Transcript importance of clean energy for zambia

LUNSEMFWA HYDRO POWER COMPANY LTD
Presentation to the Norfund Annual Conference
28TH August 2014
 Zambia is land linked to eight countries
 The southern African regional population is estimated to be 280 million
LHPC – THE COMPANY
- Incorporated in July 2001
- Commenced Operations in January 2002
- Shareholders at incorporation
Eskom Enterprises
Wanda Gorge Investments
De Garnier Holdings
: 51%
: 20%
: 29%
- Current Shareholders
AGUA IMARA
Wanda Gorge Investments
: 51%
: 49%
VISION
To increase the contribution to the national installed
capacity from the current 56 MW to 500 MW by the year
2020.
MISSION STATEMENT
To become an electricity supplier of outstanding stature,
positively driving the direction of energy sector in Zambia and the
region.
COMPANY KEY ASSETS


Mulungushi power Station (MPS) : 31.0 MW
Lunsemfwa Power Station (LPS) : 25.0 MW
Total Installed Capacity
: 56.0 MW



Single 66 kV line between MPS and LPS
Two 66 kV Lines between MPS and Kabwe
Mulungushi & Mita Hills Reservoirs : Total Vol. 967,000,000 m3
PRODUCTION


Production at takeover
Current Production
: 5 MW
: 56 MW
Lunsemfwa and
Mulungushi Power
Stations Location
LHPC Generation History
Production Trend Since LHPC Inception in July 2001
450
Energy Production (GWh)
400
350
300
250
200
150
100
50
0
Energy GWh
2002
2003
2004
2005/06
2007
2008
2009
2010
2011
2012
2013
193.388
215.101
212.301
198.676
237.399
291.465
303.223
329.324
406.627
401.51
403.6
LHPC’s Achievements
• Survived as the first IPP in Zambia.
• Increased Generation from 38 MW to 56 MW in 10 years.
• Strong HSE focus and no fatalities over the last 10 years.
• Excellent track record:
- Plant Availability
- Load Factors
- Forced Outages
- Planned Outages
: 98%
: 98%
: 0.5%
: 1.5%
LHPC’S SOCIAL ACHIEVEMENTS
 Moved 160 families from food insecurity to small/medium scale farmers
 Electrification and supply of free electricity to 2 schools
 Expanded school places through construction of 2x3 classroom blocks,
provision of accommodation for teachers
 Created a total 250 construction jobs during the expansion programmes and
assisted in increasing farming productivity
 Income improvement through sourcing of construction materials form
community.
 Continued support to health centres through provision of medicines and
diagnostic instruments and accommodation to health workers
 Opened up rural roads around generating plants, easing access to the
market for farm produce.
 Stable supply has improved the electricity system reliability
MULUNGUSHI POWER STATION
BEFORE
AFTER NEW UNIT 10.5 MW
LPS Powerhouse
NOW – AFTER UNIT 4 EXPANSION
BEFORE EXPANSION
Future Strategic Plan
Actions
Anchored on mature key assets
CATCHMENTS VS. FLOW & HEAD
MULUNGUSHI RESERVOIR
MITA HILLS RESERVOIR
MUCHINGA HPP GENERAL LAYOUT
MUCHINGA HPP GENERAL LAYOUT
MULUNGUSHI LOWER GENERAL LAYOUT
A CASE FOR INVESTMENT IN ZAMBIA
 25% of 13 million population connected to grid
 Total installed capacity 2000 MW, total potential of 6000 MW
hydro potential (compared to Norway 28,000 MW)
 Mining industry consumes about 50% of total and
increasing
 Mining industry represents 70% of Zambia’s exports
 Interconnected to SADC via SAPP
A CASE FOR INVESTMENT IN ZAMBIA CONT.
 History of Peace and improving democratic governance.
 Centrally located in SADC region
 Abundant Resources
 Government Enabling Legal and Regulatory framework
 Electricity Sector Investment Reform
 Fast growing economy
 Young and dynamic population
INTERCONNECTED ZAMBIA
To Sumbuwanga
ZAMBIAN POWER SYSTEM
8o
KAPUTA
 Zambia Well Connected
MPULUNGU
MBALA
LUNZUA
KALUNGWISHI
KASHIKISHI
DRC
 Interconnection being enhanced
MPOROKOSO
KALUNGWISHI RIVER
KASAMA
MAMBILIMA
MUSONDA FALLS
 Regional Market viability
NAKONDE
CHISHIMBA FALLS
LUWINGU
ISOKA
MANSA
CHINSALI
MICHELO
West Lunga
River at Mwinilunga
(1.2MW)
SAMFYA
MOMBUTUTA
LUMWANA
ANGOLA
SOLWEZI
LUANO
KANSUSWA
MPIKA
LUNDAZI
LUSIWASI
KITWE
Chavuma Falls
(1.2MW)
PENSULO
KabompoRiver at
Kabompo -Manyinga Bridge
(0.10MW)
Kabompo River at
ChakataFalls (1.2MW)
SERENJE
MAPOSA
Lufubu River at Kasempa
Bridge (0.23MW)
MFUE
MKUSHI
MPONGWE
ZAMBEZI
KAPIRI
CHIPATA
MSORO
LUNSEMFWA
KABWE
KALABO
LUKULU
PETAUKE
LUNSEMFWA LOWER /
MKUSHI PROJECT
LOCATION
MUMBWA
LUSAKA WEST
KAOMA
MONGU
KAFUE TOWN
KAFUE
LOWER
CHIRUNDU
ITEZHI - TEZHI
MAZABUKA
LAKE KARIBA
KARIBA SOUTH
km
330 kV
220 kV
132 kV
88 kV
MUZUMA
SESHEKE
VICTORIA
FALLS
66 kV
1941
348
77
717
2791
POWER STATIONS
NAMIBIA
East
LUANGWA
KEY
KARIBA NORTH
(120MW)
East
o
KAFUE
GORGE
SENANGA
o
33.5
LEOPARDS HILL
KAFUE WEST
22
AZELE
KATIMA
MULILO
18
BOTSWANA
o
PROPOSED POWER STATIONS
ZIMBABWE
SUBSTATIONS
PROPOSED SUBSTATIONS
DIESEL STATIONS
PROPOSED LINES
330 kV
220 kV
132 kV
88 kV
66 kV
IMPORTANCE OF CLEAN ENERGY FOR ZAMBIA
•
CURRENT SITUATION
•Resource Rich
•Abundant Mineral Resources (Copper, Manganese, Colbalt ,etc)
•Water Resources (40% of SADC water)
•Fertile Land
•Young population
•High poverty levels
•High unemployment
•Un exploited resource & potential
•Main reasons
•Lack of financial resources to turn resources into wealth
•Severe energy shortage rendering the majority of population into
development spectators
IMPORTANCE OF CLEAN ENERGY FOR ZAMBIA
• DESIRABLE SITUATION
•Provision of financial resources for clean energy development
•With available energy provide financial resource for sustainable natural
resource development leading to economic development
At Bell Point 20 June 2012
Tusen Takk !