1 / 11

International Seminar REFIT AND CHALLENGES IN ZAMBIA 30 TH – 1 st March, 2015

This international seminar outlines the current situation analysis, policy framework, challenges, and future outlook of renewable energy Feed-in Tariff (REFIT) implementation in Zambia. It discusses the need for private sector participation, investment mechanisms, and regulatory frameworks to support the growth of renewable energy in the country. Key topics include the formulation of REFIT policy, stage-wise implementation, resource allocation, and addressing challenges such as funding constraints and tariff issues. The presentation highlights the potential for innovative financing solutions and the role of stakeholders in driving sustainable energy development in Zambia.

tpadilla
Download Presentation

International Seminar REFIT AND CHALLENGES IN ZAMBIA 30 TH – 1 st March, 2015

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Seminar REFIT AND CHALLENGES IN ZAMBIA30TH – 1st March, 2015 Prof F.D. Yamba

  2. PRESENTATION OUTLINE • SITUATION ANALYSIS ON REFIT IN ZAMBIA • REFIT POLICY • CHALLENGES AND WAY-FORWARD

  3. SITUATION ANALYSIS ON REFIT IN ZAMBIA • The current energy policies have established a policy framework that allows for the formulation of comprehensive and innovative renewable energy regulatory and financing mechanisms (e.g. NEP2008 supports the creation of a feed-in tariff system) • That could include REFiT, smart subsidies, low interest loans, loan guarantees and provision of tax incentives and waivers on renewable energy capital equipment. • Such measures could offer stability in the sector and create an environment to attract private sector participation and foreign direct investment

  4. SITUATION ANALYSIS ON REFIT IN ZAMBIA • Since 2008, it is only recently that a need has been triggered for a dedicated policy framework that focuses on the specific of expansion and diversification of renewable energy uptake • Through private sector involvement and use of Feed-in-Tariffs with a clear institutional & financial framework • The trigger has been due to various reasons: • Realilsation that hydro potential estimated at 6000MW is likely to be exhausted by 2034 due to Increasing energy demand at ca. 6 % per year (150-200 MW) resulting from demographic, socio-economic and resource factors

  5. SITUATION ANALYSIS ON REFIT IN ZAMBIA • High cost of grid extension to rural areas under the Rural Electrification Authority programme beyond a certain threshold distance • Energy industry pressure for energy businesses

  6. STAGE I- REFIT Policy • Formulation of the stage 1 REFIT policy is completed • Vision and Principles • The REFIT Policy is aligned and links to the NEP 2008 and the NEP 2008 vision: To harness the renewable energy sector’s potential to drive economic growth and reduce poverty • Guiding Principles • To provide a dedicated Policy framework for expanded renewable energy uptake through private sector participation • To introduce an appropriate and sustainable renewable energy feed-in-tariff system to attract private sector participation and investment

  7. STAGE I- REFIT Policy • Objectives and measures • To provide for a 3-year REFIT generation allocation of initially 150 MW, divided into 100 MW Hydropower and 50MW Non Hydro • To provide for a 3-year REFIT micro-generation allocation of initially 10 MW • Key players • Ministry of Energy-Resource plan allocations • Ministry of Finance- PPA payment guarantee. • Energy Regulation Board-Tarrif setting, Grid rules alignment, and standardized PPA and licences • ZESCO- Purchaser of electricity

  8. Stage II REFIT POLICY, REGULATIONS and TARRIF • Development of Refit Regulation • REFIT tarrif proclaimation • Rules and Regulations • PPA and application rules • Development of Rules and capacity Building • RE technology for inclusion • REFIT Framework • Model for estimating tarrifs

  9. CHALLENGES AND WAYFORWARD • REFIT policy only focusing on grid despite REA policy on capital subsidy which inherently is A REFIT element • Currently not adequate resources for capital subsidy Fund • No Mechanism for competitive bidding • It is unlikely that Ministry of Finance will have resources for PPA guarantee due to other pressing issues e.g. poverty reduction, economic growth(infrastructure development, agriculture subsidy support)

  10. CHALLENGES AND WAYFORWARD • Who pays for ZESCO’s additional cost beyond their threshold tarrif and taking into account their precarious financial status due to non-reflective tarrif • Strong lobby against cost reflective tarrif by industry especially mining and households • Way forward is innovative financing

  11. Thank You Centre for Energy Environment and Engineering Zambia (CEEEZ) Ltd, 176 Parirenyatwa Road Suite B. Fairview, P/B E721 Lusaka, Zambia Tel/Fax: +260 211 223118 Email: ceeez@gmail.com

More Related