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

1. SOUTHERN BIOPOWER LD.
The Potential of Renewable
Energies for Socio-Economic
Development in Zambia
Presentation by
Dr. Thomas Krimmel
British 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 grossly
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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 by
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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 the
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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 Hydro
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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 environmental
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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)
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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-
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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 an
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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, and
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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 to
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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 Solutions
Type RE ADVANTAGES DISADVANTAGES
Major High investment cost, environmental concerns,
Hydro Lowest production cost per kwh high transmission losses
ON-GRID OFF-GRID ON-GRID OFF-GRID
Mini Decentralised Potential for minigrid Considerable High investment cost,
Hydro additional generation transmission losses impossible to be borne
capacity by users
Solar 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.
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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.
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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.