3. Map of Southern Africa

4. 1.0 Energy Profile The principal source of energy in Zambia is wood fuel (i.e. firewood and charcoal), with the largest consumer group being households in both rural and urban areas. Despite abundant hydro-power generation potential, only 20% of the population has access to electricity. -Urban48% -Rural 3%

5. Energy Profile cont… Petroleum ranks Second in terms of national energy requirements (12%). The largest consumer is the transport sector, followed by mining. Coal accounts for 5% of national energy requirements: the largest consumer is the mining industry, followed by the manufacturing sector The huge potential for renewable energy sources such as solar, biomass, geothermal among others remains largely untapped.

6. Supportive Policy and Institutional Framework 1.New Energy Policy 2.Rural Electrification Master Plan 3.Power System Master Plan 1. 1217 Rural Growth Centres identified 2.Technology options (Grid, Solar and Mini hydro) 3.Annual budget USD50 million up to 2030 4. National Access 65.9% (90%Urban and 50.6% Rural Area) by 2030 1.Prioritization of projects in terms of Generation, Transmission ( Interconnectors ) and Distribution 2.Costings 3.Policy recommendations

7. 2.0OVERVIEW OF THE POWER SECTOR a.ZESCO LIMITED 1.KAFUE GORGE 990 MW 2.KARIBA NORTH BANK 720 MW 3.VICTORIA FALLS 108 MW 4.SMALL HYDROS 24 MW 5.THERMAL PLANTS 8 MW 6.TRANSMISSION LINES: 330kV, 220kV, 132kV, 88kV & 66kV NETWORKS 7.HV SUBSTATIONS, 1 NATIONAL CONTROL CENTRE 8.DISTRIBUTION NETWORK: 66kV, 33kV, 11kV & 400V b. COPPERBELT ENERGY COMPANY 1.TRANSMISSION LINES: 220kV, 66kV 2.DISTRIBUTION AT VARIOUS VOLTAGES 3.GAS TURBINES80 MW c.LUNSENFWA HYDROPOWER COMPANY MULUNGUSHI + LUNSEMFWA40 MW Potential capacity 6000 MW Total Installed capacity 1948 MW

8. D R CONGO TANZANIA MALAWI MOZAMBIQUE ZIMBABWE NAKONDE KASAMA ISOKA CHINSALI MPOROKOSO LUWINGU MPIKA PENSUL O SERENJE CHIPATA CHIRUNDU LEOPARDS HILL KARIBA SOUTH MUSONDA FALLS (5MW) LUSIWASI (12MW) MULUNGUSHI (20MW) MSORO LUNDAZI MFUE AZELE LUNSEMFWA (18MW) CHISHIMBA FALLS LUNZUA (0.75MW) MBALA SAMFYA KASHIKISHI PETAUKE MOMBUTUTA CHIENGI LUAPULA RIVER To Sumbuwanga KALUNGWISHI RIVER MPULUNGU NAMIBIA BOTSWANA ANGOLA KALAB O MONGU SENANGA SESHEKE SOLWEZI ITEZHI – TEZHI (120MW) VICTORIA FALLS (108MW) MUZUMA MICHELO LUANO KITWE MAPOSA KANSUSWA KABWE KAPIRI MPOSHI MPONGWE LUSAKA WEST KAFUE WEST KAFUE TOWN KAFUE LOWER (750MW) KAFUE GORGE 900MW(1080MW) KARIBA NORTH (600MW(750MW) LAKE KARIBA MAZABUKA MUMBWA MANSA MAMBILIMA KAFUE RIVER ZAMBEZI RIVER CHAMBESHI RIVER WEST LUNGA at West Lunga River (2.5MW) KASEMPA CHIKATA FALLS (3.5MW) MUFUMBWE LUKULU KAOMA 220kV 22 o East 33.5 o East 8o8o 18 o KATIMA MULILO ZAMBEZI LUANGWA 132kV 88kV 66kV 330kV EXISTING POWER\SUBSTATIONS AND POWER LINES PROPOSED POWER\SUBSTATIONS AND POWER LINES 330kV 220kV 132kV 88kV 66kV HYDRO POWERSTATION SUBSTATION DIESEL STATION PROPOSED HYDROPOWERSTATION PROPOSED SUBSTATION PROPOSED DIESEL STATION CHONGWE CHAVUMA KABOMPO MWINILUNGA KANSANSHI LUMWANA (Mine) KAPUTA NCHELENGE CHAMA KUNDABWIKA (101MW) KABWELUME (62MW) KAWAMBWA TEA MBERESHI LUSIWASI EXTENSION (40MW) KARIBA NORTH EXTENSION (600MW(750MW) BATOKA GORGE (800MW) DEVILS GORGE (800MW) BWANA MKUBWA ROMA COV. NAMPUNDWE MAAMBA KATIMA MULILO KABOMPO Gorge (34MW) Luangwa Bridge Mkushi Farm Block Mkushi Central Kawambwa Town Chambasitu SHANGOMBO MUYOMBE ZAMBIAN GRID (66 – 330kV)

