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.