Beruflich Dokumente
Kultur Dokumente
Country Profile of
Conventional and Renewable Energies:
Republic of Zambia
Last updated on 04 Oct 2006
Prepared by
Maria-Evangelia Kaninia
Intern from August to …, 2006
for the
1 Executive Summary
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2.1.2 Population
Total population: 11.5 million ([CIA], July 2006 estimate); highly urbanized
Growth rate: 2.1% (same source); extremely high (16.5%, 2003 estimate, [CIA]) HIV/AIDS prevalence
rate, low development indices ([HDR])
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1
Copper mines are located in the Copperbelt region bordering an equally mineral-rich province of Congo DR.
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2.2.1.1 Coal
The largest producer of coal is the state-owned (but scheduled to
be privatised) Maamba Collieries Limited (MCL). According to [MCL], the
proven reserves of the assigned area of the company amount to 60.2
million metric tons (plus 18 million tons of probable reserves)2. These
figures refer to the two open cast mines operating at Maamba. These two mines have an annual capacity to
produce between 600,000 and 800,000 metric tons of saleable coal, “depending on demand and other
constraints” (quoted verbatim from [MCL], which does not detail these constraints). However, despite its
capacity, MCL only produced 120,000 tons in 2005 (reported in [FINa]). Further underground exploration is in
order. Major domestic customers of the MCL include the copper mines, cement plants, breweries, tobacco
farmers, and manufacturers.
Collum Mining Industries Ltd (Chinese-owned) had a production of 120,000 in 2005, projected to
increase to 480,000 in 2008. It is one of the coal suppliers to the country’s largest copper mines and also
exports to Congo, DR.
The coal production (approximately 190,000-200,000 metric tons in 2004) is not significant in the
international context and has declined since the peak in the early eighties (see Figure 2), though the reserves
and capacity to effectively multiply the production do exist.
2
[MEW], which was compiled by the Ministry of Energy, places the proven estimates at 30 million tons (2006);
though, the reliability of the report is questionable, given that it also quotes figures from the late nineties.
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700
600
000 metric tons
500
400
300
200
100
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
2.2.1.2 Oil
The country has no known hydrocarbon reserves and therefore no upstream oil sector.
The mid- and downstream oil industry is an important sector in the national economy. The country has
an oil refinery at Ndola (Indeni Refinery, which came on stream in 1973, was damaged in a fire incident in 1999
and rehabilitated and operational by the end of 2000; breakdowns leading to fuel shortages are frequent), one
of the few located in the inland. In 2004, the refinery processed 555ktoe of imported3 crude oil (equivalent to
approximately 75% of the primary energy supply). Its nominal capacity is 1,100ktoe per year. It is co-owned by
the government and Total of France ([MBEb]).
The country also imports refined petroleum products from other countries, especially South Africa
(imported oil products in 2004 were an additional 20% in comparison with the output of the refinery; the [EIAa]
estimate for total 2003 imports was 132ktoe, divided among the various qualities as shows Figure 3). Oil
products supplied 44% of the commercial energy needs in 2004, the balance being provided by hydroelectricity
and coal4.
3
The crude oil is transported via a pipeline from the port of Dar-es-Salaam in Tanzania (provenance: Kuwait or
Saudi Arabia). The pipeline is owned and managed by Tazama Pipelines Limited (jointly owned by the governments of
Zambia (two thirds) and Tanzania (one third), but scheduled to be privatised). It stretches for about 1,710 km and
currently transports yearly approximately 600ktoe of crude oil, although it was initially designed for 1,100ktoe per year
(see [TAZ]).
4
All percentage calculations based on the 2004 [IEA] energy balance table.
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800
750
700
650
600
550
500
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
5
The decrease in the early nineties was a reflection of a decline in the economy.
