MINISTRY OF ENERGY AND WATER DEVELOPMENT INVESTMENT OPPORTUNITIES IN THE ENERGY SECTOR Name: Patrick Mubanga Venue:Pamodzi Hotel Date:26 th January 2010.

MINISTRY OF ENERGY AND WATER DEVELOPMENT

INVESTMENT OPPORTUNITIES IN THE

ENERGY SECTOR

Name: Patrick MubangaVenue: Pamodzi HotelDate: 26th January 2010

Presentation outline

1. Energy Profile

2. Overview of the Power Sector

3. Investment Opportunities

Map of Southern Africa

1.0 Energy Profile

• The principal source of energy in Zambia is wood fuel (i.e. firewood and charcoal), with the largest consumer group being households in both rural and urban areas.

• Despite abundant hydro-power generation potential, only 20% of the population has access to electricity.

- Urban 48%

- Rural 3%

Energy Profile cont…

• Petroleum ranks Second in terms of national energy requirements (12%). The largest consumer is the transport sector, followed by mining.

• Coal accounts for 5% of national energy requirements: the largest consumer is the mining industry, followed by the manufacturing sector

• The huge potential for renewable energy sources such as solar, biomass, geothermal among others remains largely untapped.

Supportive Policy and Institutional Framework

1. New Energy Policy

2. Rural Electrification Master Plan

3. Power System Master Plan

1. 1217 Rural Growth Centres identified

2.Technology options (Grid, Solar and Mini hydro)

3.Annual budget USD50 million up to 2030

4. National Access 65.9% (90%Urban and 50.6% Rural Area) by 2030

1.Prioritization of projects in terms

of Generation, Transmission

( Interconnectors ) and Distribution

2.Costings

3.Policy recommendations

2.0 OVERVIEW OF THE POWER SECTORa. ZESCO LIMITED

1. KAFUE GORGE 990 MW2. KARIBA NORTH BANK 720 MW3. VICTORIA FALLS 108 MW4. SMALL HYDROS 24 MW5. THERMAL PLANTS 8 MW6. TRANSMISSION LINES: 330kV, 220kV, 132kV, 88kV & 66kV NETWORKS7. HV SUBSTATIONS, 1 NATIONAL CONTROL CENTRE8. DISTRIBUTION NETWORK: 66kV, 33kV, 11kV & 400V

b. COPPERBELT ENERGY COMPANY

1. TRANSMISSION LINES: 220kV, 66kV2. DISTRIBUTION AT VARIOUS VOLTAGES3. GAS TURBINES 80 MW

c. LUNSENFWA HYDROPOWER COMPANY

MULUNGUSHI + LUNSEMFWA 40 MW

Potential capacity 6000 MW

Total Installed capacity 1948 MW

D R CONGO

TANZANIA

MA

LA

WI

MOZAMBIQUE

ZIMBABWE

NAKONDE

KASAMA ISOKA

CHINSALI

MPOROKOSO

LUWINGU

MPIKA

PENSULO

SERENJE

CHIPATA

CHIRUNDU

LEOPARDS HILL

KARIBA SOUTH

MUSONDA FALLS (5MW)

LUSIWASI(12MW)

MULUNGUSHI(20MW)

MSORO

LUNDAZI

MFUE

AZELELUNSEMFWA(18MW)

CHISHIMBA FALLS

LUNZUA(0.75MW)

MBALA

SAMFYA

KASHIKISHI

PETAUKE

MOMBUTUTA

CHIENGI

LUAPULA RIVER

To Sumbuwanga

KALUNGWISHI RIVER

MPULUNGU

NAMIBIABOTSWANA

ANGOLA

KALABO MONGU

SENANGA

SESHEKE

SOLWEZI

ITEZHI – TEZHI(120MW)

VICTORIA FALLS(108MW)

MUZUMA

MICHELO

LUANO

KITWE

MAPOSA

KANSUSWA

KABWE

KAPIRIMPOSHI

MPONGWE

LUSAKA WEST

KAFUE WEST KAFUE TOWN KAFUE LOWER(750MW)KAFUE GORGE

900MW(1080MW)

KARIBA NORTH(600MW(750MW)

LAKE KARIBA

MAZABUKA

MUMBWA

MANSA

MAMBILIMA

KA

FUE

RIV

ER

ZA

MB

EZ

I

RIV

ER

CHAMBESHI

RIVER

WEST LUNGA at West Lunga River(2.5MW)

KASEMPA CHIKATA FALLS (3.5MW)

