POWER SECTOR POLICY OVERVIEW ASSOCIATION FOR POWER UTILITIES OF AFRICA (APUA) SCIENTIFIC COMMITTEE CONFERENCE Presentation by Mr. M. Mulasikwanda Department of Energy Venue: Mulungushi International Conference Center, Lusaka Date: 8 th April 2015 MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

CONTENTS 1.Background 2.Objective 3.Overview of Energy Sector 4.Vision 5.Guiding Principles 6.Key Sector Policy Objectives (NEP Focus) Electricity sector Renewable Energy Energy Efficiency and Conservation MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

1. BACKGROUND  The first National Energy Policy (NEP) formulated in 1994 sought to promote optimal supply and utilization of energy, especially indigenous energy forms, for socio-economic development in a safe and health environment  However, 1994 NEP policy did not address issues such as:  emerging cross­ cutting issues such as the Environment, Gender HIV/AIDS pandemic and its impact on the Energy sector,  Diversification of the country's energy mix through promotion of alternative and renewable energy sources of energy  Need to integrate more players to develop the Sector MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

2. OBJECTIVE  Therefore the 2008 NEP was introduced:  The 2008 National Energy Policy (NEP) sets out Government’s intentions in the energy sector that are aimed at ensuring that the sector’s potential to drive economic growth and reduce poverty is fully harnessed.  The overall objective of the 2008 NEP is to create conditions that will ensure the availability of adequate supply of energy from various sources which are dependable and at lowest economic, financial, social and environmental costs consistent with national development goals MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

3.OVERVIEW OF ENERGY SECTOR  Installed Hydropower capacity is 2,318MW while estimated potential is 6000MW  99% of the country’s electricity is generated from hydro  25% of population have access to electricity (Urban 48% & Rural 4%)  2030 Targets: 48% to 99% for Urban and 3% to 51% for Rural.  Over 70% of total energy is derived from wood fuel (firewood and charcoal) for majority of households MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

3.OVERVIEW OF ENERGY SECTOR MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

4. VISION  The 2008 NEP was developed consistent with objectives of national and global development plans  2030 National Vision  “To provide well developed, managed, reliable and su stainable energy services for the improvement of the quality of life of all Zambians”  National Development Plans (R-SNDP, )  The strategic focus on the energy sector is to ensure availability of adequate and reliable supplies of energy at the lowest cost with due regard to environmental concerns. This will be achieved with due focus on promoting employment creation by the Sector and enhancing rural development. MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

Cont’d  Millennium Development Goals (MDGs)  To address socio- economic issues that impact on energy as provided under the MDGs  Sustainable Energy for All  Ensuring universal access to modern energy services, doubling the global rate of improvement in energy efficiency and doubling the share of renewable energy in the global energy mix. MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

5. GUIDING PRINCIPLES  Development of appropriate energy technologies  Development of human resource for effective implementation of energy programmes  Optimize energy efficiency at the production, transformation and end­ use levels  Provide incentives to enhance the performance of the energy sector MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

CONT’D  Resource mobilization for development of the energy s ector;  Partnerships with the private sector, civil society and c ommunity participation of Zambian citizens in all aspects of energy industry MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

6. KEY SECTOR POLICY OBJECTIVES Focus of the 2008 NEP  Biomass  Efficient utilization, production & Management of Biomass  Promotion of modern use of Biomass for, Electricity generation, LPG and biofuels  Electricity  Expand generation and transmission capacity (Development of PSDMP)  Increase access to electricity (REMP) MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

6.KEY SECTOR POLICY OBJECTIVES Focus of the NEP  Petroleum  Ensure an adequate, reliable and affordable supply of pet roleum products at competitive and fair prices and also the reduction in importation costs.  Coal  To increase the contribution of coal as energy source in the national energy mix. Uranium: To promote the exploitation of uranium as an energy resource for social and economic development. MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

6.KEY SECTOR POLICY OBJECTIVES Focus of the NEP  Renewable Energy Sources (RES)  To increase the utilization of RES by addressing the barriers to their wider deployment and utilisation.  Rural Energy Provision  To increase access to affordable energy in rural areas to reduce poverty and promote economic growth. MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

6. KEY SECTOR POLICY OBJECTIVES Focus of the NEP  Energy Management  Promote efficient use of energy resources, through energy conservation and substitution.  Household Energy  To reduce dependence on wood fuel and ensure sustainable provision of affordable, reliable modern energy services to rural and urban households as a means of raising productivity and standards of living. MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

6.0KEY SECTOR POLICY OBJECTIVES Focus of the NEP  Energy Pricing  To ensure that energy prices reflect costs of providing energy and also take into account principles of fairness and equity  Legal & Institutional Framework  Development of effective legislative and regulatory framework that provide guidance to energy stakeholders Current legislation governing the sector includes the Electricity Act, Energy Regulation Act (Currently under review) and the Rural Electrification Act MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

6.0KEY SECTOR POLICY OBJECTIVES Other relevant pieces of legislation are: The Zambia Environmental Management and Pollution Control Act, Water Resources Management Act, Lands Act and Minerals Development Act. MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT

Other Existing and On-going Plans MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT  Power Systems Development Master Plan (2010 – 2030):  The objective of the plan is to coordinate generation, transmission and interconnections in order to assist the achievement of a stable power supply in Zambia and Southern Africa as a whole.  Rural Electrification Master Plan (REMP) (2008 – 2030)  The REMP serves as a guide on the prioritization of electrification projects in Zambia as well as a resource mobilization tool.

Cont’d MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT  Grid Code: The grid code was adopted n It legally establishes technical requirements for the connection to, and use of an electrical transmission system by parties other than the owning electricity utility  Renewable Energy Feed-in Tariff Policy:  Government is developing a REFIT policy for Zambia to promote electricity generation from renewable energy sources. REFIT development is expected to be completed by end of 2015

MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT