ZESCO-Loadshedding Presentation final

Report
PRESENTATION TO EAZ
LOAD-SHEDDING IN ZAMBIA:
WHAT SHOULD BE THE PLAN
PRESENTED BY
C CHITUNDU
MANAGING DIRECTOR
1
PRESENTATION OVERVIEW
1.0 BACKGROUND
2.0 CURRENT STATUS
3.0 ZESCO’S PLANS TO END LOAD-SHEDDING
3.1 GENERATION PROJECTS
3.2 TRANSMISSION PROJECTS
3.3 DISTRIBUTION PROJECTS
3.4 OTHER INITIATIVES TO REDUCE LOAD-SHEDDING
4.0 CONCLUSION
2
BACKGROUND
• ELECTRICITY IS A KEY DRIVER OF ECONOMIC GROWTH &
MAJOR INPUT IN ALL ECONOMIC SECTORS - AGRICULTURE,
MINING, MANUFACTURING AND TOURISM
• ZESCO’S ELECTRICITY GENERATING CAPACITY STANDS AT 2.2
GW (99% HYDRO)
• NET EXPORTS ROUGHLY 5% OF TOTAL GENERATION (MOSTLY
TO NAMIBIA, BOTSWANA AND CONGO D.R.)
• CURRENT PEAK DEMAND FOR ELECTRICITY BARELY MEETS
GENERATION CAPACITY ESPECIALLY DURING PEAK TIMES
•
3
BACKGROUND CONT’D
• ZAMBIA
HAS
EXPERIENCED
A
SUSTAINABLE
ECONOMIC GROWTH OVER THE LAST FIVE YEARS
DESPITE GLOBAL RECESSION, RESULTING IN:
• INCREASED DEMAND FOR ELECTRICITY FROM ALL
SECTORS
• DEMAND
OUTSTRIPPING
AVAILABLE
CAPACITY
DURING PEAK HOURS
• ZESCO MUST INVEST IN NEW INFRASTRUCTURE TO
COPE WITH GROWING DEMAND
4
BACKGROUND CONT’D
• HOWEVER DELAYED INVESTMENT IN GENERATION PLANTS HAS
NOT MATCHED THE LOAD GROWTH
• RESULTING IN DEFICIT IN POWER GENERATION CAPACITY
• FURTHER, DELAYED INVESTMENTS IN TRANSMISSION &
DISTRIBUTION SYSTEMS HAS ALSO LED TO DEPLETING POWER
TRANSMISSION & DISTRIBUTION CAPACITY
• ABOVE FACTORS LARGELY CONTRIBUTE TO LOAD-SHEDDING
• LOAD-SHEDDING IS DONE TO SAFEGUARD THE ELECTRICITY
INFRASTRUCTURE
5
GENERATION STATUS
POWER STATION
INSTALLED
CAPACITY
(MW)
AVAILABLE CAPACITY
(MW)
ZESCO
KAFUE GORGE PS
990
960
KARIBA NORTH BANK PS
720
705
VICTORIA FALLS PS
108
103
SMALL HYDROS
13
10
KNBE
360
360
LUSIWASI
12
5
IPPs
LUNSEMFWA
50
20
NDOLA HFO PLANT
50
48
TOTAL
2,303
2,211
6
GENERATION STATUS CONT’D
• THE TOTAL AVAILABLE CAPACITY IS 2,211 AGAINST A
MAXIMUM NATIONAL DEMAND OF 1890.
• ZESCO HAS ADEQUATE CAPACITY TO MEET THE DEMAND
AT PRESENT. LOAD-SHEDDING IS THEREFORE DUE TO
BOTTLENECKS IN THE TRANSMISSION AND DISTRIBUTION
INFRASTRUCTURE.
7
PROJECTED DEMAND
ELECTRICITY DEMAND
Demand Forecast for Zambia
3000
2500
MW
2000
1500
Demand
1000
500
0
Y ears
8
PROJECTED DEMAND CONT’D
• FROM THE GRAPH IT CAN BE SEEN THAT UNLESS
THE PLANNED GENERATION PROJECTS COME ON
STREAM, THERE WILL BE A GENERATION DEFICIT
IN THE COMING YEARS.
