UPDATE ON THE PROGRESS MADE BY GOVT TO MITIGATE THE POWER DEFICIT IN THE COUNTRY
Minister of Energy, Mr. Makozo Chikote flanked by Minister of Information and Media Hon. Cornelius Mweetwa addressed the nation through the media.
Here are the highlights;
✅ Zambia’s installed national power generation capacity still remains at 3,777 Megawatts.
✅ As of 31st July 2024, the national peak demand was at 2,400 Megawatts, while the available power generation is only 1,040 Megawatts. This gives a power deficit of 1,360 Megawatts.
✅ To address this deficit, ZESCO Limited together with other traders are currently importing a total of 410 Megawatts of power from within the Southern Region, leaving a net deficit of 950MW.
✅ The deficit has thus resulted in continued power rationing throughout the country.
✅ Meanwhile, Maamba Collieries Limited is scheduled to undertake its mandatory maintenance commencing end of August 2024 into September. This will cause an extra power deficit of 135 MW for the month of September as the two units for Maamba shall be taken off the grid one at a time.
✅ Energy Minister has however, indicated that progress has been made regarding measures to mitigate the impact of electricity deficit as announced at his last press briefing.
Measure undertaken;
1. Procurement of more electricity to close the shortfall;
✅ ZESCO Limited, has negotiated procurement of 218 MW of power from Eskom, South Africa and Zimbabwe Power Company (ZPC) to cushion the anticipated power deficit. The electricity procured from the two companies is expected to be injected into the national grid within the month of August 2024.
2. Deployment of Diesel Generators;
✅ ZESCO Limited has reached an advanced stage in the procurement 90 Megawatts generators to be installed at designated locations across the country.
✅ Sites have already been identified which include strategic institutions such as hospitals, schools, critical places of business and markets.
✅ The first 12 Megawatts shall be secured within the month of August 2024.
3. Accelerated private investment in new generation capacity. Financial Closure of Global Energy Transfer Feed-in Tariffs (GET FiT) 120MW;
✅ A significant milestone has been achieved to enhance the country’s energy mix through the KFW-funded GET FiT 120 Megawatts Solar Projects which have now reached Financial Closure with its lenders.
✅ This paves way for commencement of project development between now and mid-next year.
✅ These projects underscore Government’s commitment to diversify Zambia’s energy mix and ensure a sustainable future for the nation.
3. Tax free imports on solar equipment;
✅ On 30th July, 2024 more items were added to the Tax-Exemption bracket for solar.
✅ Effective midnight tonight, Government shall convey instructions to all tax agencies at entry points to update and develop the relevant codes to reflect this change.
✅ Government will over the next few days also table before Cabinet, additional lists to allow Tax free importation of Liquefied Petroleum Gas (LPG) equipment to support alternative cooking and Geothermal equipment to promote exploration and development of Geothermal power plants.
4. Presidential Solar Initiative;
✅ Government has made significant progress in ensure Government offices install solar secondary power feeds.
✅ This activity will be launched at various Government buildings starting with Ministries and other strategic Government assets within the month of August.
✅ Government extends the call to commercial houses and other private sector entities including citizens at household level to equally take the challenge and ramp up efforts in migrating to solar energy.
4. Load Management Schedule;
✅ The load management has continued and is likely to be maintained through August 2024.
✅ With the depletion of Kariba water allocation, an immediate increase in the power deficit is anticipated.
✅ Government is prioritizing this matter by seeking possible solutions to minimize the impact of possible increase in power deficit.
✅ Meanwhile, Information and Media Minister added that in wanting to shift from the monopoly of depending on hydro electricity, government is encouraging the private sector to come on board and take advantage of this unfortunate event of energy deficiency into a business opportunity going forward.
✅ Mr. Mweetwa added that private sector should also invest in mini power grids of about 5MW . Additionally, about 120 applicants have been identified in that regard.
✅ He added that in the next few weeks, the successful applicants will be given awards for them to commence their mobilization for the construction of such mini grids.
✅ The Minister has since appealed to media houses that during this period when government is asking citizens to transition from hydro electricity to solar, they should be begin to package messages that are directed towards this change.
This is a waste of time and any purchases in proportion to the shortdall are insignificant and an insult to the public. Its logical that as we head into the year the marginal decline in the shortfall will increase given the generational source of power. It would therefore be rational that Government provides a buffer suitable to mitigate that otherwise this whole presser is a joke.
Strategic measures suggested address the longterm aspect of the energy mix. Little has been done to deal with the “now”. With donor funding to address the draught sitiation no one has thought of energy to mitigate the shrink in growth of our economy. Making the 6% projection a myth. Consumptive as it may seem, we are dealing with an economy whose activities need power for the average person. From the small scale farmer, who helps to keep food prices down. To the barber ot hairstylist unable to find a job in the formal sector but is productive in the service they render; instead of stealing.
If our government is a listening government, why do they cheat us with suggestions of solutions that dont address the problem. Buy power instead of tirning us into destitutes. Clearly the loadshedding schedules are an insult. You generate information that cant be applied. You tell us that you are buying power that is a fraction of the shortfall. Then why even waste time telling us things that are not a solution? Insulting is all this is. Buy more power that will make a difference. We have less than 5months before the rains. How much of a dent would the purchase of more power have on our balance sheet as a nation. Of that draught money that wad granted. Why not use part of it to buy power or ask for some money to carry us into the rain season. Companies, families and individuals may not be able to survive at rate things are going….insulting us with this address as a solution seems rather myopic.
