The Potential of Renewable Energies for Socio-Economic Development in Zambia

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The Potential of Renewable Energies for Socio-Economic Development in Zambia

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  • 1. SOUTHERN BIOPOWER LD.The Potential of RenewableEnergies for Socio-Economic Development in Zambia Presentation by Dr. Thomas KrimmelBritish Council – Zambia 2012: Shaping our Future 29 March 2012
  • 2. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 2 HYPOTHESES Water and Energy are the most important factors for development in the 21st century, not only in Africa. The conventional way these challenges are addressed (ie through overexploitation of natural resources) directly leads to a collapse of world civilisation. Various forms of renewable energies are already used in Zambia. But only major hydropower plants play a significant role in the energy mix in the country. Other forms of renewable energies are grosslySOUTHERN BIOPOWER LD. neglected, but have the potential to become a major driving force for socio-economic development. This, however, requires that Government and citizens recognise the role of RE and helps to promote their application and economic viability.
  • 3. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 3 Biofuels: Biodiesel Diesel consumption is more than double the consumption of Petrol, in particular because of mining and transport sectors. Jatropha and palm oil have been identified as the most suitable feedstock. Jatropha has failed as a plantation crop, but it provides good additional income opportunities for smallholders all over the country, however at high cost for mobilisation. Because of the less capital intensive processing technology, biodiesel could more easily be produced bySOUTHERN BIOPOWER LD. decentralised facilities in all districts (as against ethanol). The blending of diesel is foreseen at a ratio of up to 5%. However, at current diesel prices, the production of biodiesel is not economically viable.
  • 4. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 4 Biofuels: Ethanol Sugar molasses are the preferred feedstock for Ethanol, as they are readily available in large quantities from the 3 main sugar factories. But sweet sorghum and cassava are even better suited for decentralised smallholder production, because they do not depend on irrigation. However, ethanol distillation is a highly capital intensive and energy intensive production technology. While theSOUTHERN BIOPOWER LD. main sugar producers are waiting for favourable prices, practically no ethanol is produced in the country so far. Government has put in place a biofuels policy with a voluntary blending ratio of 10% of ethanol into petrol and is considering an appropriate pricing mechanism.
  • 5. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 5 Major Hydropower With Hydropower accounting for almost 99 percent of electricity production, Zambia is one of the countries with the highest share of renewable energy for electricity. Electricity is predominately consumed by the mines, while only 23% of the population have access to electricity. The projected electricity demand growth is estimated at 100 MW per annum, leaving the country with a power deficit since 2008, until 2019 and possibly beyond. There is still No. Description Capacity (MW) Type a large po- 1 Kafue Gorge 900 HydroSOUTHERN BIOPOWER LD. 2 Kariba North Bank 600 Hydro tential for 3 Victoria Falls 108 Hydro hydropower, 4 Lunsemfwa & Mulungushi 38 Hydro 5 Small Hydros 24 Hydro but at a sub- 6 Isolated Generation 10 Diesel stantial cost. 7 Gas Turbine (stand by) 80 Gas Total installed capacity 1,760
  • 6. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 6 The Potential for Minihydro While the current focus is rather on big schemes, only a small proportion of the potential for mini Hydropower is tapped. Small schemes would offer great advantages such as Allowing the service of isolated minigrids in new areas Substantially lower environmentalSOUTHERN BIOPOWER LD. and social risks/cost Substantially lower investment cost, allowing local investors to participate
  • 7. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 7 Co-generation in Sugar Factories The 3 Sugar companies would be among the most promising IPPs outside hydropower. Their potential for co- generation is from Bagasse which is a byproduct with high calorific value, but no nutrient content. Sugar companies have started to use the bagasse in low pressure burners (usually 20 bars) to produce their own electricity and steam. However, the potential is far greater, if high pressure boilers (60-82bars)SOUTHERN BIOPOWER LD. would be installed. But this is only economic, if cost reflective feed-in tariffs are guaranteed.