• DAILY CONNECTION RATE: 300
• PENDING BACKLOG IN CONSTRUCTION AND NEW
CONNECTIONS TO DATE: 20,000
9
PROJECTED GENERATION DEFICITS
Year
2008
2010
2015
2020
2025
FORECAST MAXIMUM
DEMAND (MW)
1,579
1,592
2,389
2,595
3,029
547
753
1,179
FORECAST SHORTFALL
(MW)
10
SHORT TERM MEASURES TAKEN TO REDUCE LOADSHEDDING
GENERATION
 REHABILITATION AND UPRATING OF THE THREE MAJOR HYDROPOWER
STATIONS, I.E. KAFUE GORGE, KNBPS AND VICTORIA FALLS
 VICTORIA FALLS POWER STATION – USD53.7MILLION
 KAFUE GORGE POWER STATION - USD 85.5 MILLION
 KARIBA NORTH BANK POWER STATION
– USD81.4MILLION
 THROUGH THE UPRATING OF KARIBA AND KAFUE GORGE 210MW WAS
GAINED
TOTAL COST OF THE UPGRADE– USD 100 MILLION
 ESTIMATED COST FOR A 210MW NEW HYDRO POWER STATION
– ABOVE US$600MILLION
11
GENERATION PROJECTS
POWER REHABILITATION PROJECT (PRP)
 SCOPE INCLUDED REHABILITATION AND UPRATING OF THE THREE MAJOR
HYDROPOWER STATIONS, I.E. KAFUE GORGE, KNBPS AND VICTORIA FALLS
 OTHER WORKS INCLUDED REINFORCEMENT AND REHABILITATION OF
SOME TRANSMISSION AND DISTRIBUTION INFRASTRUCTURE
 THE MAJOR ACHIEVEMENTS OF THE PRP HAS BEEN THE UPRATING OF THE
KAFUE GORGE POWER STATION FROM 900 TO 990 MW, THE REINSTATING
OF THE VICTORIA FALLS POWER STATION TO ITS FULL GENERATING
CAPACITY OF 108 MW AS WELL AS THE UP-RATING OF KARIBA NORTH
BANK POWER STATION FROM 600 MW TO 720 MW. THE TOTAL
GENERATION CAPACITY YIELDED FROM THE PRP IS 210 MW
12
SHORT TERM MEASURES TAKEN TO REDUCE LOADSHEDDING
GENERATION
CONSTRUCTING & COMISSIONING OF THE 360 MW
KARIBA NORTH BANK EXTENSION PLANT.
LOAD-SHEDDING USUALLY DONE AT PEAK TIMES, KNBE
CONSTRUCTED AS A PEAKING STATION TO MEET THE
PEAK CAPACITY SHORTFALLS
13
KNBE PROJECT- OUTFALL TOWER WORKS
UNIT # 6 SPIRAL CASING - PREPARATIONS FOR WATER PRESSURE TESTING
15
NEW GENERATION PROJECTS
ITEZHI TEZHI HYDROPOWER PROJECT (120 MW)
Owner
PPP (ZESCO/TATA)
Cost (Millions of US Dollars)
232
Duration (Years)
3.5
Operation
2015
Status
48% completed
ITEZHI TEZHI HYDROPOWER PROJECT
17
NEW GENERATION PROJECTS-SMALL HYDROS
 SHIWANG’ANDU 1 MW – USD4.15 MILLION COMPLETED IN 2012
18
NEW GENERATION PROJECTS-SMALL HYDROS
 LUNZUA-15MW-US$52M- COMMISSIONING OF UNIT 1 SCHEDULED
FOR END AUGUST 2014.
19
LUNZUA PROJECT
 LUNZUA-15MW-US$52M- COMMISSIONING OF UNIT 1 SCHEDULED
FOR END AUGUST 2014.
20
NEW GENERATION PROJECTS-SMALL HYDROS
 LUSIWASI UPPER -15MW-US$47M
 AWAITS SITE INVESTIGATIONS, AWARD OF CONTRACT,
PROJECT FINANCING
 REHABILITATION AND UPRATING OF CHISHIMBA FALLS: 6 -14.8MW
– US$46M
 PREPARATION BID DOCUMENTS IN PROGRESS, AWARD OF
CONTRACT, PROJECT FINANCING
 REHABILITATION AND UPRATING OF MUSONDA FALLS: 5-10MW –
US$32M
 CONTRACT AWARDED, ADVANCE PAYMENT MADE TO EPC
CONTRACTOR, PROJECT FINANCING. WORKS TO CONCLUDE
IN 2016
21
NEW GENERATION PROJECTS-SMALL HYDROS
 MUJILA FALLS 1.4MW-US$25M
 75% OF PREPARATORY WORKS DONE. PROJECT COMPLETION
EXPECTED 2017.
