ZAMBIA SEFORALL ACTION AGENDA Sustainable Energy for All Initiative
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THE REPUBLIC OF ZAMBIA Ministry of Energy ZAMBIA SEFORALL ACTION AGENDA Sustainable Energy for All Initiative Ministry of Energy (MOE) -i- 1. FOREWORD and priority actions. It was during this workshop that five thematic working groups on access to electricity; access to clean cooking solutions; energy efficiency; renewable energy; and regulatory framework and financing mechanisms, were set-up to help define the country’s SEforALL objectives and identify the priority areas for the SEforALL Action Agenda (AA) and Investment Prospectus (IP). The results from these working groups form the basis for the country’s Action Hon. Matthew Nkhuwa, MP Agenda and the Investment Prospectus. The then UN Secretary-General, Ban Ki-Moon, Zambia has great potential for renewable launched the Sustainable Energy for All energy, which includes solar, mini-hydro, Initiative (SEforALL) in 2011 and declared the biogas, wind, geothermal and biomass. following year (2012) the year for sustainable However, these need to be harnessed and energy for all. developed to scale to support the country’s Rural Electrification Programme (REP) and The goal of the SEforALL Initiative is to: development agenda. The SEforALL Initiative mobilise stakeholders worldwide to take comes at the time at which Zambia is in the concrete action toward ensuring universal process of scaling up and diversifying its access to modern energy services; double the renewable energy programme as promulgated global rate of improvement in energy in the National Energy Policy (NEP, 2008), the efficiency and double the share of renewable Renewable Energy Feed-in-Tariff (REFiT) Policy energy in the global energy mix by 2030. (2016), the REFiT Strategy and Regulatory Support Mechanisms (2016), the Power The Government of the Republic of Zambia Systems Development Master Plan (PSDMP, (GRZ) fully embraces the objectives of the 2010) and the Rural Electrification Master Plan SEforALL Initiative and appreciates that its (REMP, 2008) which aims to increase access to timeframe coincides with the country’s electricity to 66% countrywide, 100% in urban national development blueprint – Vision 2030 areas and 51% in rural areas by 2030 in line and partly overlaps with the Seventh National with Vision 2030. Development Plan (7NDP), 2017-2021. In particular, the SEforALL objectives align with The Ministry of Energy is also in the process of Outcome 4 of the 7NDP: ‘Improved energy strengthening the electricity regulatory production and distribution for sustainable environment. To that effect, the Ministry development’ to ensure universal access to submitted two Bills to Parliament for clean, safe, reliable and affordable energy at ratification: Electricity Bill, 2017; and Energy the least cost, consistent with national Regulation Bill, 2017. These Bills were development aspirations of Zambia. In 2015, intended to give the Energy Regulation Board Zambia also submitted its Intended Nationally (ERB) greater oversight of the energy sector, as Determined Contribution (INDC) to the United well as to create a consistent tariff Nations Framework Convention on Climate determination framework, which has been Change (UNFCCC) highlighting key mitigation problematic in the past. These Bills also measures to meet its contributions to climate provide a regulatory oversight of power and change mitigation and adaptation within the bulk supply agreements and empower the energy sector. Energy Regulatory Board (ERB) to review and determine tariffs for all electricity consumers, Zambia opted to be part of the SEforALL including mining companies. These actions are Initiative in 2016, starting with a workshop in supportive of successful implementation of the May 2016 to articulate its energy trajectories SEforALL Initiative in Zambia. -ii- The SEforALL Action Agenda and Investment priority high impact initiatives. They also Prospectus will help Zambia catalyse strategic provide an opportunity for increased private partnerships and investments in the energy sector participation in the quest to deliver sector towards poverty alleviation and sustainable energy to all Zambians. As we prosperity, taking into consideration the commence the implementation of our impacts of climate change and the need to investment pipeline, we shall be strengthening achieve gender-balanced socio-economic our collaboration with the AfDB’s Africa Energy development. Market Place (AEMP) platform, which will play an important catalytic role of bringing GRZ The Action Agenda and Investment Prospectus closer to the private sector and other draw on the many on-going activities in cooperating partners in order to fast-track Zambia’s energy sector and are aligned with priority transactions