Power Sector in – Opportunities for Private Companies

Presentation of the Information Workshop on Decentralised Energy Supply and Load Management in Zambia Berlin, Germany, December 2017 Outline

• Structure of Zambia’s electricity sub sector • Legal and Regulatory regime • Generation mix • Investment opportunities for private German Companies in the sector • Wind Sun Energy Zambia Limited – Company Profile – Project outlook – Networking opportunities Structure of the Electricity Sub-sector Legal and Regulatory Framework

• Ministry of Energy: – Implements government policy framework and guidance • Zambia Development Agency: – One stop shop for all Investors under Ministry of Commerce, Trade and Industry – Drives economic growth and development – Promotes Trade and Investment • Zambia Bureau of Standards – Development and enforcement of Standards – Provides facilities for examination and testing for compliance Legal and Regulatory Framework

• Office for Promoting Private Power Investment (OPPPI): – Unit under MoE responsible for attracting investment in power generation facilities above 20MW – Coordinates expansion of the interconnected power system • Industrial Development Corporation – Government-owned investment company – Taken up development of generating facilities between 10MW and 20MW • Energy Regulation Board: – Independent energy regulator – Provides regulation framework and harmony among the sector players for the benefit of consumers – Responsible for issuance and administration of licenses – Interim manager of the Grid Codes • Rural Electrification Authority: – Government institution responsible for implementing rural electrification – Management of the Master Plan – Management of the Rural Electrification Fund – Develops mechanisms for operation of grid extension network – Administration of capital subsidies – Development of generating plant of capacities up to 10MW Installed Capacity

COMPANY POWER PLANT GENERATION CAPACITY (MW)

Zesco Hydro 2217

Zesco/ Tata Hydro 120

Maamba Coal 300

Lunsemfwa Hydro Hydro 34

Ndola Energy HFO 50

CEC Diesel 80

TOTAL 2,801 Zambia’s Power Generation Mix Transmission/ Distribution Capacity

VOLTAGE LENGTH (km) LEVEL Zesco 330kV 2241 220kV 571 Transmission 132kV 202 88kV 794 66kV 3217 33kV 2100 Distribution 11kV 1037 CEC Transmission 220kV 246 66kV 678 ELECTRICITY CONSUMPTION PER SECTOR

Industrial and Agriculture, Commercial, 10% 20% Residential, 15%

Social Services, 5% Export, 2%

Mining, 48%

Source: Ministry of Energy Opportunities • Economic activities • Hydro-dominated power generation • Scaling solar opportunity • ReFit program • Low electricity access • Regulatory reforms – Establishment of Grid Codes and Open Access regime – Standard PPAs Zambian Power System To Sumbuwanga 8o

MPULUNGU

MBALA LUNZUA MBEYA KALUNGWISHI KASHIKISHI MPOROKOSO

CHISHIMBA FALLS NAKONDE CONGO (DR)

MAMBILIMA KASAMA MUSONDA FALLS LUWINGU ISOKA

MANSA CHINSALI

WEST LUNGA MICHELO SAMFYA RIVER AT MWINILUNGA (3.5MW) MOMBUTUTA

SOLWEZI ANGOLA LUANO KANSUSWA LUSIWASI LUNDAZI CHAVUMA KITWE MPIKA FALLS KABOMPO RIVER AT PENSULO (20MW) KABOMPO-MANYINGA BRIDGE SERENJE (0.10MW) MAPOSA CHIKATA FALLS LUFUBU RIVER MFUE (10MW) AT KASEMPA BRIDGE MKUSHI (0.23MW) MPONGWE KAPIRI CHIPATA MSORO LUNSEMFWA KABWE AZELE KALABO MUMBWA MULUNGUSHI PETAUKE KAOMA LUSAKA WEST 33.5o East MONGU LEOPARDS HILL MOZAMBIQUE KAFUE TOWN KAFUE LUANGWA KAFUE WEST LOWER CHIRUNDU

ITEZHI - TEZHI KAFUE KEY km PROPOSED LINES GORGE SENANGA MAZABUKA 330 kV 1941km 330 kV KARIBA NORTH KEY 220 kV 348 220 kV (120MW) KARIBA SOUTH LAKE KARIBA 132 kV 77 132 kV MUZUMA 88 kV 717 88 kV 66 kV 2791 66 kV 22o East SESHEKE VICTORIA POWER STATIONS FALLS PROPOSED POWER STATIONS

KATIMA SUBSTATIONS o MULILO 18 PROPOSED SUBSTATIONS NAMIBIA ZIMBABWE DIESEL STATIONS BOTSWANA Source: OPPPI DIESEL STATIONS Power Generation Capacities COMPANY POWER PLANT (MW) CAPACITY FACTOR (%)

Kariba North 720 69 Kariba North Extension 360 10 Kafue Gorge 990 69 Victoria Falls 108 89 Zesco Lusiwasi 40 Chishimba >89 Musonda 63 Lunzua 52 Zesco/ Tata Hydro 120 58 Maamba Coal 300 80 Lunsemfwa 34 76 LHPC Mulungushi 64 Ndola Energy HFO 50 CEC Diesel 80 0 Wind Sun Energy Zambia Limited The Company

• Private company, limited by shares • Incorporated in 2009 by 2 Engineers with a view to participate in the realisation of increased access to electricity in Zambia • Supplied over the Zambian market over 5000 LED lighting systems, thereby contributing to the reduction of energy consumption by lighting of over 4,000 kWh per day • WE BELIEVE THAT EVERY KWH SAVED LIGHTS UP THE NEXT HOUSE! Strategic Positioning