 LUSIWASI LOWER -86MW-US$164
 EPC CONTRACT AWARDED BUT CANCELLED DUE TO POOR
PERFORMANCE RECORD
22
NEW GENERATION PROJECTS
KAFUE GORGE LOWER HYDROPOWER PROJECT (750 MW)
•
•
•
•
•
OWNER:PPP (ZESCO/SINOHYDRO)
COST:USD 2 BILLION
DURATION: 6 YEARS
OPERATION:
2019
STATUS: PROJECT PREPARATORY ACTIVITIES UNDERWAY.
CONSULTANTS ARE BEING HIRED. DISCUSSIONS WITH
FINANCIERS UNDERWAY.
• GRZ HAS ALLOCATED US$ 186 M (ZMK930 TR) FROM THE EURO
BOND FOR THE KGL PROJECT AS PARTIAL EQUITY
CONTRIBUTION
23
OTHER SHORT TERM MEASURES TAKEN TO REDUCE
LOAD-SHEDDING
GENERATION
CONTRACTING OF THE 50MW FROM NDOLA ENERGY.
COMMERCIALLY AVAILABLE.
CONTRACTING OF THE 300MW FROM MAAMBA
COLLIERIES TO BE AVAILABLE IN 2015
24
NEW GENERATION PROJECTS – POTENTIAL SITES











MPATA GORGE – 540 MW
DEVIL’S GORGE – 500 MW
BATOKA GORGE – 800 MW
MUMBOTUTA FALLS - 300 MW
MAMBILIMA FALLS SITE I – 202 MW
MAMBILIMA FALLS SITE I – 124 MW
KABWELUME FALLS - 62 MW
KUNDABWIKA FALLS – 101 MW
MUTINONDO - 40 MW
LUCHENENE – 30 MW
MKUSHI – 65 MW
25
TRANSMISSION PROJECTS ONGOING
CONNECTION OF NORTH WESTERN PROVINCE TO NATIONAL GRID
 THE OBJECTIVE IS TO SUPPORT THE INCREASED ACCESS TO
ELECTRICITY AND IMPROVED QUALITY OF SERVICE BY DISPLACING
THE EXPENSIVE DIESEL GENERATORS
 COST: APPX. USD150 MILLION
 FUNDING: SECURED FROM NORDEA BANK (SWEDEN)
 STATUS: CONTRACT AWARDED TO EL TEL, NOW MOBILIZING TO SITE.
DESIGN WORKS IN PROGRESS.
 CONSTRUCTION PERIOD 24 MONTHS. COMMISSIONING APRIL 2016
26
TRANSMISSION PROJECTS ONGOING
 KARIBA NORTH BANK EXTENSION POWER EVACUATION PROJECT
 THE OBJECTIVE IS TO INCREASE TRANSMISSION CAPACITY FROM
KNBPS TO THE GRID FOR THE EVACUATION OF POWER FROM KNBE
PROJECT
 COST: USD62 MILLION
 STATUS: EPC CONTRACTOR IS SINOHYDRO, TOWER ERECTION AND
CONDUCTOR STRINGING ARE IN PROGRESS.
 CONSTRUCTION PERIOD: 18 MONTHS, PROJECT HAS HOWEVER
BEEN DELAYED.