You are under the assumption that there is an abundance of power and transmission capacity in the sub region just waiting for us to purchase. This is not to mention the resources required to purchase much larger quantities of power. Drought relief money is earmarked primarily for providing food and water to keep people alive. So, are you suggesting a relegation of these priorities?
Myopic and mediocrity is the order of the day in this government. Whatever makes them think they are the only ones more knowledgeable than the masses leaves much to be desired. They talk of the import tax wavers on solar equipment yet the same remain highly expensive to purchase.
Why not ask Dubai to assist with Cloud-seeding Technology over Kariba dam so that our dam can be flooded again?
The small ideas being proposed will not have impact on the situation in the short to medium term on the economy!
Let’s think outside the box!
The biggest mistake in life is that of not trying!
Let’s experiment and think outside the box!
If it works, well and good!
If it doesn’t, we try again until we succeed!
The installed Capacity of Power is 3,700 MW against a consumption of 2,400 MW leaving an excess of 1,200 MW. On paper, and all things being equal, Zambia is self sufficient in Power Generation. With enough rainfall for 2 Seasons, and a total ban on exports, the problem of load shedding can be solved. Maintenance of the upstream water reservoirs to enable effective water Management and storage in Reservoirs should be a priority, and down stream run of river ( ROR) hydro power generation can be considered too. Power exports can slowly come on board when alternative sources are fully harnessed and introduced into the grid. A total migration from Hydro Electricity to solar power is wishful thinking. This is long term.
Further Lighting, Powering office equipment in ministries are insignificant, and won’t result in big savings on demand.
As for the alternatives Government is contemplating, Geothermal power generation is not an easy undertaking. The Patriotic Front Government considered this option ( refer to Government energy Policies under PF) and also constituted a Nuclear power Energy commission for nuclear power. Geothermal power wasn’t seen as an immediate solution. That’s why the government had to engage Maamba Collieries for Thermal Power.
Very few countries use geothermal Power on an industrial scale . The presence of hot springs is not the only consideration..The use of Steam from the Earth’s heat sources pauses some challenges , and my guess is that there won’t be any geothermal power station in Zambia any time soon.This is just noise to give semblance that Government is doing something.
The solution is simple:
1. Effective use of available water sources
2. Ban on exports which are responsible for over generation of electricity and depletion of our water reserves. The exports of power from 2022 have not been sustainable.
3. Investment in run of river power generation in northern part of Zambia, and down stream on existing power generation plants.
4. Increased domestic use of solar energy power, and associated solar energy farms.
5. Investment in Thermal Energy ( Coal or fuel powered ) power Stations. This is quick than venturing into the Earth’s crust searching for heat.
We don’t need over 1000 or a myriad of players in the energy sector to solve the problem of Electricity in Zambia. The problems just like in food security where Maize was exported are self made. Directed , specific interventions and load shedding will be a thing of the past.
Mistakes were made. Let’s hope you have learnt some lessons.. Don’t overgenerate power and deplete the water reservoirs, so that you get some forex , which you have thrown away through tax holidays for the mines. Your hands will get burnt.
“Ban on exports which are responsible for over generation of electricity and depletion of our water reserves. The exports of power from 2022 have not been sustainable”
Again I suggest you stop smoking that pipe as you keep hallucinating.
1. Zesco borrowed to undetake projects to build that generation capacity you speak of. That is debt that it has to pay back. Some projects were broken down into phases and as such incomplete.
2. To pay back a tariff that is sustainable is required. Currently I can I assure you without load shedding, the adjusted new tariffs would see a number of industries scale back on their production, let alone consumers.
3. If Zesco cant pay back its debts. Like your PF in will go into default and risk creditors moving. Hence the export. Please stop bring in isolationist policies when we saw exponiental global growth in most countries cause of international trade and globalization. Its naive thinking that we pass the tariffs to consumers within they will be insustainable. Your investment in the sector will be a white elephant.
There is a delicate balance that Government is undertaking between the tariff, debt and consumer. As I said, long term this may work. But the short term damage to the economy (shrink on account of the same SMEs and small scale farmers will be drastic). Six month import of power will sustain this sector. Lets remember its the Small scale farmer that feeds Zambia maizewise. The draught has hurt them and they need a crop to help them. Veggies and winter maize will carry them through. Many are on the grid.
Gone are the days when Zambia depended on the commercial farmer. Similarly we dont have a large parastatal to provide employment and the alternative has been the SME. Kill them and you will have a disgruntled group of people.
Sustain them you could be naturing a sector that is sustainable in their craft and potential of being employers. The net supply model is one that will take time.
Why? The market forces will attract the investment of solar. Lets remember this is not cheap investment. Any business person will have to save as the lenders have their naunces and most smes have limited capacity. So for it take off. They need that time. Government can buy that six month lag to in power import. Stability is cardinal. Government is not spoon feeding its teaching people to fish instead of giving fish.
Ba Hypocracy…lets get over the 1970 rethrotic. Get over the partisan gab, Gen Z is about innovation and am not even from that generation but recognise that we have to see what government policy is suggesting. Swim with the current. They may not have “absolutely correct” but ride with what is right and “twek” what is wrong. Zesco cant afford not to export even at the current tariffs. If they pass that cost to the consumer, we wont be able to afford to pay for power and power like water is life…as we know it. Let not kid ourselves