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2.2.1.3 Uranium
As reported by [ZME], Zambia possesses uranium reserves which are (primarily) geologically
associated with its most important mining commodity (copper). [URA] lists several companies that perform
uranium exploration (within the context of copper mining), though (the same source mentions that) the
government has given out no licenses for mining, while the country is in contact with the IEAE to define a
suitable policy.
Equinox Minerals Ltd (source: [ZME]) is reported to be considering (2006) the possibility to obtain
uranium as a by-product from a copper mine project it has undertaken. The deposit contains 22 million pounds
of U3O8 (enough to fuel three average 1000MW nuclear plants for 20 years).
2.2.1.4 Electricity
The electricity sector is entirely dependent on the hydro resources (apart from a minimal percentage
that comes from thermal generators and only amounted to approximately 0.6% in 2004 ([EIAa])). The sector is
robust enough to allow for exportation of 3% of the generated electricity, within the context of developing
African countries. The current capacity is divided among hydro (94% out of 1780MW) and thermal (6%) plants
([EIAa] data).
A reliable electricity sector is crucial to the mining sector, which is the backbone of the economy and
the largest consumer with 68% of the total consumption.
The plants operated by ZESCO (see below) are
detailed in [ZCOa]. Among them, the most important are:
o Kafue Gorge Power Stations: 6x150MW (900MW),
hydraulic resources provided through the Itezhi-
Tezhi Dam.
o Victoria Falls Power Station: Run of river station
(without a dam) located on the Zambezi River at the
Victoria Falls. Comprised of three stations (A: 8MW,
B: 60MW, C: 40MW) amounting to 108MW in total.
o Kariba North Bank Power Station: 4 machines of
150MW (600MW); it is operated and owned by the
Kariba North Bank Company (public utility); the
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company performs the generation function only and its power is dispatched to the national grid.
o Small hydro stations: These amount to a combined capacity of 23.75MW and include Lusiwasi (12MW),
Musonda Falls (5MW), Chishimba Falls (6MW) and Lunzua (750Kw). Generally, the small hydro plants
do not have sufficient water storage capacity to operate through the dry season.
The sum total of the nominal capacities of the ZESCO plants as described above is 1631.75MW, which
means that approximately 150MW are in addition privately operated.
Out of this difference, 38MW are allocated to the Mulungushi and Lunsemfwa Hydropower Company
plc, a privately owned independent power producer that runs the Mulungushi and Lunsemfwa hydropower
stations. All of the electricity generation from this facility is sold to ZESCO on a contract basis. Another 80MW
is operated by the CEC (see respective paragraph).
[ZCOa] estimates the demand at 1200MW (which gives a surplus allowing for exportation of electricity).
However, this surplus will be partially eliminated as existing plants will need to undergo rehabilitation works.
The demand is mainly affected by the major mining and industrial units, since the rate of residential
electrification is still extremely low (see 2.2.2).
The locations of these plants are visible on the grid map6 published in [ZCOb]. This map includes the
major hydro plants, substations and transmission lines (66-330kV). The national transmission grid transports
power from the generating stations and other systems to the distribution subsystems throughout the country
and also to the Copperbelt Energy Corporation and the various export points. The transmission system is
currently undergoing refurbishment. In [ZCOb] it is detailed to consist of: 4,638 km in total, of which: 2,008 km
of 330kV lines, 348 km of 220kV, 85 km of 132kV, 704 km of 88kV, and 2,823 km of 66kV lines. The total
transformer installed capacity is about 3,000MVA.
SADC and SAPP: ZESCO is a member of SAPP which falls under SADC. SADC (Southern African
Development Community) is committed to the development of the region. The South African Pool (in which
countries participate through their respective public utilities) aims at providing “reliable and economical
electricity” ([SAPP]) to the consumers in each member country. The major asset of the SAPP is the hydro
potential of the Congo River in Congo, DR. As can be seen in [SAPPa], Zambia would play a significant role in
wheeling through its transmission network energy from Congo DR to its southern partners at a larger rate than
currently. SAPP members trade energy through the Short Term Energy Market (STEM) system, which will
eventually develop into a spot market.