  • 8. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 8 Solar and Wind Power The potential energy output for solar is about 4-5 kWh/m2/day. However, considering the relatively high investment cost, there is only a relatively modest economic potential for photovoltaic use on grid. The average wind speed of 2.5m/s in the country is even less economic for electricity generation. Therefore the effective utilisation of solar and wind power is limited, and mainly restricted to: Isolated public facilities, with relatively low con-SOUTHERN BIOPOWER LD. sumption (schools, clinics); Pump irrigation; Hot water boilers/geysers.
  • 9. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 9 Is woodfuel a renewable energy? In 2007, woodfuel accounted for over 70% of total national energy consumption, mostly for cooking and heating as the major uses of woodfuel as household energy. Woodfuel is theoretically a source of renewable energy, but consumption rates are exceeding yield rates, mainly as a result of inefficient production and use, and the increasing population. Deforestation is progressing at anSOUTHERN BIOPOWER LD. alarming pace. Therefore, woodfuel is NOT to be considered a renewable energy source in Zambia, and is not sustainable.
  • 10. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 10 Biogas Biogas is a highly productive source of renewable energy. However, the potential of this source of energy is not yet tapped in Zambia. Farms, markets, hospitals and schools, sewage ponds, as well as landfill waste deposits are suitable for biogas generation. First use is for cooking and heating, but biogas also provides organic fertiliser and a solution to sewage and organic waste, andSOUTHERN BIOPOWER LD. reduces methane emissions. At cost-reflective feed-in tariffs, biogas could also be used for (co)generation of electricity.
  • 11. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 11 Energy Efficiency in Zambia Awareness campaigns for the promotion of energy efficiency have not yet resulted in tangible results. Although Government policies recognise the need for energy savings (eg, through removal of import duties and taxes on the import of energy saving bulbs and solar geysers), energy wasteful behaviour still persists. The still relatively cheap electricity rates do not encourage residential or commercial consumers toSOUTHERN BIOPOWER LD. invest in such energy saving measures. However, wasteful use of cheap electricity by a noisy urban minority deprives 77% of Zambian households – mainly the rural poor - of their chance for development.
  • 12. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 12 The Suitability of RE SolutionsType RE ADVANTAGES DISADVANTAGESMajor High investment cost, environmental concerns,Hydro Lowest production cost per kwh high transmission losses ON-GRID OFF-GRID ON-GRID OFF-GRIDMini Decentralised Potential for minigrid Considerable High investment cost,Hydro additional generation transmission losses impossible to be borne capacity by usersSolar Highly decentralized No emission on site Most expensive per Very expensive, and generation, no storage (noise, fumes) kwh produced, and not not environmentally required. very environmentally friendly, as it requires friendly (high energy high capacity battery needs for production of banks that are relatively solar panels) short lived.Wind Relatively cheap - in Suitable for water Not economically viable Considerable areas with constantly pumping (irrigation, for electricity investment cost. Not high wind speeds. drinking water). generation in Zambia. reliable in many areas. SOUTHERN BIOPOWER LD.Biogas Well suited for Energy generation can be Considerable Considerable decentralized electricity controlled and managed investment cost. investment cost. generation and in accordance with Requires power Requires constant strengthening of grid. consumption. Energy purchase agreements supply and Investment cost borne source is available where with (many) small management of organic by private sector. there are economic independent power waste as feedstock. activities. producers at cost reflective tariffs.
  • 13. The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 13 Conclusions/Recommendations Encourage the production of biofuels feedstock, eg through fiscal measures that help to make local biofuels competitive against fossil fuels, and through mandatory blending and/or guaranteed cost reflective prices. Promote alternative household energies to woodfuel and electricity, such as biogas, gelfuel, and energy saving stoves. Involve the private sector in the generation of electricity, through mandated standard power purchase agreements (PPAs) at cost reflective feed-in tariffs.SOUTHERN BIOPOWER LD. Address energy saving measures, eg through higher consumer tariffs, eliminating non-metered customers, import duty tariffs on energy inefficient appliances, and the introduction of smart geysers.