• Highly experienced Engineers, Financial Managers, Business Strategists and Environmental specialists • Positioning ourselves as a private investor/ operator of RE generation facilities Our 3-Year Vision

To attain annual Renewable Energy Power generation of 2,000MWh, and savings from Energy Efficiency strategies of 50,000MWh . Our 3-Year Objectives

• Install and operate at least 4MW of mini and small hydro generation, connected to off-grid networks. • Install and operate at least 1 grid tied solar network supplying a business, shopping mall, school, hospital or residential premises • Retrofit at least 100,000 LED lights Current Projects

• Pre-feasibility of a mini grid, 200km east of Lusaka • Reconnaissance studies for micro/ mini hydro generators • Operation of a distribution network in Lusaka with 1000 connected customers Project No. 1: Development of a Solar hybrid mini grid at Mpanshya Mission (St. Lukes’ Mission Hospital), 200km east of Lusaka CURRENT PROJECTS Mpanshya Mission Solar hybrid Mini grid • Mission Hospital operated by the Bolomeo Sisters • 200km East of Lusaka • Infrastructure under the mission includes – Hospital, catering for over 60,000 people – Nursing college with over 300 students – Nursery school – Home for the aged with an adjacent bakery business – 40 housing units Mpanshya Mission Solar hybrid Mini grid: Problem Statement • The place has no electricity, save for 80kVA diesel generator: – At least 300l diesel/ week – If available, only operates for 3 hours/ day – Many frequent breakdowns • Cooking is by firewood – Carbon footprint – Deforestation • Grid electricity – At least 1 year away – Provides opportunity for GetFit Mpanshya Mission Solar hybrid Mini grid Mpanshya Mission Solar hybrid Mini grid Current Projects: Mpanshya Mission Electrification Mpanshya Mission Solar hybrid Mini grid: Project Status • Initial study – Needs assessment – MoU of intent with the Mission – Conceptual desktop designs • Next steps: – Load assessment – Detailed feasibility Project No. 2: Development of a Mini hydro Pilot Project along Manshya river, Shiwangandu CURRENT PROJECTS Manshya river Mini hydro

• Development of a mini hydro demonstration project, using hydro-kinetic technology: – Either to feed into an off-smart-grid, supplying schools, health centres and households within a determined catchment area, or – Feeding into an existing network supplied by 1MW Shiwang’andu hydro power plant, which grid is isolated with a possibility to connect to the national grid • Site is in Muchinga Province, 750km North-East of Lusaka – Downstream of 1MW Shiwang’andu hydro owned by the national utility Manshya river Mini hydro PROPOSED FARM PLOT FOR CHANDA LINUS K, CHIEF MUKWIKILE. SHIWANG'ANDU DISTRICT. APPROX. 65 HECTARES 337000.000000 338000.000000 339000.000000 340000.000000 341000.000000 342000.000000 343000.000000 344000.000000 0 0

0 N 0 0 0 0 0 0 0 0 0 . . 0 0 0 0 0 0 8 8 6 6 7 7 8 8 0 0 0 0 0 0 0 0 0 0 0 0 . . 0 0 0 0 0 0 7 7 6 6 7 7 8 8 0 0 0 0 0 0 0 0 0 0 0 0 . . 0 0 0 0 0 0 6 6 6 6 7 7 8 8 0 0 0 0 0 0 0 0 0 0 0 0 . . 0 0 0 0 0 0 5 5 6 6 7 7 8 8 0 0 0 0 0 0 0 0 0 0 0 0 . . 0 0 0 0 0 0 4 4 6 6 7 7 8 8 337000.000000 338000.000000 339000.000000 340000.000000 341000.000000 342000.000000 343000.000000 344000.000000 Scale1:50,000 sheet no. 1131B1

4 1

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a n s h a

m 0 2

5

1

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APPROX.65 HA. 0

0 m

3

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6 7 7 POINT X COORD Y COORD 1:10,000 1 341320 8767361 2 2 340574 8766560 3 339881 8766904 4 340074 8767380 OCT 2015 TSB MUCHINGA,COMPILED; PHIRI N.L

roterro tSMAerroterroRTterrot eFreer Stream Turbine Kinetic Micro Hydro System Hydro kinetic turbine

Output 200 – 5000 W

Dimensions Length: 2640 mm Width: 1120 mm Height: 1120 mm

Rotational 90 – 230 rpm Speed

Weight 300 kg

Number of rotor 3 blades

Rotor-Ø 1000 mm

Output curve of the generator Specifications:

Max. power The permanent magnet underwater output at 3,1 m/s generator provides AC power Expandable system with multiple

turbines Available as an off-grid solution, grid connected and hybrid version Scope of delivery and specifications can be adapted to special projects Max. power output at 3.1 m/s The turbine placed on the bottom of the river/ canal.

River characteristics:

Min. depth: 1.1 m Min. width: 1.2 m Min. river flow: 1.0 m/s Max. river flow: 4 m/s

Smart Hydro Power GmbH, Alte Traubinger Straße 17, 82340 Feldafing (Garatshausen)/Germany, Tel.: +49 8158 / 90 78 97-10, Fax: +49 8158 / 90 78 97-17, [email protected], www.smart-hydro.de

Our Interest

• Project promoters and financiers – Feasibility stage of the pilot project • Replicability of the technology is very high – Possible collaboration with Rural Electrification Authority of Zambia THANK YOU VERY MUCH! VIELEN DANK!