Sector organisation: ZESCO ([ZCO]) is the largest power utility in the country. It is a parastatal
company under the Companies Act, established in 1970. ZESCO cooperates with additional agencies, among
which the Zambezi River Authority (ZRA) which regulates the consumption of the hydraulic resources of the
Zambezi River System. The role of the agency is to arbitrate the amount of energy drawn from the river system
by the countries that “share” its resources (the other country being Zimbabwe, represented by its public utility,
ZESA).
The Copperbelt Energy Corporation ([CEC]) (initially known as the Power Division of ZCCM which
has now been privatised) has a narrow cooperation with ZESCO: It purchases7 electricity generated by the
public utility8 (ZESCO) on long-term contracts (it is also implied that it imports electricity on behalf of the mining
companies mentioned in [CECa] from Congo DR) and transmits it to the privatized mining companies on the
Copperbelt Province (whose demand for electricity actually constitutes 70% of the total demand in the country).
CEC maintains 80MW9 of emergency10 gas turbine plants in selected substations of the network so as to
6
An other map of the transmission grid, published in [GVEP] is available in the Annex.
7
The original power purchase agreement with the national electricity supply utility, ZESCO, stipulates that a
450MW base supply be distributed to six copper mines through the CEC transmission network.
8
CEC sources power from two points within Zambia, at Luano and Kabwe, and from a third point in Congo DR
(see [ESI]).
9
This capacity comprises two 20MW generators (Luano substation), two 10MW (Bancroft substation) and one
10MW (Maclaren substation). All of these provide back up to ensure critical water-pumping requirements are met.
10
In copper mines, even short power failures could have catastrophic consequences, such as flooding.
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assure reliability. The CEC transmission and distribution network consists of 808km of overhead lines (mostly
double ones so as to enhance reliability) and 36 high voltage substations.
The CEC also serves the SAPP region by operating an interconnection to Congo DR (210MW are
wheeled from Congo DR to the southern neighbors of Zambia through the CEC network ([ESI])). Last, [CEC]
mentions that, should the SAPP projects for exportation of electricity to the deprived market of East Africa go
ahead, the CEC would participate in the bidding process. Within the SAPP context, the interconnection to
Congo DR is to have its capacity increased from the current 210 MW to 500 MW ([ESI], according to which the
project was to have been completed by 2007). The increase of the capacity would be achieved (again,
according to [ESI]) through the construction of a 220 kV line from Luano to Karavia, with 45 km of the length in
Zambia and 92 km in Congo DR.
Schematically, the sector is depicted as follows:
o
Figure 6 Net electricity generation and consumption, [EIAa] data
Table 3 Tables copied from [SEIa] concerning the percentages of the population with access to electricity
for various uses
[MEW] (2005) gives an estimate of 20% in urban areas and only 2% in rural areas.
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The CEC, which operates a significant part of the transmission network, declares itself “keen to
investigate projects that support the rural electrification process”, though it earnestly specifies that these
projects should be economically viable. See also 2.2.1.4 for details on the electricity network.
According to [MEW], a review and evaluation of Rural Electrification Projects was undertaken between
January and March 2004. This is a reference to ZESCO projects of grid expansion towards isolated urban
areas (Kasempa (completed), Kaoma, Nyimba and Chavuma (preparatory work) are specifically mentioned).
Projects for electrification of “farming blocks” are also reported to be underway. Further, [MEW] mentions the
existence of a “Rural Electrification Master Plan” realised by an external consultant. This document is to be
sent to potential donors (among which JICA, USAID and SIDA have expressed interest).
Zambia is also expected to profit from GVEP11 projects ([see GVEP]), which are parallel to the
government’s Poverty Reduction Strategy Paper.
