Copperbelt energy eep presentation

1. Copperbelt Energy Corporation
Plc.
Ndola 10MW Biomass Power Project
Feasibility Study (in Partnership with
EEP)

2. Contents
 CEC Background Information
 Ndola 10MW Biomass Power Plant Project
Feasibility Study – ZAM219

3. CEC Background Information

4. Zambian Electricity Market
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Generation
Transmission
Distribution
Supply
Domestic market
Export market
LHPC
Mines Other
consumers
CEC
ZESCO
NE  CEC: transmits and supplies electricity
to the mining industry
 ZESCO: a vertically integrated
company which provides over 90% of
the electricity generated in the
country
 Lunsemfwa Hydro Power Company
(LHPC): produces about 50MW
 Ndola Energy (NE): Operates a 50MW
HFO Plant
 ZESCO and a number of IPPs are
developing generation projects

5. Introduction 5
Historical Background:
• CEC was formed in 1997 from
privatisation of Zambia
Consolidated Copper Mines
(ZCCM)
• Forerunners to CEC include:
• Power Division – ZCCM (post
1982)
• Copperbelt Power Company
(CPC) (post 1964)
• Congo Border Power
Company (1950’s)
2014 Awarded concession for development of 128MW HFO Plant in Freetown Sierra
Leone
Signed PPA for 128MW with Sierra Leonean Government
2013 Acquired a stake in the Abuja Electrical Distribution Company through KANN Utility
Acquired a stake in the Shiroro Hydro Power Station
2012 CEC begins early work construction for Kabompo Gorge project
2011 Joint venture agreement with Liquid Telecommunications Holding Limited to form
CEC Liquid Telecommunications Limited
2010
Awarded infrastructure investment award – 2010 “Developer of the Year"
presented by Africa Investor
2009
Signed a joint venture agreement with RTAA (Pty) Limited as well as acquired 50%
interests in Realtime Technology Alliance Africa Ltd
2008
CEC was listed on the Lusaka Stock Exchange following the flotation of 25% of its
shares to the public and employees
2006 77% of the company was acquired by Zambian Energy Corporation
1997 ZCCM Power Division was privatized in 1997 and CEC was formed
1982 Became the power division of ZCCM, following the formation of ZCCM in 1982.
1966 Company was renamed the Copperbelt Power Company
1953 Founded in 1953 as the Rhodesia-Congo Border Power Company

6. CEC Power Investments - Zambia
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Generation:
 Kabompo Gorge Hydro Scheme – 40MW (under development)
 Luapula Hydro Schemes – up to 800MW (Feasibility Studies)
Transmission:
 Copperbelt – Luapula Trans-Pedicle Line (PPP model) – to support
evacuation of power from Luapula
Renewables:
 Copperbelt Bio-mass Project (Feasibility)
 Bio-Diesel Refinery (Operatoinal - Commissioned 2011)
 Copperbelt 15MW Solar Project (Feasibility Studies)
 Kabompo 20 – 40MW Solar Project (Pre-feasibility)

7. Ndola 10MW Biomass Power Project
Feasibility Study - ZAM219

8. Ndola 10MW Biomass Power Project
Feasibility Study - Introduction
 The CEC intends to partner with Copperbelt Forestry Company
(CFC) to set up a 10MW biomass power plant to make use of the
wood waste generated from the operations of CFC and other
timber processing plants on the Copperbelt.
 The harvesting and processing of timber produces an estimated
120,000 tons (dry weight) of wood waste (biomass) annually.
This makes environmentally friendly management of this waste
eminent.
 CEC application for grant funding to undertake a bankable
feasibility study of the project through EEP was approved in 2011
on a 50/50 cost share basis with EEP contributing a sum of
€125,000
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9. Ndola 10MW Biomass Power Project
Feasibility Study - Scope
 A consultant was engaged to undertake the study and below is the summarized
scope of the study:
1. A bankable feasibility study detailing:
 A fuel feedstock supply chain strategy and biomass availability audit
 Recommended power plant size based on (MW and MWh) based on feedstock strategy
 Recommended technology to be employed (incineration, pyrolysis etc)
 Recommended power evacuation route
 A business plan for the project
 Licensing and regulatory requirements
 Identification of key project risks
2. Environmental and Social Impact Statement including:
 Impact on waste disposal problems
 Net impact on carbon cycle
 Ecological sustainability of recommended model
 Socio-economic impact including the impact of large scale harvesting to wood fuel procurement
of the local people
 Impact of desired power plant on settlements
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10. Ndola 10MW Biomass Power Project
Feasibility Study – Outcome (1)
 The feasibility study revealed opportunities and challenges for the realization of
a CEC run CHP plant fueled with woody biomass from CFC sawmilling and
forestry operations.
 The main result of the study is that a CHP plant supply can be sustained from the
available biomass resources. The sawmill waste alone could sustain supply for a
3 to 4 MW (total heating capacity) CHP plant. The total capacity that could be
installed is 7 MW if supplied from sawmill and forestry operations residues.
 If other sources (i.e. energy plantations) will be considered, capacity may
increase significantly up to 10 MW electrical capacity or more
 Power generation would be by the use of steam turbines, a highly developed
technology for applications in thermal power stations and CHP or cogeneration
plants.
 Heat generated in a combustion process is used to produce high pressure which
subsequently delivers mechanical power to drive an electricity generator.
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11. Ndola 10MW Biomass Power Project
Feasibility Study – Outcome (2)
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12. Ndola 10MW Biomass Power Project
Feasibility Study – Outcome (3)
 Find potential customers in Ndola for exhaust heat generated by 10 MWel power
plant and where applicable electricity customers
 Evaluate several incentive schemes that could become applicable for CEC (subsidy
options, government Feed-in- Tariffs, government schemes, donor cofounding and
soft loans)
 Analyse alternative technologies which could be leveraged to increase income
(pelleting, briquetting and bio-coal)
 ESIA: Employ measures to mitigate Noise and Air pollution

13. Ndola 10MW Biomass Power Project
Feasibility Study - Challenges
 Delayed land acquisition process
 Low tariffs
 Firm-up feedstock supply
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14. Ndola 10MW Biomass Power Project
Feasibility Study – Way Forward
 Conclude land acquisition process
 Submit final ESIA report to ZEMA
 Engage possible heat off-takers
 Explore market for electricity off-takers (ReFIT) PPA?
 Financing arrangements (Debt, interest free loans, grants etc)
 Investigate the possibility of setting up a managed energy
forest i.e. fast growing tree species for sustainability
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15. Ndola 10MW Biomass Power Project
Feasibility Study – Way Forward
Thank you for your attention