27
TRANSMISSION PROJECTS ONGOING
KAFUE TOWN MUZUMA VICTORIA FALLS TRANSMISSION LINE
UPGRADE
 THE OBJECTIVE IS TO INCREASE TRANSMISSION CAPACITY
SOUTHWARDS FOR EXPORT TO AND FROM SAPP AND PROVIDE
EVACUATION PATH FOR NEW GENERATION PROJECTS
 SCOPE: UPGRADE 348 KM OF 220 KV LINE TO 330 KV
 COST: USD100 MILLION
 STATUS: PROCUREMENT PROCESS ALMOST COMPLETE
 FUNDING: WORLD BANK AND EUROPEAN INVESTMENT BANK
 CONSTRUCTION PERIOD: 18 MONTHS
28
OTHER TRANSMISSION PROJECTS ONGOING
 PENSULO KASAMA AND PENSULO CHIPATA 330 KV PROJECT
 THE OBJECTIVE IS TO IMPROVE POWER QUALITY IN EASTERN,
MUCHINGA, NORTHERN AND LUAPULA PROVINCES AND TO
INCREASE TRANSMISSION CAPACITY TO THESE AREAS
 COST: USD335 MILLION
 CONSTRUCTION PERIOD: 30 MONTHS FROM AUGUST 2012
29
TRANSMISSION PROJECTS ONGOING
ITT MUMBWA LUSAKA WEST TRANSMISSION LINE PROJECT
 THE OBJECTIVE IS TO PROVIDE POWER EVACUATION FOR THE ITT
POWER STATION
 COST: USD133 MILLION
 FUNDING: EIB, AFDB AND AFD
 STATUS: EPC PROCUREMENT PROCESS FOR SUBSTATION AND
TRANSMISSION LINE COMPLETE.
 CONSTRUCTION PERIOD: 18 MONTHS
30
TRANSMISSION PROJECTS ONGOING
SUPPLY TO KALUMBILA MINE
 THE OBJECTIVE IS TO SUPPLY POWER TO THE PROPOSED FQM
KALUMBILA MINE
 SCOPE: 400KM OF 330 KV DOUBLE CIRCUIT LINE AND 66 KM OF 330
KV SINGLE CIRCUIT LINE AND ASSOCIATED SUBSTATION AT
KALUMBILA
 COST: USD300 MILLION
 STATUS: TRANSMISSION LINE AND SUBSTATION WORKS IN
PROGRESS
 CONSTRUCTION PERIOD: COMMISSIONING IS EXPECTED END OF
31
2015
OTHER TRANSMISSION PROJECTS ONGOING
CONNECTION OF LUANGWA DISTRICT TO THE GRID
 THE OBJECTIVE IS TO SUPPORT THE INCREASED ACCESS TO
ELECTRICITY AND IMPROVED QUALITY OF SERVICE BY DISPLACING
THE EXPENSIVE DIESEL GENERATORS
 COST; USD63MILLION
 STATUS: CONSTRUCTION WORKS ARE IN PROGRESS.
 CONSTRUCTION PERIOD: COMMISSIONING IS EXPECTED DECEMBER
2014
32
TRANSMISSION PROJECTS ONGOING
LUSAKA TRANSMISSION & DISTRIBUTION REHABILITATION AND
UPGRADING PROJECT
 THE OBJECTIVE IS TO INCREASE THE TRANSMISSION CAPACITY
OF THE LUSAKA TRANSMISSION AND DISTRIBUTION NETWORK
 COST: USD210MILLION
 FUNDING: WORLD BANK, EUROPEAN INVESTMENT BANK AND
ZESCO LIMITED
 STATUS: FINANCING BY WB, EIB. GOING THROUGH THE
PROCESS.
 CONSTRUCTION PERIOD: COMPLETION EXPECTED BY 2018
33
ZIZABONA
FUTURE TRANSMISSION PROJECTS
 THE OBJECTIVE IS TO INCREASE REGIONAL TRADE IN POWER BY INCREASING
TRANSMISSION CAPACITY FOR NORTH TO SOUTH AND EAST TO WEST POWER TRADING
 PROJECT PROMOTED BY ZIMBABWE, ZAMBIA, BOTSWANA AND NAMIBIA
 COST: USD230MILLION
 FUNDING: DISCUSSIONS ONGOING WITH POTENTIAL FINANCIERS. DBSA, AFDB, KFW
 STATUS: TECHNICAL AND MARKET STUDIES COMPLETED, PROJECT GOVERNANCE
DOCUMENTS PREPARED
 IUMOU, IGMOU SIGNED. JOINT DEVELOPMENT AGREEMENT TO BE SIGNED BY BPC. WILL
LEAD TO SIGNING OF SHAREHOLDERS AGREEMENT
 CONSULTANT ENGAGED AND SPV REGISTRATION IS UNDERWAY
 CONSTRUCTION PERIOD: COMMISSIONING IS EXPECTED BY 2017
34
SHORT TERM MEASURES TAKEN TO REDUCE LOADSHEDDING TRANSMISSION PROJECTS
 UPGRADING (RE-CONDUCTORING) OF LUSAKA 132 KV

35
SHORT TERM MEASURES TAKEN TO
REDUCE LOAD-SHEDDING
 MEASURES TO INCREASE TRANSMISSION CAPACITIES:
 INSTALLATION OF A SECOND 125 MVA 330/132 KV
TRANSFORMER AT LUSAKA WEST TO SUPPORT 132 KV
SYSTEM. (COMPLETED IN 2012)
 UPGRADE OF MAZABUKA SUBSTATION COMPLETED IN 2012
 INSTALLATION OF COMPENSATION EQUIPMENT IN THE
COPPERBELT
36
SHORT TERM MEASURES TAKEN TO REDUCE
LOAD-SHEDDING –DISTRIBUTION PROJECTS
DISTRIBUTION PROJECTS UNDER INCREASED ACCESS TO
ELECTRICITY SERVICES.
