Presentation byPresentation byDr. Thomas Krimmel Dr. Thomas Krimmel
British Council British Council –– Zambia 2012: Shaping our FutureZambia 2012: Shaping our Future29 March 201229 March 2012
SOUTHERN BIOPOWER
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The Potential of Renewable Energies for Socio-Economic
Development in Zambia
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 2
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HYPOTHESESWater and Energy are the most important factors for Water and Energy are the most important factors for development in the 21development in the 21stst century, not only in Africa.century, not only in Africa.
The conventional way these challenges are addressed The conventional way these challenges are addressed (ie through overexploitation of natural resources) (ie through overexploitation of natural resources) directly leads to a collapse of world civilisation.directly leads to a collapse of world civilisation.
Various forms of renewable energies are already used Various forms of renewable energies are already used in Zambia. But only major hydropower plants play a in Zambia. But only major hydropower plants play a significant role in the energy mix in the country.significant role in the energy mix in the country.
Other forms of renewable energies are grossly Other forms of renewable energies are grossly neglected, but have the potential to become a major neglected, but have the potential to become a major driving force for sociodriving force for socio--economic development.economic development.
This, however, requires that Government and citizens This, however, requires that Government and citizens recognise the role of RE and helps to promote their recognise the role of RE and helps to promote their application and economic viability.application and economic viability.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 3
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Biofuels: BiodieselDiesel consumption is more than double Diesel consumption is more than double the consumption of Petrol, in particular the consumption of Petrol, in particular because of mining and transport sectors.because of mining and transport sectors.Jatropha and palm oil have been identified Jatropha and palm oil have been identified as the most suitable feedstock. as the most suitable feedstock. Jatropha has failed as a plantation crop, but it provides Jatropha has failed as a plantation crop, but it provides good additional income opportunities for smallholders all good additional income opportunities for smallholders all over the country, however at high cost for mobilisation.over the country, however at high cost for mobilisation.Because of the less capital intensive processing Because of the less capital intensive processing technology, biodiesel could more easily be produced by technology, biodiesel could more easily be produced by decentralised facilities in all districts (as against ethanol).decentralised facilities in all districts (as against ethanol).The blending of diesel is foreseen at a ratio of up to 5%.The blending of diesel is foreseen at a ratio of up to 5%.However, at current diesel prices, the production of However, at current diesel prices, the production of biodiesel is not economically viable. biodiesel is not economically viable.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 4
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Biofuels: Ethanol
Sugar molasses are the preferred Sugar molasses are the preferred feedstock for Ethanol, as they are feedstock for Ethanol, as they are readily available in large quantities readily available in large quantities from the 3 main sugar factories.from the 3 main sugar factories.But sweet sorghum and cassava are even better suited for But sweet sorghum and cassava are even better suited for decentralised smallholder production, because they do not decentralised smallholder production, because they do not depend on irrigation. depend on irrigation. However, ethanol distillation is a highly capital intensive However, ethanol distillation is a highly capital intensive and energy intensive production technology. While the and energy intensive production technology. While the main sugar producers are waiting for favourable prices, main sugar producers are waiting for favourable prices, practically no ethanol is produced in the country so far.practically no ethanol is produced in the country so far.Government has put in place a biofuels policy with a Government has put in place a biofuels policy with a voluntary blending ratio of 10% of ethanol into petrol and voluntary blending ratio of 10% of ethanol into petrol and is considering an appropriate pricing mechanism. is considering an appropriate pricing mechanism.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 5
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Major HydropowerWith Hydropower accounting for almost 99 percent of With Hydropower accounting for almost 99 percent of electricity production, Zambia is one of the countries with electricity production, Zambia is one of the countries with the highest share of renewable energy for electricity.the highest share of renewable energy for electricity.Electricity is predominately consumed by the mines, while Electricity is predominately consumed by the mines, while only 23% of the population have access to electricity. only 23% of the population have access to electricity. The projected electricity demand growth is estimated at The projected electricity demand growth is estimated at 100 MW per annum, leaving the country with a power 100 MW per annum, leaving the country with a power deficit since 2008, until 2019 and possibly beyond. deficit since 2008, until 2019 and possibly beyond. There is stillThere is stilla large poa large po--tential for tential for hydropower, hydropower, but at a subbut at a sub--stantial cost.stantial cost.
