Presentation to the Development Foundation for Zimbabwe conference on engaging the Diaspora Victoria Falls Zimbabwe th December 2010 By Max Gomera

Nation-Building 3.0 Opportunities for Powering the Zimbabwean Economy from the emerging Renewable Energy Maxwell Gomera

Context Zimbabwe has set an ambition of 5% GDP Growth – Growth areas likely to be mining, agriculture and manufacturing – Growth from from at least two areas limited both in terms of the distributive aspects of the wealth and potential for driving development. Growth is limited by weak energy sector – National power demand estimated at 2,000 to 3,200MW – Installed Capacity approximately 1,200MW – Available generation capacity approximately 1,000MW – Effective deficit approximately 1,900MW – With refurbishment of Hwange, Munyati, Harare and Kariba, available generation might reach 1,650MW by 2015

Context Economy largely dependant on Coal, Hydro and Imports for energy – Climate change limits the potential for coal (in terms of securing investment and pressures on emissions) – GRID sources have Limited Opportunity to power rural areas Where are the new areas for innovation? – Renewable energy presents a development opportunity aimed at creating a new driver for economic growth; new sources of employment and consistent solutions for the improvement of environmental quality based on the recognition of the interdependence of environment and economy

Green Economy is not… ‘Ecological Footprint’ already exceeds Earth’s regenerative capacity… our demands on the planet have doubled over the last 40 years… One which consumes capital....or risks human survival..

+ Public/private investment in green sectors + Quantity and quality of jobs in green sectors + Share of green sectors in GDP - Energy-resource-material use/GDP - CO2 and pollution level/GDP - Wasteful consumption DOWN UP 1. GEI Conceptual Issues Characteristics of Greening

Feasibility of Renewable Energy: Good ideas or just hot air? Some examples…

Renewable Energy Energy Emissions of CO 2 in energy production stages (t/GWh) Typical power generation per unit (kW) Investment Cost (US$/kW) Generation Cost (US$/MWh) Efficiency (%) Final Power Available (kW) MínMáx Wind Photovoltaic , Biomass Null Small scale hydroelectric [1] Production stages: extraction of raw materials (when appropriate), construction of power plants and operation.. Comparison between performance and cost of Renewable Energy technologies Source: adapted from the presentation of the Center for Research on Electricity (CEPEL), 2007

Kenya – Feed-in Tariffs FTI Aspects Expected Benefits FTI Policy Observed Impacts 15 MW(2008) 35 MW Observed Impacts on Mumias Sugar Company + ten-year power purchase agreement US Cents 6.0/ kWh “TRIPLE WIN” Reducing fuel dependence Coping with fuel scarcity and price Enhancing competitiveness (5-6m factories) Environmental Integrity Enhancing energy security (500MW) Job Creation (200,000 farmers) Expected Benefits Facilitate resource mobilization Reduce transaction costs Encourage private investors FTI Policy Access to Grid Long-term Power Purchase Set Price per kWh Mandator y Use FTI Aspects

China – Solar Water Heaters UNEP – Green Economy Initiative Solar Water Heaters China is world’s largest market 2/3 global share Over 10% of population rely on 4o mil SWH systems in place Implementation Plan on Promoting Solar Thermal Utilization in 2007 (11 th Five-Year Plan for New and Renewable Energy) Priority for hospitals, schools, restaurants and swimming pool

China – Solar Water Heaters Economic Benefits Economic Benefits Industry/ Highly profitable Household/ save fuel costs (342 – 3321 yuan) Environmental Benefits Environmental Benefits Reduce fossil fuel consumption Save 348,000 t SCE of fossil energy/ year Social Benefits Social Benefits Reduce risk of CO poisoning, Rheumatoid arthritis 600,000 employed

Green buildings EASTGATE building in Zimbabwe uses less than 10% of the energy of a conventional building its size. Eastgate's owners saved $3.5 million on a $36 million building because an air- conditioning plant didn't have to be imported. Rents are 20% lower than in other buildings. EASTGATE building in Zimbabwe mimics cooling mounds of termites Source: Mick Pearce

Sustainable Transport Source: Ministry of Transport Source: DOT/Maritime Administration e TCL Source: PDDT Vivo Source: Ministry of Transport

Brazil – Sustainable Cities Population increase in a sustainable way 361,000 (1960) – 1,797,000 (2007) Transport Planning City Management Urban Planning Sustainable Planning Initiatives Economic Benefits Per capita loss from severe congestion times less than other cities Annual fuel losses (per capita) times less than others Fuel usage is 30 percent lower than other cities Policy to transform city and industry Flood control -> turned vulnerable areas into parks Park with buses and bi-cycle path (ecological asset + green infrastructure) Curitiba Industrial City (CIC) 700 companies, 50,000 direct jobs, 150,000 indirect jobs

Uganda – OA Transformation UNEP – Green Economy Initiative Organic Agriculture 185,000 ha, 45,000 farmers (2004) 60%/ 359% increase 296,203 ha/ 206,803 farmers (2008) OA Growth in Uganda US$ 22.8 mil (2007/8) US$ 6.2 mil (2004/5) US$ 3.7 mil (2003/4) OA Exports in Uganda Climate Contribution 48-68% lower carbon emission Carbon Sequestration Business Opportunity Organic food & drink 97% revenue –OECD countries 80% producer in developing countries

Constructing the Agenda.... Use of Economic Instruments – Feed In Tariffs for Renewable energy Creating a market for renewable energy and increasing the number of producers Rewarding green production and creating a green market – Accessing Global Financing Clean Development Mechanism Reducing Emissions from Degradation and Deforestation Adaptation Funds – Green Economy Credit Line Support to Small and Medium Enterprises from local and international financiers Stimulus money, loan guarantees, grant programs

Constructing the Agenda… State programs for sustainable construction – Reduced taxes for green technologies – Develop policies to guide sustainable construction – Challenge the assumption of connection to ZESA – Water harvesting and individual water use control Payment for Ecosystem Services – Forests are important as offsetting tools – Wetlands, etc – Accessing such finances can be a challenge Support to local research capacities – Tech innovation will allow for production cost reductions and installation cost reductions in the long run

Value Time Horizon 1: Acting together with Business / Market leaders Horizon 1: Acting together with Business / Market leaders Instruments / Actions Transforming the Productive Sector

Value Time Horizon 1: Acting together with leaders of the market Horizon 1: Acting together with leaders of the market Horizon 2: Change processes in the supply chain & bring the market average toward Env agenda Horizon 2: Change processes in the supply chain & bring the market average toward Env agenda Instruments / Actions Changes in project design Transforming the Productive Sector

Value Time Horizon 1: Acting together with leaders of market Horizon 1: Acting together with leaders of market The Government of Zim will contribute to the stimulation of sustainability in the private business Horizon 2: Change processes in the supply chain & bring the market average for the environmental agenda Horizon 2: Change processes in the supply chain & bring the market average for the environmental agenda Horizon 3: Change all elements of the production chain installed in Zimbabwe Horizon 3: Change all elements of the production chain installed in Zimbabwe Instruments / Action Change in design of projects Change in social behavior Planning tools and monitoring Strategy with the Productive Sector

Green Economy What does this mean for Gov and business ? All agendas will need to link Green Economy provides one framework for such a conversation Concept brings together agenda of work, wealth and health Unifies the key actors in the economy, including Business which will ultimately provide most of the solutions All agendas will need to link Green Economy provides one framework for such a conversation Concept brings together agenda of work, wealth and health Unifies the key actors in the economy, including Business which will ultimately provide most of the solutions