 SPONSORED BY WB, JICA AND OTHER FINANCIERS IN PROGRESS.
 PROJECT COST US$75MILLION
37
IAES –PROJECTS STATUS
Project Name
Project Description
Kanyama Substation
ZESCO/IAES/W/002/ 12
Livingstone’s Lusaka Rd Substation
ZESCO/IAES/W/001/ 12
Grid Reinforcement - IAES
Design, Supply & Installation of Kanyama 2 x
16/25MVA 33/11kV S/S in Lusaka
Design, Supply & Installation of Lusaka Rd 2 X
15/20MVA 33/11kV S/S in Livingstone
Procurement of and Works to Install Reinforcement
Transformers at Roma 132/11kV;
Figtree132(88)/33kV; Chibombo 132(88)/33kV
Substations
Garden, Kanyama, Misisi Township
Electrification (Integrated Approach)
Intensification Works in the Copperbelt
Region ZESCO/IAES/002/ 12
Integrated Approach to Electrification in Garden,
Kanyama & Misisi Townships
Construction of Total 32km of 11kV of lines,
39x200kVA,11/0.4kV Tx’s ; 45km of 400V lines and
service connection (Intensification Works) in the
Copperbelt Region ( ie Kabushi,Chipulukusu,New
Kawama & Chibolya)
Grid Extension Works in the Northern Region Construction of Total of 30km x 11kV and
ZESCO/IAES/001/ 12
8x200kVA,11/0.4kV Tx’s; 37km of 33kV Lines,
23x50kVA,33/0,4kV Tx’s and service connection
(Grid Extension Works) in the Northern Region (ie
Lukulu,Ipusukilo mission & Lukulu farm block)
New Distribution Lines
ZESCO/IAES/JICA/001/11
Grid Extension Works in the Central Region
ZESCO/IAES/W/008/12
Project Cost
(USD)
3,406,018.75
Project Status
.
Overall Progress 98%
Overall Progress 98%
4,020,411.00
Overall Progress 20%
12,637,654.52
Progress 40%.
1,824,940.00
75% progress
2,781,965.66
2,315,061.76
Construction of lines is underway,
with 80% progress
Construction of Distribution Lines in KapiriMposhi &
Mumbwa; Azele1 & Lundazi; Mbereshi 1&2; Isoka1 & 12,781,965
Luwingu; Vic Falls & Mazabuka; Senanga & Mongu;
Mujila Falls Lower P/S
Construction of lines is underway,
with 80% progress
Construction of Grid Extension lines in Central Region
covering Mukonchi and Mangango
8,111,772.84
Line Surveys, Bush-clearing and
pole pegging completed, in
readiness for construction.
38
SHORT TERM MEASURES TAKEN TO
REDUCE LOAD-SHEDDING
 NEW KANYAMA SUBSTATION
39
SHORT TERM MEASURES TAKEN TO
REDUCE LOAD-SHEDDING
 WAYLEAVE ENCROACHMENT -NEW KANYAMA SUBSTATION
 INCOMPLETE LINE
40
SHORT TERM MEASURES TAKEN TO
REDUCE LOAD-SHEDDING
 EUROBOND PROJECTS IN LUSAKA, KITWE AND NDOLA –
COMMISSIONING TO START BY AUGUST 2014
 PROJECT COST USD 69 MILLION
 OVER 60% OF FUNDS ALREADY COMMITTED
41
DERP PROJECTS STATUS
Name of the project
Scope of Work
Progress
Expected
Commissioning
98%
August , 2014
50%
August , 2014
snagging
completed
95%
August, 2014
Civil works completed. Installation in
progress
94%
August, 2014
Civil & installation works in progress
80%
August, 2014
Erection and stringing work in
progress
98%
July, 2014
93% & 86%
September, 2014
90%
September, 2014
snagging
completed
97% & 72%
September, 2014
97% & 80%
September, 2014
Project Status
Chalala 33/11kV new Substation with two 33/11kV 26 Civil works completed. Installation in
MVA TXs
progress
Civil works for half busbar completed
Rehabilitation of Water Works 33kV busbar
& electrical works in progress for half
busbar.
