Renewable Energy Market Landscape Study Volume I I Country Profiles
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Renewable Energy Market Landscape Study covering 15 countries in Southern and East Africa August 2017 Volume I I Country Profiles Stakeholder Maps Financed by: In association with: EEP S&EA Energy Market Landscape Study Country profiles ............................................................................. 4-145 Stakeholder Maps ......................................................................... 147-178 EEP S&EA Energy Market Landscape Study Country Profiles Renewable Energy Market Landscape Study Botswana .......................................................................................................................................................................................................................... 4 Burundi ................................................................................................................................................................................................................................ 11 Kenya ................................................................................................................................................................................................................................... 19 Lesotho ............................................................................................................................................................................................................................... 30 Malawi ................................................................................................................................................................................................................................. 38 Mozambique .................................................................................................................................................................................................................... 48 Namibia ............................................................................................................................................................................................................................... 59 Rwanda ............................................................................................................................................................................................................................... 68 Seychelles .......................................................................................................................................................................................................................... 78 South Africa ...................................................................................................................................................................................................................... 88 Swaziland ........................................................................................................................................................................................................................... 98 Tanzania.............................................................................................................................................................................................................................. 105 Uganda ................................................................................................................................................................................................................................ 114 Zambia ................................................................................................................................................................................................................................ 124 Zimbabwe .......................................................................................................................................................................................................................... 134 Danish Energy Management & Esbensen – August 2017 Botswana EEP S&EA Energy Market Landscape Study Country profile – Botswana 1. Overview Indicator Data Population 2.62 million (2015) Population density 3.2 persons/km2 i Global Tracking Framework Indicators ii Access to electricity 56.48% (70.68% urban, 37.52% rural) Access to improved cooking 62.52% RE as proportion of the mix 29.17% (of which 29.16% is traditional biomass) Other Indicators Reliance on energy imports (2014) (IEA) 43% of total final energy supply (48% of total final electricity consumption) Centralised or liberalised electricity sector Centralised Bundled generation, transmission and distribution? Yes Existence of renewable energy IPPs Yes Import duties on renewable energy products Yes (although machinery for manufacturing is duty free) RAGA/ AA/ IP RAGA – Not publicly available Renewable energy strategy Not publicly available Number of EEP Phase I & II projects 10 Total EEP contribution (% of total budget) 39% Average daily solar irradiance iii 6,640 Wh/m2/day Electricity subsidies Yes Fuel subsidies Kerosene partly subsidised iv Botswana has an extensive coal deposits estimated to provide approximately 212 billion tonnes (7.1 million tonnes of measured reserves), up to 630,000 tonnes of which are used annually to produce electricity.v Woody biomass makes up 38% of total final energy consumption, of which rural households consume an estimated 25.7%.vi The elec- tricity imports to Botswana from the South African Power Pool have reduced significantly (by 63%) between 2008 and 2011. However, load shedding reportedly continues to be necessary. The expansion of the capacity of the coal fired power station at Morupule B to meet overall current demand (capacity of 732 MW) was intended to resolve power shortages but since its commissioning in 2012 technical difficulties have interrupted supply, and it was sub- sequently put up for sale. The Botswana Power Corporation (BPC) declared a loss of US$ 180 million for 2015-16.vii Morupule A was to be refurbished but this has been delayed. Current generation capacity is 415 MW, including two diesel back-up power plants. BPC has now launched a bid for 100 MW concentrated solar power plant to attempt to make up the power deficit. Danish Energy Management & Esbensen – August 2017 4 Botswana EEP S&EA Energy Market Landscape Study The Rural Electrification Scheme increased rural connections dramatically from 4% in 1996 to 57% in 2011. The government has now introduced a standard cost for connection to increase the affordability of establishing a grid connection for poorer households.viii 2. Institutional framework Institutional structure The Ministry of Minerals, Energy and Water Resources (MMEWR) (being renamed to Ministry of Minerals, Green Technology and Energy Security (MMGE)) is responsible for providing the strategic direction for the energy sector in Botswana. The Department of Energy has the mandate for establishing the policy, legal and regulatory framework for the supply and demand-side management of energy in the country. The Botswana Energy Regulatory Authority (BERA) is an independent body that is mandated to oversee the economic sustainability of energy supply, setting tariff regulations and overseeing efficiency of supply. However, the government also provides guidance on their ob- jectives in terms of energy provision and subsidy levels. The intention is to establish a Botswana Renewable Energy Agency (BREA) that can promote and coordinate the uptake of renewable energy in the country. Figure 1: Institutional structure for the energy sector in Botswana Government Agencies / Market Participants Regulatory Framework Ministry of Minerals, Energy and Water Resources • Electricity Supply Act, 1973 (renamed to Minstry of minerals, Green Technology and (amended in 2007) Energy Security) • Botswana Biomass Energy Strategy, 2009 • National Development Plan, 2016 (for 2017-2023) • Department of Energy • Botswana Renewable Energy Agency • (BREA) • BPC Lesedi (Pty) Ltd • Regulations, codes, licenses • Strategies and plans Botswana Energy Regulatory Authority • Tariff setting Market Participants • Botswana Power Corporation • IPPs • SAPP • Public sector / customers The Botswana Power Corporation (BPC) is responsible for the generation, transmission and distribution of elec- tricity across a national grid that is focused on the east of the country, reflecting partially the density of the pop- Danish Energy Management & Esbensen – August 2017 5 Botswana EEP S&EA Energy Market Landscape Study ulation across the country. BPC Lesedi (Pty) Ltd was established in 2008 to develop renewable energy generation and specifically renewable rural electrification. It is not clear how the mandate differs from BREA. The Ministry of Environment, Wildlife and Tourism (MEWT) focuses on climate change issues and has recently published Nationally Appropriate Mitigation Actions (NAMA) (2016). Policy framework The National Development Plan (NDP) 10 places an emphasis on self-sufficiency rather than the least-cost solu- tion. The National Energy Policy (2015) takes this ambition further by aiming to become a net exporter of energy. However, based on recent challenges in expanding the generation capacity of Morupule B, this may take some time to realise. The intention of the NDP is to establish a cost-reflective tariff, and steps are being taken to achieve this. There is no indication that unbundling the transmission and distribution of energy is likely. The NDP 11 (2017-2023) promotes specific renewable