Electricity vital for economic growth
Published On December 23, 2015 » 1688 Views» By Bennet Simbeye » Business, Columns
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Business TimesBy MAIMBOLWA MULIKELELA –

ELECTRICITY is a major input in all sectors of the economy and thus, a key driver of economic growth.
Zambia’s development aim is to be a thriving middle-income nation by the year 2030 and for that to be achieved, abundant energy is required.
Currently, there are six power plants at various stages of development, some of which have been in the pipeline for more than a decade.
According to the World Bank Zambia economic brief, the total capacity of these projects is about 1,730 megawatts (MW).
Generation of between 150 and 300 MW is expected next year from Maamba Collieries, along with 70MW from the Itezhi Tezhi power plant.
To this effect, the 750 MW Kafue Gorge Lower has gone through several procurement phases and has recently been contracted at a cost of US$2 billion. This is scheduled to be commissioned in 2020.
The report indicates that the remaining three projects namely, Lunzua, Ndola Energy and EMCO, are negotiating power purchase and other support agreements with ZESCO and the Government.
Lunzua Power Authority is expected to bring on line 210MW of hydropower, the Ndola Energy Extension will add 50 MW of Heavy Fuel Oil (HFO) and 300 MW would come from EMCO Coal fired power plant.
Energy and Water Development Minister Dora Siliya says the Government realises that without energy, development cannot take place as energy is the engine of development.
Ms Siliya says the energy sector was of strategic importance to the development of the country.
She says the Ndola energy power project phase II for heavy fuel oil was expected to be commissioned early 2017 and further expected to bring on line about 50 MW.
“In the long term, Government is working on the Batoka project which will bring on line 1,200 MW and another 1, 200 MW for Zimbabwe bringing the total to 2,400 MW,” Ms Siliya says.
Government is also expected to tap electricity from Luapula River projects which would be shared with the Democratic Republic of Congo  (DRC) and generate 1,000 MW.
About 300 MW would be procured from Maamba Coal fired plant and this is envisaged to be commissioned in June next year.
Further, the first unit of 60 MW from Itezhi Tezhi power project is scheduled to be commissioned this month while the second unit is expected to be commissioned in January next year.
Ms Siliya says Sino Hydro Corporation would develop the Chavuma Mini Hydro with the power generation capacity of 14 MW and would be commissioned before the end of 2017.
“In order to diversify the energy mix, Government is currently working on the development of a renewable energy feed in tariff.
“Energy experts believe that there is also potential for thermal power generation by independent power producers for 200 MW worth of generation over the coming years,” she says.
The Minister said assuming the potential revenues, partly determined by the level of electricity tariffs were sufficient to attract interest while other constraints such as weak management of the tendering process could be addressed.
The prospect of solar and thermal generation in the next few years would help diversify Zambia’s power generation and it’s slightly less dependent on hydro power.
In July this year, President Edgar Lungu directed the Industrial Development Corporation (IDC) to develop at least 600 MW of solar power in the shortest possible time to address the current power crisis.
To that effect, the IDC signed a memorandum of understanding with the International Finance Corporation (IFC), a member of the World Bank group to explore the development of 100 mega watts using solar energy.
This is to be implemented through the Scaling Solar Programme and it would be the country’s first solar photo-voltaics (PV) independent power projects.
The projects are aimed at providing competitively priced, clean power that would reduce Zambia’s dependence on hydro resources and diversify the country’s supply mix.
IDC anticipates that the first two projects, with a combined initial target capacity of 100 mega watts, will create the opportunity for subsequent and rapid scale-up in renewable energy generating capacity in Zambia.
In addition to the above, the Government with the assistance of the World Bank is working on developing the Renewable Energy Resources mapping for solar and wind.
“Once the resource mapping is done, we will be able to know the most suitable areas of locations for these technologies.
“Apart from the resource mapping exercise, the World Bank has collaborated with my ministry through other projects such as increased access to electricity services as well as Muzuma Livingstone Victoria Falls transmission and distribution reinforcement project,” Ms Siliya says.

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