New Chalala 33/11kV
Substation
Rehabilitation of 33kV waterworks bay 1 at Woodland Civil works completed & electroSub
mechanical works
Erection and stringing work in
33kV OHL, 18kM & 11kV OHL, 5kM
progress

Bonaventure 33/11 KV new Substation with two
33/11 kV 26 MVA T/Fs
Rehabilitation of Chilanga 33kV busbar
New Bonaventure
33/11kV Substation
33kV OHL, 25kM and 11kV OHL, 5kM
Upgrade 33kV
switchgear at Lusaka new 33kV outdoor Switching Station
Civil & electrical works in progress.
West Sub
Chongwe 88/33kV Rehabilitation of Chongwe 88 / 33kV Substation and Civil works completed. Installation in
Sub upgrade
install 132/ 88/ 33kV, 52 MVA TXs
progress.
Upgrade of 33kV
switchgear at
New 33kV indoor GIS Switchgear
Civil & electrical works
Liverpool Substation
New Scaw 66 /11kV Substation with two 66/11 kV 40
Civil & electrical works in progress.
MVA TXs
Construction of two New Mwambashi 66 /33kV Substation with two
Civil & electrical works in progress.
new Substations and 66/33kV 26 MVA TXs
66kV transmission New 14kM 66kV transmission line from Chambishi
lines
Copper Smelter Sub to Mwambashi Sub
Civil & installation works in progress.
New 28kM 66kV transmission line from Mwambashi
Sub to New SCAW Sub
42
84%
December, 2014
DERP PROJECTS STATUS CONT’D
Civil works, Installation &
Reinforce Makeni,
Chelstone 33/11kV new Substation with
Testing and
Matero,
two 33/11kV 26 MVA TXs
Commissioning
Chelstone,

completed.
Kabulonga & L85
Substations
Civil, Installation, Testing
Kabulonga 33/11kV new Substation with
& Commissioning
two 33/11kV 26 MVA TXs
completed.
snagging
completed
snagging
completed
Civil & electrical works in
progress.
99% & 94%
August, 2014
Civil works completed.
Installation in progress.
99% & 98%
August , 2014
Civil & electrical works in
progress.
snagging
completed
New 66/11kV Substation with two
Reinforcement of 66/11kV ,26 MVA TXs
supply at Ndeke
New 24kM 66kV transmission line from
Village in
Chambishi Copper Smelter and 10kM of
Mufulira
11kV OHL
Civil & Installation works
in progress.
95% & 80%
September ,
2014
Civil & installation works
in progress.
85%
December, 2014
33/11 kV new Substation with two 33/11
Reinforcement of kV 26 MVA TXs
supply in
Chongwe town
33kV OHL, 25kM , and 11kV OHL, 5 KM
Civil works completed.