[GVEP] also mentions that currently, a project under UNIDO/GEF on “Renewable Energy Based
Electricity Generation for Isolated Mini-grids”, involving solar energy, biomass and mini-hydro units, is being
implemented ([UND]).
The functions of the governmental Rural Electrification Authority (REA), which was established in
December 2003, are detailed in [GVEP], page 21, and include the administration and management of the Rural
Electrification Fund, cooperation with GVEP agents, implementation of master plans for systematic
electrification of rural areas, mobilization of external, and financing of studies. With the establishment of the
REA, government hopes to increase the rural electricity access from the current 2% to 15% by 2010.
11
GVEP is a partnership of organisations such as the World Bank, USAID, UNDP private firms and bilateral
donors with a view to provide modern energy access to those yet unserved.
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3.2 Hydro
3.2.1 Resource potential
The hydraulic resources are located along four major river systems: the Zambezi River in western
Zambia, which also forms much of the southern border of the country including Lake Kariba; the Kafue River
which drains the Copperbelt and then loops south-westwards and ultimately eastwards to join the Zambezi; the
Luangwa system which dominates eastern Zambia; and the Luapula River which drains northwards into Lake
Mweru, forming a common border with Congo DR along much of its length. These are already exploited,
mainly through plants supplied through dams. The total potential capacity is estimated at 6,000MW ([MEW]).
However, water shortage has led to levels of the water in the dams that cannot fuel the plants to their
full capacity. The Kariba Dam has long term storage capacity, but the Itezhi-Tezhi Dam and the smaller hydro
plants face problems in maintaining a steady output during the low season ([ZCOa]).
3.2.2 Achievements
The electricity sector depends quasi entirely on the hydro resources of the country with a hydro-fueled
capacity of 94% out of 1780MW (as detailed in 2.2.1.3).
The National Energy Policy mentions specifically the development of the hydro potential as a major
target (see 2.2.1.4).
3.3 Solar
3.3.1 Resource potential
[MEW] reports that the average sunshine is (yearly) 3,000 hours (out of 8,760), while the intensity is
substantial, at 4.5kWh/m2/day.
3.3.2 Achievements
[IRI] reports on a solar photovoltaic energy project, supported by the Swedish International
Development Agency ([SEI]) and the government, to provide solar energy to rural areas not connected to the
national grid. According to [SEI], the first (and current) phase of the project includes the installation of three
ESCO (Energy Service Companies; these companies constitute the legal framework for the development of
the installations on a lease basis, since private individuals or even communities would not be able to afford the
equipment) in the rural communities of Chipata, Lundazi and Nyimba in Zambia’s Eastern Province, with a total
installed capacity of 20kWp12. The Nyimba ESCO is operational since December 2000, supplying 100 clients
(see [SEIa]). According to [EML], though, Lundazi also appears to be equipped with 150 solar residential
connections (no date of entry into operation provided).
3.4 Wind
The potential for wind energy is mainly restricted to mechanical applications (irrigation), according to
[MEW] and [GVEP], with an average of 3m/s.
12
kWp is a unit referring to the peak output of the solar generator. Each of the modular panels used in the project
have a capacity of 50Wp.
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7500
7000
6500
6000
5500
5000
4500
4000
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
3.6 Geothermal
Zambia has geothermal energy potential (see [GVEP]), though However, little apart from some
research has been done to utilize the springs for industrial or energy provision purposes. The same source
mentions to the failed attempt to install 2x120kW turbines at the Kapisya site (in 1987, project funded by the
Italian government). The installation has never been loaded due to the absence of any infrastructure to
distribute the electricity produced to the local community.
