EU COOPENER PROJECT NATIONAL WORKSHOP Energy,Poverty Reduction and the MDGs in Zambia Geoffrey Musonda Department of Energy 9 th September, 2005

Background Information on Zambia  Population – 10 million  GDP Growth rate (2000) – 3.5%  GNP per capita (2001) - $342  Urban Electrification – 48%  Rural Electrification – 2%  Share of modern energy – 19% EU COOPENER PROJECT NATIONAL WORKSHOP

The strategic Nature of Energy Energy is the engine of development Need to raise awareness within Government, the donor community, private sector etc on the strategic nature of energy in the fight against poverty Need to integrate energy planning in other sectors such as health,education and agriculture Integration of energy planning is key to the successful implementation of the PRSP and consequently attainment of the MDGs EU COOPENER PROJECT NATIONAL WORKSHOP

Energy Sector Goals 1.Rural electrification – increase from 2% to 15% in 10 years 2.Urban Electrification - – increase from 45% to 78% in 10 years 3.Charcoal consumption – reduce by 400,000 tonnes in 10 years 4.Increase generation capacity 5.Increase power exports 6. Increase regional interconnectivity EU COOPENER PROJECT NATIONAL WORKSHOP

GVEP In Zambia EU COOPENER PROJECT NATIONAL WORKSHOP  MEWD signed on membership in June, 2003  GVEP Technical Secretariat established at the Department of Energy within the MEWD to coordinate the GVEP activities and monitor developments in September,2003  National GVEP Working Group established in October,2004 and terms of reference for working group developed

GVEP In Zambia cont... Working group to be assisted by four subworking groups which will focus on technical issues,outreach and information,finance and private sector and rural energy policy development EU COOPENER PROJECT NATIONAL WORKSHOP

The Zambian GVEP objectives  Support poverty alleviation and sustainable growth by promoting increased access to modern and affordable energy services  Mobilize foreign, regional, and local resources on providing access to sustained, affordable, reliable, clean, healthy, and efficient energy services  Facilitate the environment for an improved integration of clean energy in the national development plans and programs

The Zambian GVEP Priorities  Address energy-poverty nexus  Engage private sector, civil society, and other stakeholders  Support national and local implementation of energy- poverty programs  Manage knowledge and disseminate information on successful programs, available technologies, and workable business and financing models  Develop capacity and mitigate barriers to increasing clean energy access  Monitor results at the national level EU COOPENER PROJECT NATIONAL WORKSHOP

The Zambian GVEP Approach  Work to integrate energy access as a crucial element in the national development policies and investment programs  Engage entrepreneurs and energy users in the design, installation and operations of replicable clean energy service delivery for poverty alleviation and development  Facilitate preparation of market regulatory frameworks for sustained clean energy services  Disseminate technology information and best practices EU COOPENER PROJECT NATIONAL WORKSHOP

The Zambian GVEP Current Status  In the process of engaging a consultant  Consultant will be tasked to develop an Energy – Poverty Action Plan and identify pilot projects The Energy Poverty Action Plan will be derived from the Energy Policy and PRSP implementation plan GVEP Zambia will implement energy- poverty pilot projects in preparation for up scaling of project Discussions and national stakeholder consultation will be key to development of an Energy – Poverty Action Plan EU COOPENER PROJECT NATIONAL WORKSHOP

EU Energy Initiative - Intergration in the Zambia PRSP  Zambia regards the EUEI as an important initiative in the (attainment of the MDGs) poverty reduction drive  Project development will fall within the PRSP framework EU COOPENER PROJECT NATIONAL WORKSHOP

EU Energy Initiative Proposed Projects  Rural Electrification – Grid and other sources Aimed at boosting agric sector  Production and Use of biofuels Feasibility studies Production Promotion and end use  Increased alternative energy services for domestic sector LPG,gel fuel and improved stoves EU COOPENER PROJECT NATIONAL WORKSHOP

EU Energy Initiative Proposed Projects –cont..  Strengthen monitoring and evaluation capacity of MEWD  Energy Sector Capacity Building Awareness and Skills among: -Energy Regulation Board -Consumers -Private Sector EU COOPENER PROJECT NATIONAL WORKSHOP

EU Energy Initiative Way Forward  Presentation of proposed projects to the Energy Sector Advisory Group  Discussion with MOFNP officials  Integration of the Proposed Projects in the 2006 National Budget EU COOPENER PROJECT NATIONAL WORKSHOP

Conclusion  There is need to sensitise all government departments,NGOs,private sector and the donor community on the critical nature of energy not only in the development agenda but also in the fight against poverty  We still need to work extra hard not only in the energy sector but in other sectors as well to implement the PRSP and attain the MDGs EU COOPENER PROJECT NATIONAL WORKSHOP

THE END THANK YOU FOR YOUR ATTENTION EU COOPENER PROJECT NATIONAL WORKSHOP