No. Description Capacity (MW) Type 1 Kafue Gorge 900 Hydro 2 Kariba North Bank 600 Hydro 3 Victoria Falls 108 Hydro 4 Lunsemfwa & Mulungushi 38 Hydro 5 Small Hydros 24 Hydro 6 Isolated Generation 10 Diesel7 Gas Turbine (stand by) 80 Gas Total installed capacity 1,760
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 6
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The Potential for MinihydroWhile the current focus is While the current focus is rather on big schemes, rather on big schemes, only a small proportion of only a small proportion of the potential for mini the potential for mini Hydropower is tapped.Hydropower is tapped.Small schemes would offerSmall schemes would offergreat advantages such as great advantages such as
Allowing the service of Allowing the service of isolated minigrids in new areasisolated minigrids in new areasSubstantially lower environmental Substantially lower environmental and social risks/costand social risks/costSubstantially lower investment Substantially lower investment cost, allowing local investors to cost, allowing local investors to participateparticipate
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 7
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Co-generation in Sugar FactoriesThe 3 Sugar companies would be among the most The 3 Sugar companies would be among the most promising IPPs outside hydropower. Their potential for copromising IPPs outside hydropower. Their potential for co--generation is from Bagasse which is a byproduct with high generation is from Bagasse which is a byproduct with high calorific value, but no nutrient content.calorific value, but no nutrient content.Sugar companies have started to use the bagasse in low Sugar companies have started to use the bagasse in low pressure burners (usually 20 bars) to produce their own pressure burners (usually 20 bars) to produce their own electricity and steam. electricity and steam. However, the potential However, the potential is far greater, if high is far greater, if high pressure boilers (60pressure boilers (60--82bars) 82bars) would be installed.would be installed.But this is only economic, ifBut this is only economic, ifcost reflective feedcost reflective feed--in tariffsin tariffsare guaranteed.are guaranteed.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 8
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Solar and Wind PowerThe potential energy output for solar is about 4The potential energy output for solar is about 4--5 5 kWh/m2/day. However, considering the relatively high kWh/m2/day. However, considering the relatively high investment cost, there is only a relatively modest investment cost, there is only a relatively modest economic potential for photovoltaic use on grid. economic potential for photovoltaic use on grid. The average wind speed of 2.5m/s in the country is even The average wind speed of 2.5m/s in the country is even less economic for electricity generation.less economic for electricity generation.Therefore the effective utilisation of solar and wind power Therefore the effective utilisation of solar and wind power is limited, and mainly restricted to:is limited, and mainly restricted to:
Isolated public facilities, Isolated public facilities, with relatively low conwith relatively low con--sumption (schools, clinics);sumption (schools, clinics);Pump irrigation;Pump irrigation;Hot water boilers/geysers.Hot water boilers/geysers.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 9
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Is woodfuel a renewable energy?
In 2007, woodfuel accounted for over 70% of total In 2007, woodfuel accounted for over 70% of total national energy consumption, mostly for cooking and national energy consumption, mostly for cooking and heating as the major uses of woodfuel as household heating as the major uses of woodfuel as household energy.energy.Woodfuel is theoretically a source of renewable energy, Woodfuel is theoretically a source of renewable energy, but consumption rates are exceeding yield rates, mainly but consumption rates are exceeding yield rates, mainly as a result of inefficient production and use, and the as a result of inefficient production and use, and the increasing population. Deforestation is progressing at an increasing population. Deforestation is progressing at an alarming pace. alarming pace. Therefore, woodfuel is NOT to be considered a renewable Therefore, woodfuel is NOT to be considered a renewable energy source in Zambia, and is not sustainable.energy source in Zambia, and is not sustainable.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 10
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BiogasBiogas is a highly productive source of Biogas is a highly productive source of renewable energy. However, the potential of renewable energy. However, the potential of this source of energy is not yet tapped in this source of energy is not yet tapped in Zambia.Zambia.Farms, markets, hospitals and schools, Farms, markets, hospitals and schools, sewage ponds, as well as landfill waste sewage ponds, as well as landfill waste deposits are suitable for biogas generation. deposits are suitable for biogas generation. First use is for cooking and heating, but First use is for cooking and heating, but biogas also provides organic fertiliser and a biogas also provides organic fertiliser and a solution to sewage and organic waste, and solution to sewage and organic waste, and reduces methane emissions. reduces methane emissions. At costAt cost--reflective feedreflective feed--in tariffs, biogas could in tariffs, biogas could also be used for (co)generation of electricity.also be used for (co)generation of electricity.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 11
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Energy Efficiency in ZambiaAwareness campaigns for the Awareness campaigns for the promotion of energy efficiencypromotion of energy efficiencyhave not yet resulted in tangiblehave not yet resulted in tangibleresults.results.
