In this interview, we
sat down with Alexander Filippov, Team Leader for the EU-funded Capacity
Building for Renewable Energy and Energy Efficiency project in Zambia,
implemented by DT, to get his insights on the energy situation in Zambia and
project. This project supports the efforts of the Government of Zambia in
increasing access to clean, reliable, and affordable energy while also
contributing towards the production of renewable energy.
What the current status of energy electricity in Zambia?
More than 85% of
electricity generation in Zambia is based on large hydro. Apart from hydro, the
country has significant and diverse renewable energy (RE) resources—solar,
biomass, wind, and geothermal. Power is generated by a state-owned utility
ZESCO and independent power producers, who supply electricity to the grid or
generate energy for their own consumption. Due to robust GDP growth and other
demographic and socio-economic factors, Zambia’s electricity demand has been
rising by more than 6% (or 150-200MW) per year for the past decade. Electricity
demand in Zambia outweighs supply especially during peak hours. The major
demand contributors are the mining, manufacturing, agriculture, and residential
sectors.
On average, access to electricity is 31.4% nation-wide.
Access in urban areas is 67.3%, while only 4.4% of the rural population is connected
to the national grid. Off-grid electrification access is 7.4%. The increasing
frequency of droughts has caused major challenges with electricity supply. In
2015-2016, for instance, and in 2019, the nation was overwhelmed with daily
8-12 hours of load-shedding (intentional power shutdowns to prevent whole
system failure). Lack of access combined with the population growth contribute
to growing deforestation for charcoal production, which contributes to
environmental and health problems. Diversification of electricity generation
sources and accelerating off-grid electrification are among the energy sector
priorities.
What
are the main challenges to ensure that all citizens of Zambia have access to
electricity?
The list of challenges facing electricity access is long and ranges from
inefficiencies at the operational level to institutional arrangements and
policy issues, as well as environmental and economy factors. To list a few: 1) Limited investment into electricity infrastructure, largely attributed
to associated risks; 2) Affordability issues due to high
connection fees and low income especially in rural areas; 3) Continued reliance
on hydro as the major generation source; 4) Cumbersome licensing process for
IPPs and off-grid developers – it can take up to two years to obtain a
generation license; 5) Non-cost reflective electricity tariffs; 6) High cost of
rural electrification; 7) Inadequate human and institutional capacity for
project preparation and implementation; and 8) Low awareness
of modern renewable energy and energy efficiency technologies.
How is your project trying to address these challenges?
The project team is developing policies, strategies, and regulations that support scaling up of RE generation and energy efficiency penetration. The examples include the revision of the national energy policy, development of RE and energy efficiency strategies and action plans, optimization of licensing and administrative procedures for RE independent power producers and mini-grid developers, and a variety of other RE and energy efficiency actions. This is accompanied by broad capacity building initiatives ranging from daily on-the-job mentoring to customized trainings. The additional comprehensive capacity building program will enhance project planning capacity of the Rural Electrification Authority, promote job creation through focused internships, support development of vocational education curricula, increase capacity of NGOs and local civil society organizations to grow awareness in RE and energy efficiency.
How
is the project promoting the “greener energies” such as mainly solar,
hydropower, biomass and geothermal energies?
The revised National Energy Policy 2019, facilitated by the program, promotes
cost reflective tariffs, scaling up clean energy technologies and energy
efficiency, establishment of an open and non-discriminatory electricity
transmission access regime, and increased access to energy services in urban
and rural areas. Mini-grid regulations, already approved by the energy
regulator, enabled implementation of solar and mini-hydro pilot projects
supported by EUR 20 million grants from the EU, and set clear and light-handed
rules for any off-grid RE technology developer. RE and energy efficiency
technologies will be promoted through several nation-wide awareness campaigns.
What have been the main achievements of the project so far?
The four-year project halfway through now. The most prominent results to date
include the promulgation of the National Energy Policy 2019 and approval of the
Mini-Grid Regulatory Framework that ensures security for the mini-grid
investors and developers and provide protection for the consumers in the country.
The development of RE and energy efficiency strategies and action plans are
underway. The program is mainstreaming gender throughout the policies and
regulations and is preparing a first Gender Strategy for the energy sector.
Also, we helped the Ministry of Energy to prepare a sector-wide monitoring and
evaluation plan and are already supporting its operationalization. The capacity
building program has been rolled out for the remaining project years, and we
are excited about the work of the next two years.