MUFUMBWE

LUKULU

KAOMA

220kV

22o East

33.5o East

8o

18oKATIMAMULILO

ZAMBEZI

LUANGWA

132kV

88kV

66kV

330kV

EXISTING POWER\SUBSTATIONSAND POWER LINES

PROPOSED POWER\SUBSTATIONSAND POWER LINES

330kV

220kV

132kV

88kV

66kV

HYDRO POWERSTATION

SUBSTATION

DIESEL STATION

PROPOSED HYDROPOWERSTATION

PROPOSED SUBSTATION

PROPOSED DIESEL STATION

CHONGWE

CHAVUMA

KABOMPO

MWINILUNGA

KANSANSHI

LUMWANA (Mine)

KAPUTA

NCHELENGE

CHAMA

KUNDABWIKA (101MW)

KABWELUME (62MW)

KAWAMBWA TEA

MBERESHI

LUSIWASIEXTENSION(40MW)

KARIBA NORTHEXTENSION(600MW(750MW)

BATOKA GORGE(800MW)

DEVILS GORGE(800MW)

BWANA MKUBWA

ROMA

COV.

NAMPUNDWE

MAAMBA

KATIMAMULILO

KABOMPO Gorge(34MW)

LuangwaBridge

Mkushi

MkushiFarm Block

Mkushi Central

Kawambwa Town

Chambasitu

SHANGOMBO

MUYOMBE

ZAMBIAN GRID (66 – 330kV)

Pictures Existing Lusiwasi Hydro power

station (12MW)

Kariba Dam ( Kariba North Bank (720 MW) + Plus extension (360

MW)

Chishimba Mini hydro ( 6MW) Existing ITT spillway ( Proposed site - ITT 120 MW)

INVESTMENT OPPORTUNITIES

Hydropower potentialHydropower potentialNo. Description Capacity

(MW)Estimated

Cost (US$ ) million

Status

1. Kafue Gorge Lower 600 1500 Open for investment{IFC as a transaction

adviser}

2. Batoka Gorge 1600 2500 Open for investment

3. Kalungwishi River 210 600 Open for investment

4. Devil’s Gorge 1200 1450 Open for investment

5. Lusiwasi Extension 40 100 Open for investment

6 Mpata Gorge 500 839 Open for investment

7. Lupula River (Mombotuta,Mambilim

a)

850 2,500 Open for investment

Batoka Gorge

Zambia-Tazania-Kenya Interconnector Project

1. Distance: 1 600 kms (Pensulo - Zambia to Nairobi-Kenya)

2. Routing: Pensulo-Mbeya-Singinda-Arusha-Nairobi

3. Capacity: 200 MW (increasing to 400 MW)

4. 330 kV Double Circuit

5. Cost Estimates:

- US$ 358 Million (Phase 1: 200 MW)

- US$ 302 Million (Phase 2: 400 MW)

6. Possible Extensions: Tanzania-Rwanda, Kenya-Uganda, Rwanda-Eastern DR Congo

Serenje

Mbeya

Singinda

Arusha

Nairobi

Dar es Salaam

700km

487

km

260km

ZAMBIA

Petroleum and Gas• Based on the Microbial Testing of the soil samples obtained

in the following provinces, North Western, Eastern, Western, Northern and Southern, Oil and Gas exploration has commenced.

• The country has since been divided into 41 Oil Blocks for purposes of awarding tenders for exploration of oil and gas in Zambia.

Petroleum and Gas cont…

• Downstream -there is potential for long- term commingled feedstock supply every 2 years.

• There are also opportunities in construction of a new refinery and/or partnering with government in investment in the existing plant

• Also construction and rehabilitation of fuel storage depots to assist the country store the much needed fuel strategic reserves.

Coal and Uranium

• Zambia’s proven reserves of coal justify the development of coal fired power plants

(79 million tonnes in Maamba, Southern Province)

• The estimated investment in modern coal fired power plants is estimated to be between US$2 million and US$ 3 million per MW.

Coal and Uranium cont…

• Exploration studies are known to cost anything in the range of US$ 7 million to US$ 15 million for medium scale mines and over US$ 15 million for large scale mining operations.

• Uranium mining is another prospective area for investment.

Biofuels

• Zambia has :suitable climate; 30% of fresh water in SADC Region and 42 million hectares of arable land.

• There’s potential for both biodiesel, ethanol and subsidiary industries related to their production.

Biofuels cont…

Investment opportunities:

1. Feedstock production, refining and blending.

2. Other opportunities are in cogeneration and gel fuel production.

3. Importation of technologies to harness renewable energy sources such as solar, wind, geothermal, biomass and small hydro.

4. Setting up manufacturing plants for renewable energy technologies such as wind mills, biogas digesters solar systems and gasifiers among others.

THANK YOU

FOR YOUR ATTENTION