Although Government policies Although Government policies recogniserecognise the need for the need for energy savings (energy savings (egeg, through removal of import duties , through removal of import duties and taxes on the import of energy saving bulbs and and taxes on the import of energy saving bulbs and solar geysers), energy wasteful solar geysers), energy wasteful behaviourbehaviour still persists.still persists.
The still relatively cheap electricity rates do not The still relatively cheap electricity rates do not encourage residential or commercial consumers to encourage residential or commercial consumers to invest in such energy saving measures. invest in such energy saving measures.
However, wasteful use of cheap electricity by a noisy However, wasteful use of cheap electricity by a noisy urban minority deprives 77% of Zambian households urban minority deprives 77% of Zambian households ––mainly the rural poor mainly the rural poor -- of their chance for development.of their chance for development.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 12
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The Suitability of RE SolutionsThe Suitability of RE SolutionsType RE ADVANTAGES DISADVANTAGESMajor Hydro Lowest production cost per kwh
High investment cost, environmental concerns, high transmission losses
ON-GRID OFF-GRID ON-GRID OFF-GRIDMini Hydro
Decentralised additional generation capacity
Potential for minigrid Considerable transmission losses
High investment cost, impossible to be borne by users
Solar Highly decentralized generation, no storage required.
No emission on site (noise, fumes)
Most expensive per kwh produced, and not very environmentally friendly (high energy needs for production of solar panels)
Very expensive, and not environmentally friendly, as it requires high capacity battery banks that are relatively short lived.
Wind Relatively cheap - in areas with constantly high wind speeds.
Suitable for water pumping (irrigation, drinking water).
Not economically viable for electricity generation in Zambia.
Considerable investment cost. Not reliable in many areas.
Biogas Well suited for decentralized electricity generation and strengthening of grid. Investment cost borne by private sector.
Energy generation can be controlled and managed in accordance with consumption. Energy source is available where there are economic activities.
Considerable investment cost. Requires power purchase agreements with (many) small independent power producers at cost reflective tariffs.
Considerable investment cost. Requires constant supply and management of organic waste as feedstock.
The Potential of Renewable Energies for Socio-Economic Development in Zambia Slide 13
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Conclusions/RecommendationsEncourage the Encourage the production of production of biofuelsbiofuels feedstockfeedstock, , egegthrough fiscal measures that help to make local through fiscal measures that help to make local biofuelsbiofuelscompetitive against fossil fuels, and through mandatory competitive against fossil fuels, and through mandatory blending and/or guaranteed cost reflective prices.blending and/or guaranteed cost reflective prices.Promote Promote alternative household energies alternative household energies to woodfuel to woodfuel and electricity, such as biogas, gelfuel, and energy saving and electricity, such as biogas, gelfuel, and energy saving stoves.stoves.Involve the Involve the private sector in the generation of private sector in the generation of electricityelectricity, through mandated standard power purchase , through mandated standard power purchase agreements (agreements (PPAsPPAs) at cost reflective feed) at cost reflective feed--in tariffs.in tariffs.Address energy saving measuresAddress energy saving measures, , egeg through higher through higher consumer tariffs, eliminating nonconsumer tariffs, eliminating non--metered customers, metered customers, import duty tariffs on energy inefficient appliances, and import duty tariffs on energy inefficient appliances, and the introduction of smart geysers. the introduction of smart geysers.