Installation in progress
98%
August,
2014
43
33kV & 11kV installation
in progress
97%
July, 2014
Reinforce Makeni,
L85 33/11kV new Substation with two
Matero,
33/11kV 26 MVA TXs
Chelstone,
Kabulonga & L85
Substations Rehabilitation of Makeni and add two
33/11kV 26 MVA TXs
Rehabilitation of Matero and add two
33/11kV 40 MVA TXs
NEW KABULONGA SUBSTATION UNDER DERP

44
11KV BOARD AT KABULONGA SUBSTATION

45
PLANNED CAPITAL INVESTMENT 2014
ZESCO PLANS TO SPEND ZMK 5,634BN ON ASSETS AND
INFRASTRUCTURE DEVELOPMENT IN 2014
OVER 45% ALREADY UTILIZED
46
PLANNED CAPITAL INVESTMENT (BREAKDOWN)
STRATEGIC
BUSINESS UNIT
2014
CAPITAL EXPENDITURE
(ZMK’000)
GENERATION
1,342,371
TRANSMISSION
2,913,348
DISTRIBUTION
1,198,500
CORPORATE
TOTAL
179,898
5,634,117
47
TARIFFS IN THE REGION
COUNTRY
TANZANIA
AVERAGE RETAIL TARIFF US$ CENTS/KWH
8.2
SWAZILAND
11.50
ZIMBABWE
9.80
SOUTH AFRICA
8.70
NAMIBIA
8.60
MOZAMBIQUE
7.50
BOTSWANA
7.00
MALAWI
6.80
ANGOLA
ZAMBIA
6.00
6.00
IPPS AND THEIR CAPACITIES
GENERATION SOURCE
CAPACITY MW
ENERGY (MWH)
KNBE
360
488,978
ITPC
120
506,289
KGL
750
2,761,905
NDOLA ENERGY (HFO)
50
438,000
Maamba Collieries Ltd
300
2,362,205
EMCO
300
2,022,472
TOTAL
1880
8,579,849
ZESCO REVENUE DEFICITS DUE TO
PRICE DIFFERENTIALS ON IPPS
DESCRIPTION
AVERAGE TARIFF - IPPs
USc/ KWH
REVENUE (US$)
12.75
883.7M
AVERAGE SELLING
TARIFF
6.02
516.5M
TARIFF DIFERENTIAL
6.73
367.2M
REVENUE LOSS (US$ )
367.2M
POWER PURCHASE AGREEMENTS WITH
INDEPENDENT POWER PRODUCERS
 TO ENSURE LOAD SHEDDING IS MINIMIZED ZESCO HAS CONTRACTED
POWER FROM IPPS AT HIGHER COST COMPARED TO THE PREVAILING
TARIFFS ON THE MARKET.
 AVEARGE TARIFF USC/KWH -6.02
 ANNUAL LOSS OF 367 MILLION USD
51
REASONS FOR LIMITED INVESTMENTS IN THE
ELECTRICITY SECTOR
 THE ELECTRICITY ENERGY SECTOR IN ZAMBIA HAS SUFFEREED LITTLE
OR NO INVESTMENT DESPITE GOVERNMENTS INITIATIVE TO HAVE THE
INDUSTRY DEREGULATED DUE TO LARGELY:
 NON COST REFLECTIVE TARIFF
 LACK OF WILLINGNESS FROM CUSTOMERS TO PAY COST REFLECTIVE
TARIFFS
 ZAMBIA HAS THE LOWEST TARIFFS IN THE REGION.
52
POWER PURCHASE AGREEMENTS WITH
INDEPENDENT POWER PRODUCERS
DUE TO THE UNATTRACTIVE TARIFFS, THE ZAMBIAN ELECTRICITY SECTOR
IS LARGELY DOMINATED BY ZESCO –SINGLE BUYER MODEL.
53
SOLAR ENERGY OPTION
• SOLAR ENERGY CAN ONLY BE HARNESSED WHEN IT IS DAYTIME AND
SUNNY.
• LESS EFFICIENT AND COSTLY EQUIPMENT (EFFICIENCY FOR MOST
PANELS BETWEEN 17-20%)
• RELIABILITY DEPENDS ON LOCATION, CLIMATE, POLLUTION E.T.C
• ENVIRONMENTAL IMPACT OF PV CELL PRODUCTION
• REQUIRES LARGE TRACTS OF LAND FOR SOLAR PANELS AND BATTERIES
• NO FEED-IN TARIFF IN PLACE –MUST BE DEVELOPED BY MEMWD AND
ERB
54
SOLAR ENERGY OPTION
• COST OF SOLAR ENERGY VERY HIGH
• EXAMPLE TO PROCURE AND INSTALL A 25KWP IT COSTED ZESCO
ABOUT
USD 300,000
55
OTHER INITIATIVES TO REDUCE LOAD-SHEDDING