4 Sources
[EIU] Economist Intelligence Unit, http://www.eiu.com/, Country profile
[FAO] Woodfuel review and assessment in Zambia, December 1998, link
[IMFa] Enhanced Initiative for Heavily Indebted Poor Countries, Completion Point Document, April 19,
2005, http://www.imf.org/external/pubs/ft/scr/2005/cr05137.pdf
[CIA] World Factbook, https://www.cia.gov/cia/publications/factbook/geos/za.html
[ESI] “Copperbelt Energy Corporation - a regional example”, April 2003, http://www.esi-africa.com/, link
[URA] WISE uranium project, http://www.wise-uranium.org/upafr.html
[MEW] “Energy and Poverty Reduction Strategy Process, the Zambian Case”, 12/04/05,
www.e4d.net/euei/Maputo/presentations/Musonda-zambia.ppt
[CEC] Copperbelt Energy Corporation PLC, http://www.copperbeltenergy.com/
o [CECa] Shareholders, Customers, link
[SAPP] Southern African Power Pool, http://www.sapp.co.zw/
o [SAPPa] Interconnections in the SAPP region, link
[HDR] UN Human Development Reports, http://hdr.undp.org/statistics/data/countries.cfm?c=ZMB
[ERB] Energy Regulation Board of Zambia, http://www.erb.org.zm/
o [ERBa], Economic regulation, Zambia Power sector, link
[STA] State Department Background Notes, http://www.state.gov/r/pa/ei/bgn/2359.htm
[IEA] Energy Balances of non-OECD countries, 2006
o [IEAa] Graphs, Evolution of total energy primary supply, link
[EIAa] International data, http://www.eia.doe.gov/emeu/international/
[IRI] “Zambia: Solar power improves everyday life”, 09/06/04, http://www.irinnews.org/, link
[ZME] http://www.zambia-mining.com/economic.html
[SEI] Stockholm Environment Institute, Photovoltaic Energy Service Companies,
http://www.sei.se/energy/pvesco/pv_proj.htm
o [SEIa] Rural energy service companies – experiences from Zambia, link
[EIAb] energy balance table, 2003, http://www.eia.doe.gov/emeu/world/country/cntry_ZA.html
[MCL] Maamba Collieries Limited, reported by the Zambia Privatisation Agency
http://www.zpa.org.zm/maamba.htm
[FINa] “Zambia suspends mine ops”, article from http://www.fin24.co.za, 07/07/2006, link
[EML] Solar installation projects in Zambia, http://www.eml-eis.com/Solar/Projects/Solar_Projects.htm
[MBEa] Zambia Oil and Gas overview, http://www.mbendi.co.za/indy/oilg/af/za/p0005.htm
[MBEb] Indeni Refining Company overview, http://www.mbendi.co.za/rein.htm
[TAZ] Tazama Pipeline overview, reported by the Zambia Privatisation Agency,
http://www.zpa.org.zm/tazama.htm
[UND] “Renewable Energy based electricity generation for isolated mini-grids in Zambia”,
http://www.unido.org/doc/5256
[GVEP] Energy services delivery in Zambia, Status and opportunities for enhancement in the context of
the Global Village Energy Partnership initiative (GVEP), 27/05/04,
http://www.gvep.org/files/8390_Zambia_Concept_Note.pdf
[WRI] http://earthtrends.wri.org/, World Resources Information, Earthtrends
[ZCO] ZESCO Limited, electricity utility, http://www.zesco.co.zm/
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o [ZCOa] http://www.zesco.co.zm/general-transmission.html
o [ZCOb] national grid map (including the ZESCO generating plants and transmission links for 66-
330kV voltage), http://www.zesco.co.zm/Power%20Sys01.html
5 Annex
International copper price; Zambia copper production (source: [EIU])
500 180
450 160
400 140
350
120
300
US c/lb
100
000 t
250
80
200
60
150
100 40
50 20
0 0
2002 2003 2004 2005
Figure 8 Copper production; international price; according to the [EIU] data, the elasticity of the Zambian
production to the international price was 0.26, 0.28 and 0.31 in 2003, 2004 and 2005 respectively; copper
production is critical to the development of the country and depends heavily on a robust electricity sector
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