so that we transform our Zambia’s commitments contained in its energy power sector and improve connectivity to policy framework and its Nationally ensure access to all. We will depend on their Determined Contribution (NDC) on climate institutional guidance and assistance to change. Both the AA and IP have been prioritise and accelerate the necessary sector developed through a consultative process and reforms to attract private investment, as well provide valuable inputs for defining the as refining the bankability of our pipeline of country’s roadmap to delivering clean energy projects and programmes for implementation. to all Zambians. The AA and IP have been developed with financial assistance from the The Ministry of Energy is pleased to take a Global Environment Facility (GEF)-funded leading role in contributing to the on-going Africa Climate Technology Centre and the efforts to address the energy needs of the SEforALL Africa Hub (both hosted by Africa African Continent and, those of Zambia, Development Bank (AfDB), the United Nations towards a green economic development path. Development Programme (UNDP) and the The Government of the Republic of Zambia is Worldwide Fund for Nature (WWF) and have convinced that sustainable energy for all is undergone extensive stakeholder review and critical to equitable human development and validation. environmental security of Zambia. The AA and IP finalisation processes were led I appeal to cooperating partners, private by the Ministry of Energy through the SEforALL sector, civil society, academia and the general Core Team (led by SEforALL Country Focal public to take an active role in realising the Point) under the Department of Energy and Zambian dream towards sustainable energy with continuous support from AfDB and UNDP. for all. It is with great pleasure and honour that I present the Zambian Action Agenda and Investment Prospectus, representing the third milestone in the four-step SEforALL process, namely: (1) Country Opt-in; (2) Stock-taking Hon. Mathew Nkhuwa, MP and Gap Analysis; (3) Country Action Plan Minister of Energy (Action Agenda and Investment Prospectus); Republic of Zambia and (4) Implementation, Monitoring and Evaluation. As we proceed to the fourth step, the Action Agenda and Investment Prospectus pave way for development of bankable and viable projects, mobilization of resources and multi- stakeholder engagement to facilitate implementation, monitoring and evaluation of -iii- 2. ACKNOWLEDGEMENTS (UNZA), Ministry of Lands and Natural Resources, Zambia Bureau of Standards (ZABS), Zambia Environmental Management Agency (ZEMA) and the Zambia Development Agency for the technical inputs into the SEforALL process. ▪ African Development Bank and the Global Brig. Gen. Emeldah Chola Environment Facility (GEF) –SEforALL Africa Hub and Africa Climate Technology Centre. The Ministry of Energy wishes to express for financial and technical support. gratitude and deep appreciation to all parties and individuals who unreservedly provided ▪ United Nations Development Programme financial support and technical assistance for facilitating and supporting the towards Zambia’s achievement of the first three government to procure funding from the milestones of the SEforALL process culminating AfDB towards development and finalisation in the Action Agenda (AA) and Investment of the Action Agenda and Investment Prospectus (IP). Prospectus. Special thanks are particularly extended to the following institutions and organisations: ▪ Other Cooperating Partners: The European Union (EU) for its active participation and ▪ Ministry of Energy (Department of Energy) – sponsorship of the 2018 Annual Zambia the Director and SEforALL Core team, for Energy Conference, where SEforALL and diligently organising and coordinating the other renewable energy issues were SEforALL process; the Planning Department; presented and discussed by a large number and the Office for the Private Participation in of stakeholders. Power Investments (OPPPI). ▪ Civil Society and Private Sector – World ▪ Other Line Ministries and Quasi Government Wide Fund for Nature (WWF) for financial Organisations – Working group members and technical support. The Copperbelt from the Ministry of National Development Energy Company (CEC), SNV, Zambia Energy Planning, Ministry of Finance (the Interim and Environmental Organization (ZENGO), Secretariat on Climate Change – ISCC), prior Centre for Energy, Environment and to the establishment of the National Engineering Zambia (CEEEZ), Utilink Ltd., Designated Authority (NDA) for the Green Zambian Association of Manufacturers Climate Fund (GCF), the Energy Regulation (ZAM), Biofuels Association of Zambia (BAZ) Board (ERB), Ministry of Lands, Natural and Muhanya Solar Ltd. for their active Resources and Environmental Protection participation