9. Pictures Existing Lusiwasi Hydro power station (12MW) Kariba Dam ( Kariba North Bank (720 MW) + Plus extension (360 MW) Chishimba Mini hydro ( 6MW) Existing ITT spillway ( Proposed site - ITT 120 MW)

10. INVESTMENT OPPORTUNITIES

11. Hydropower potential No.DescriptionCapacity (MW)Estimated Cost (US$ ) million Status 1.Kafue Gorge Lower6001500Open for investment {IFC as a transaction adviser} 2.Batoka Gorge 16002500Open for investment 3.Kalungwishi River210600 Open for investment 4.Devil’s Gorge 12001450Open for investment 5.Lusiwasi Extension40100 Open for investment 6Mpata Gorge500839 Open for investment 7.Lupula River (Mombotuta,Mambilima) 8502,500 Open for investment

12. Batoka Gorge

13. Zambia-Tazania-Kenya Interconnector Project 1.Distance: 1 600 kms (Pensulo - Zambia to Nairobi-Kenya) 2.Routing: Pensulo-Mbeya-Singinda- Arusha-Nairobi 3.Capacity: 200 MW (increasing to 400 MW) 4.330 kV Double Circuit 5.Cost Estimates: - US$ 358 Million (Phase 1: 200 MW) - US$ 302 Million (Phase 2: 400 MW) 6.Possible Extensions: Tanzania- Rwanda, Kenya-Uganda, Rwanda- Eastern DR Congo Serenje Mbeya Singinda Arusha Nairobi Dar es Salaam 700km 487km 260km ZAMBIA

14. Petroleum and Gas Based on the Microbial Testing of the soil samples obtained in the following provinces, North Western, Eastern, Western, Northern and Southern, Oil and Gas exploration has commenced. The country has since been divided into 41 Oil Blocks for purposes of awarding tenders for exploration of oil and gas in Zambia.

15. Petroleum and Gas cont… Downstream -there is potential for long- term commingled feedstock supply every 2 years. There are also opportunities in construction of a new refinery and/or partnering with government in investment in the existing plant Also construction and rehabilitation of fuel storage depots to assist the country store the much needed fuel strategic reserves.

16. Coal and Uranium Zambia’s proven reserves of coal justify the development of coal fired power plants (79 million tonnes in Maamba, Southern Province ) The estimated investment in modern coal fired power plants is estimated to be between US$2 million and US$ 3 million per MW.

17. Coal and Uranium cont… Exploration studies are known to cost anything in the range of US$ 7 million to US$ 15 million for medium scale mines and over US$ 15 million for large scale mining operations. Uranium mining is another prospective area for investment.

18. Biofuels Zambia has :suitable climate; 30% of fresh water in SADC Region and 42 million hectares of arable land. There’s potential for both biodiesel, ethanol and subsidiary industries related to their production.

19. Biofuels cont… Investment opportunities: 1.Feedstock production, refining and blending. 2.Other opportunities are in cogeneration and gel fuel production. 3.Importation of technologies to harness renewable energy sources such as solar, wind, geothermal, biomass and small hydro. 4.Setting up manufacturing plants for renewable energy technologies such as wind mills, biogas digesters solar systems and gasifiers among others.

20. THANK YOU FOR YOUR ATTENTION