TJ’s Corner
Let’s break down the implications of Open Access to Transmission policy decision for Zambia and ZESCO:
1. Separation of the system operator function from ZESCO:
– This means that the role of operating and managing the electricity transmission and distribution system will be separated from ZESCO, the national utility company.
– This separation will create an Independent System and Market Operator (ISMO) that will be responsible for the overall management and coordination of the electricity grid.
2. Open access to the transmission and distribution lines:
– This policy allows for third-party users (such as independent power producers and large consumers) to access the electricity transmission and distribution networks owned by ZESCO.
– It creates an “open access” market structure, where multiple electricity providers can compete to sell power to consumers, rather than ZESCO being the sole provider.
3. Benefits and implications:
– Promotes competition in the electricity market, which can lead to better quality services and lower prices for consumers.
– Encourages investment in transmission and distribution infrastructure, as third-party users will pay for network use, providing revenue for grid development and maintenance.
– Attracts more investment in power generation, as independent power producers can now sell directly to large consumers, such as mines, without ZESCO being the sole off-taker.
– Enhances electricity security of supply, which is crucial for supporting the government’s industrialization and economic diversification agenda.
– Lessens the financial burden on ZESCO, as it will no longer be forced to be the sole off-taker for all power produced in the country.
Successful examples of this model:
– In many countries, open access to electricity transmission and distribution networks has been implemented to promote competition and efficiency in the power sector. Some successful examples include:
– India: The Electricity Act of 2003 introduced open access to the transmission and distribution networks, leading to increased private investment in the power sector and improved reliability of supply.
– European Union: The EU’s Electricity Directive has mandated open access to transmission and distribution networks since the late 1990s, fostering competition and integration of national electricity markets.
– United States: Several states, such as California and Texas, have implemented open access policies, leading to the development of competitive wholesale and retail electricity markets.
Overall, this policy decision by the Zambian government represents a progressive step towards modernizing the country’s electricity sector, promoting competition, attracting investment, and improving the financial stability of ZESCO. If implemented effectively, it has the potential to bring significant benefits to the Zambian economy and its citizens.
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The article is silent on who’s going to own or operate the transmission network. The economics of it is clear and perhaps undoubted. I’m not sure that there’s appetite for privatisation at the moment. I therefore want to submit here and now that the electricity transmission and distribution network should remain in Zambian ownership that is, the state, for the foreseeable future, if not forever.
The ISMO should be majority Zambian owned!
It should be listed on LuSE for citizens.
Otherwise long overdue!
Progressive policy which should make Zambia energy rich!
Zambia’s challenge remains IMPLEMENTATION! We give a huge chunk of our cake away and leave crumbs for ourselves!
Chikubabe, don’t celebrate before you know in depth who are going to be the beneficiaries. 95% not the common people from Kanyama, Matero or Makurulu, we have witnessed this pattern of selling the most precious commodity of the people of Zambia. How many Zambians with $10000 or $20000 to buy shares ? It is stealing from the ordinary people.
The crooked and criminal Mingalatoon’s eyes have always been focused on the Zesco Transmission and Distribution infrastructure. They tried it immediately they came into power. But there was resistance from the public and they shelved the idea,but didn’t abandon it. Now they have invented a stealthy Way of laying their sticky fingers on the Transmission and Distribution assets of the Country. OUR NATIONAL GRID.
They have chosen to make their moves after deliberately creating a crisis in electricity supply and subjecting the citizens to unbearable power cuts… capitalizing on the helplessness and weariness of the people , they then make their moves to hoodwink the people that a grand solution is being offered. ( The same strategy they had employed with criminal Argawal’s Vedanta – KCM surrender ) . BOLD CROOKS and CRIMINALS.
They have brought in terms like open access and independent system and market operator. But like all crooks and criminals they are silent on who this operator will be.
They entered into fake power purchase agreements with suspect power supply companies, with no generation capacities, and some with no traceable websites – mere brief case companies. 1000MW, 2500MW, 3000MW solar power supply figures started flying around. ( ONE OF THESE FAKES WILL EVENTUALLY OWN OUR NATIONAL GRID)
There are only three African countries with fully fledged Solar generation power plants… South Africa, Egypt and Morocco..and the fakes are no where near the big Solar Energy Suppliers..
The Scheme the crooked and criminal Mingalatoon has devised is :
1. Create an Electricity Supply Crisis..a seemingly desperate and zero option crisis..12-14 hours power cuts. ( which they have done).Note that they can easily import power , and not the paltry 188 MW they are currently importing.
2. Dangle fake Solar Energy Suppliers with
outrageous figures and enter into dubious power purchase agreements ( which they have done)..1000MW, 2500MW, 3000MW etc
3. Increase Tariffs ( which they have done )
4. Get the Transmission and Distribution infrastructure ( the grand finale )..the same way Milupi got Power Division to make it CEC , a power trading company.
The simple questions one can ask the crooked and criminal Mingalatoon are:
1. What is wrong with Zesco as a unit managing our national grid, entering into power purchase agreements, and allowing these supplies to be feeding our national grid , without bringing in an Independent System and Market operator ?
2. Why can’t a division of Zesco not be the System and Market Operator? There are already Engineering and administrative structures through out the country performing such functions! AND THEY HAVE BEEN DOING THIS ALREADY,
The crooked and criminal Mingalatoon won’t have answers to the above questions..instead he will hide in propaganda from anonymous articles like the one above.
May those with eyes see through the schemes the crooked and criminal Mingalatoon is employing at Zesco …and in whose pockets the Transmission and Distribution infrastructure will ultimately end up.
And know that there won’t be any significant Power Generation from those fakes being paraded..
the 3000MW we are getting from Zesco will remain the single Major source of our power, which the middle men they have created will appropriate and be supplying to consumers… using our national grid.
Despite what I have said above, I still feel that the discussion is hopelessly one-sided. How many independent power investors are waiting for this restructuring of the sector to throw their hut in the ring? Beware the lone story.