Zimbabwe Rural Electrification Study ESM228 Energy Sector Management Assistance Programme Report 228/00 EJol AD March 2000 JOINT UNDP / WORLD BANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP) PURPOSE The Joint UNDP/World Bank E nergy Sector Management Assistance Programme (ESMAP) is a special global technical assistance program run as part of the World Bank's Energy, Mining and Telecommunications Department. ESMAP provides advice to governments on sustainable energy development. Established with the support of UNDP and bilateral official donors in 1983, it focuses on the role of energy in the development process with the objective of contributing to poverty alleviation, improving living conditions and preserving the environment in developing countries and transition economies. ESMAP centers its interventions on three priority areas: sector reform and restructuring; access to modern energy for the poorest; and promotion of sustainable energy practices. GOVERNANCE AND OPERATIONS ESMAP is governed by a Consultative Group (ESMAP CG) composed of representatives of the UNDP and World Bank, other donors, and development experts from regions benefiting from ESMAP's assistance. The ESMAP CG is chaired by a World Bank Vice President, and advised by a Technical Advisory Group (TAG) of four independent energy experts that reviews the Programme's strategic agenda, its work plan, and its achievements. ESMAP relies on a cadre of engineers, energy planners, and economists from the World Bank to conduct its activities under the guidance of the Manager of ESMAP, responsible for administering the Programme. FUNDING ESMAP is a cooperative effort supported over the years by the World Bank, the UNDP and other United Nations agencies, the European Union, the Organization of American States (OAS), the Latin American Energy Organization (OLADE), and public and private donors from countries including Australia, Belgium, Canada, Denmark, Germany, Finland, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland, the United Kingdom, and the United States of America. FURTHER INFORMATION An up-to-date listing of completed ESMAP projects is appended to this report. For further information, a copy of the ESMAP Annual Report, or copies of project reports, contact: ESMAP c/o Energy, Mining and Telecommunications Department The World Bank 1818 H Street, NW Washington, DC 20433 U.S.A. Zimbabwe Rural ElectrificationStudy March 2000 Joint UNDP/WorldBank EnergySector ManagementAssistance Programme (ESMAP) Copyright c©1999 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing March 2000 ESMAP Reports are published to communicate the results of the l.SMAP's work to the development community with the least possible delay. The typescript of the paper therefore has not been prepared in accordance with the procedures appropriate to formal documents. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The Boundaries, colors, denominations, other information shown on any map in this volume do not imply on the part of the World Bank Group any judgement on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the ESMAP Manager at the address shown in the copyright notice above. ESMAP encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Contents Contents.............................................. iii Preface............................................. vi Acknowledgments............................................. vii Acronyms and Abbreviations............................................. viii Unitsof Measure.............................................. x CurrencyEquivalents ............................................. xi Fuel EnergyValues ............................................. xi ExecutiveSummary .............................................. I Introduction.............................................. 3 Report Structure.............................................. 3 General Background .............................................. 3 Summary of Information-GatheringMethodology .............................................. 5 EnergyDemand .............................................. 7 Summary of Energy End-Use .............................................. 7 Services Delivered and Costs.............................................. 8 Dry Cell Batteries .............................................. 8 Lead AcidlCar Batteries ............................................. 9 Solar............................................. 10 Small Hydropower............................................. 13 Wind ............................................. 14 Petroleum Electricity Generation............................................. 14 Petroleum Mechanized Power ............................................. 18 Grid Electricity............................................. 18 Coal............................................. 18 Sectoral Demand............................................. 19 Domestic............................................. 19 Commercial............................................. 21 Institutional............................................. 22 Agro-Industrial............................................. 24 Mining and Other Rural Industry ............................................. 28 Trendsand Opportunities............................................. 29 Grid Electricity............................................. 29 Non-Grid Electricity and Household/Small Commercial Use ............................................. 30 Batteries, Battery Charging, SHSs, PV Lanterns, and High-Efficiency Kerosene.................... 30 Petroleum Products and Self-Generation................................................................. 31 Non-Petroleum Self-Generation in the Large Commercial, Agricultural, and Industrial Sectors................................................................. 32 Biomass (Bagasse and Crop Residues), Wind, and Small Hydropower.................................... 32 Issues................................................................. 35 Affordability, Quality of Service and Potential Markets ...........................................................35 Geographic Disparity and Infrastructure................................................................. 37 Cost of Supply Alternatives................................................................. 37 Car Batteries ................................................................. 38 Photovoltaics................................................................. 38 Institutionaland RegulatoryFramework and On-goingActivities ...................................... 41 Govermnent................................................................. 41 iii Institutional Setting............... 41 National Energy Policy.41 Parastatals.42 Draft National Energy Strategy................................. 43 - Draft National Biomass Strategy ................................. 43 Donors (Multilateral and Bilateral) and NGOs................................. 44 Private Sector................................. 45 EnergySupply Recommendations .47 Grid Electricity.47 Grid Recommendations.47 Recommendations for Non-Grid and Household/Small-Scale Commercial Generation. 48 PV Systems.48 Solar Water Heating.48 Mechanized Power .48 Recommendations for Batteries and Battery Charging. 49 Dry Cell Batteries.49 Car Batteries .49 Recommendations for Petroleum Products and Self-Generation.4 Generating Set.49 Reconmmendationsfor Non-Petroleum Generation (Biomass, Wind, and Small Hydropower) 50 Biomass .50 Small Hydropower.51 Wind .52 Conclusions.55 Figure and Tables Figure 2-1. Share of Rural Household Demand, by Energy Source (1977) .21 Table 1-1. Estimated Rural and Urban Population (in Households), 1992-1998 .6 Table 2-1. Types and Costs of Dry Cell Batteries, November 1998 (Z$) .8 Table 2-2. Car Battery Ownership and National Estimated Distribution .9 Table 2-3. Types and Prices for New and Used Lead-Acid Batteries, November 1998 (Z$). 10 Table 2-4. Historical and Contemporary Estimates of PV Systems in Zimbabwe, 1991-1998.. 12 Table 2-5. Small Hydropower Sites in Zimbabwe, 1998.14 Table 2-6. ZESA Area Manager Estimates of Diesel Gensets, by Area and Demand Sector (1998) ...............................................................................................................................................15 Table 2-7. Summary of Institutional Generating Set Capacity in Four Provinces, 1998 (kVA) . 16 Table 2-8. Diesel and Petrol Generating Sets by Sector: ZESA-DOE/ESMAP Survey (1998).. 16 Table 2-9. Bottom-Up Estimate of Independent Rural Generating Set Capacity, 1998.17