• POWER PLANTS WILL TAKE TIME TO COME ON BOARD
• THEREFORE ZESCO MANAGEMENT STEPPED UP DSM ACTIVITIES TO
ACCELERATE ENERGY EFFICIENCY INITIATIVES
• ENERGY SAVER LAMP (CFLS) DISTRIBUTION
• POWER ALERT SYSTEM
• ENERGY AUDIT AND POWER FACTOR CORRECTION
• SOLAR POWER TECHNOLOGY
• TIME OF USE TARIFF (TOU)
• RIPPLE CONTROL OF ELECTRIC GEYSERS
• PREPAYMENT METERING
56
DEMAND SIDE MANAGEMENT (DSM)
•
DSM IS A UTILITY PROGRAM AIMING TO FINE TUNE
CONSUMERS ENERGY CONSUMPTION PATTERN ACCORDING TO
UTILITIES ENERGY PRODUCTION AND DISTRIBUTION CAPACITY
•
TO REDUCE LOAD-SHEDDING
•
TO RELEASE SYSTEM CAPACITY
•
MAKE AVAILABLE
CONNECTIONS
•
REDUCED ENERGY BILLS FOR CUSTOMERS
•
PROMOTE ENERGY
ENVIRONMENT
ADDITIONAL
EFFICIENCY
POWER
AND
FOR
NEW
SAVE
THE
57
58
CFL DISTRIBUTION
59
CFL DISTRIBUTION
Consignment
Distributed
Savings (MW)
Efficacy (CFL/kW)
IAES (1 million)
913,056
57
16
ZEM (1 million)
595,832
29.79
20
1,508,888
86.79
17
Cumulative
AN 87MW NEW POWER PLANT WILL COST NOT LESS THAN US$300MILLION
WHILE ZESCO SPENT U$4.0MILLION ON THE PROCUREMENT AND
60
DISTRIBUTION OF THE CFLS
POWER ALERT SYSTEM
• THE POWER ALERT SYSTEM
IS
ESSENTIALLY A
COMMUNICATION TOOL THAT UTILIZES THE TELEVISION AND
RADIO MEDIA AS THE CHANNEL TO INFORM ELECTRICITY
CONSUMERS ON THE ENERGY SITUATION IN THE POWER
NETWORK THEREBY PROMPTING CUSTOMER RESPONSE.
• THE SYSTEM THEREFORE TRIGGERS VOLUNTARY PARTICIPATION
OF CONSUMERS IN ELECTRICITY DEMAND REDUCTION BY
SWITCHING OFF UNNECESSARY LOADS IN RESPONSE TO THE
BROADCAST POWER ALERT MESSAGE.
61
POWER ALERT SYSTEM
62
SOLAR POWER
• 305 OUT OF 1,000 SOLAR GEYSERS INSTALLED MOSTLY IN
GOVERNMENT INSTITUTIONS AND TRANSIT HOMES (WITH
566KW POWER SAVINGS).
• REMAINING SOLAR GEYSERS TO BE INSTALLED IN ZESCO
INSTITUTIONAL HOUSES MOSTLY AT POWER STATIONS & SERVICE
CAMPS
• ZESCO HQ OFFICE LIGHTING AND PARLIAMENT EMERGENCY
SUPPLY ALREADY ON SOLAR POWER
• AT ZESCO HQ 1,850 LEDS RETROFITTED IN FLUORESCENT
FITTINGS
63
RIPPLE CONTROL SYSTEM
• MEANS OF LOAD SHAVING (INSTEAD OF LOAD SHEDDING)
• MAINLY TARGETED AT ELECTRIC GEYSER LOADS
• INITIALLY TARGETED AT 100,000 RESIDENTIAL CUSTOMERS IN
LUSAKA
• PROJECTED LOAD OF ABOUT 135MW TO BE SAVED
• CAN BE IMPLEMENTED EVEN UNDER SYSTEM EMERGENCIES
• TECHNICAL SPECIFICATIONS DRAWN. FINANCING
ARRANGEMENTS UNDERWAY
64
ZESCO PROJECTS
65
CONCLUSION
• ZESCO LIMITED HAS EMBARKED ON VARIOUS PROJECTS FROM
THE PRODUCTION SIDE THROUGH TO DISTRIBUTION TO REDUCE
AND ULTIMATELY STOP LOAD-SHEDDING.
• GOVERNMENT BEING THE MAJOR SHAREHOLDER HAS GIVEN
SUPPORT THROUGH PROVISION OF EQUITY AND GUARANTEES
FOR DEBTS BEING CONTRACTED TO FINANCE THE PROJECTS.
• LOAD-SHEDDING IN ZAMBIA, THE PLAN IS THEREFORE TO
ENSURE COST REFLECTIVE TARIFFS IN ORDER TO ATTRACT
INVEST IN THE GENERATION, TRANSMISSION AND
DISTRIBUTION ELECTRICITY INFRASTRUCTURE.
66
THANK YOU!!
67

similar documents