Transcript INVESTMENT OPPORTUNITIES IN THE ENERGY SECTOR

MINISTRY OF ENERGY AND WATER
DEVELOPMENT
INVESTMENT
OPPORTUNITIES IN THE
ENERGY SECTOR
Name: Patrick Mubanga
Venue: Pamodzi Hotel
Date:
26th January 2010
Presentation outline
1. Energy Profile
2. Overview of the Power Sector
3. Investment Opportunities
Map of Southern Africa
1.0 Energy Profile
• The principal source of energy in Zambia is wood
fuel (i.e. firewood and charcoal), with the largest
consumer group being households in both rural
and urban areas.
• Despite abundant hydro-power generation potential,
only 20% of the population has access to electricity.
Urban
48%
Rural
3%
Energy Profile cont…
• Petroleum ranks Second in terms of national
energy requirements (12%). The largest consumer
is the transport sector, followed by mining.
• Coal accounts for 5% of national energy
requirements: the largest consumer is the mining
industry, followed by the manufacturing sector
• The huge potential for renewable energy
sources such as solar, biomass, geothermal
among others remains largely untapped.
Supportive Policy and Institutional
Framework
1. 1217 Rural Growth Centres
identified
2.Technology options (Grid, Solar
and Mini hydro)
3.Annual budget USD50 million up
to 2030
1. New Energy Policy
4. National Access 65.9%
(90%Urban and 50.6% Rural
Area) by 2030
2. Rural Electrification Master Plan
3. Power System Master Plan
1.Prioritization of projects in terms
of Generation, Transmission
( Interconnectors ) and Distribution
2.Costings
3.Policy recommendations
2.0
OVERVIEW OF THE POWER SECTOR
a.
ZESCO LIMITED
1.
2.
3.
4.
5.
6.
7.
8.
KAFUE GORGE
990 MW
KARIBA NORTH BANK
720 MW
VICTORIA FALLS
108 MW
SMALL HYDROS
24 MW
THERMAL PLANTS
8 MW
TRANSMISSION LINES: 330kV, 220kV, 132kV, 88kV & 66kV NETWORKS
HV SUBSTATIONS, 1 NATIONAL CONTROL CENTRE
DISTRIBUTION NETWORK: 66kV, 33kV, 11kV & 400V
b.
COPPERBELT ENERGY COMPANY
1.
2.
3.
TRANSMISSION LINES: 220kV, 66kV
DISTRIBUTION AT VARIOUS VOLTAGES
GAS TURBINES
c.
LUNSENFWA HYDROPOWER COMPANY
MULUNGUSHI + LUNSEMFWA
80 MW
40 MW
Potential capacity
6000 MW
Total Installed capacity
1948 MW
ZAMBIAN GRID (66 – 330kV)
To Sumbuwanga
KAPUTA
8o
CHIENGI
MPULUNGU
KASHIKISHI
DR
CONGO
MPOROKOSO
NAKONDE
KABWELUME
(62MW)
NCHELENGE
MBERESHI
MBALA
LUNZUA
(0.75MW)
KUNDABWIKA
(101MW)
Kawambwa
Town
KALUNGWISHI RIVER
KAWAMBWA
TEA
CHISHIMBA FALLS
MAMBILIMA
ISOKA
KASAMA
Chambasitu
LUWINGU
MUSONDA FALLS
(5MW)
MUYOMBE
CHINSALI
MWINILUNGA
WEST LUNGA
at West Lunga River
(2.5MW)
MANSA
KANSANSHI
SAMFYA
MPIKA
MOMBUTUTA
SOLWEZI
LUMWANA
KABOMPO Gorge (Mine)
ANGOLA
CHAMA
MICHELO
LUANO
KANSUSWA
PENSUL
O
(34MW)
BWANA
MKUBWA
KITWE
CHAVUMA
MUFUMBWE
LUNDAZI
LUSIWASI
(12MW)
SERENJE
MAPOSA
CHIKATA FALLS
(3.5MW)
KASEMPA
ZAMBEZI
KAPIRI
MPOSHI
KABOMPO
MPONGWE
MFUE
LUSIWASI
EXTENSION
(40MW)
Mkushi
Mkushi Central
Mkushi
Farm Block
MSORO
LUNSEMFWA
(18MW)
CHIPATA
AZELE
KABWE
MULUNGUSHI
(20MW)
Luangwa
CHONGWE
Bridge
MUMBWA
ROMA
LUKULU
LUSAKA WEST
KAOMA
NAMPUNDWE
COV.
KALAB
O
MONGU
KAFUE WEST
MUZUMA
MOZAMBIQUE
LUANGWA
KAFUE GORGE
900MW(1080MW)
KARIBA NORTH
(600MW(750MW)
KARIBA NORTH
EXTENSION
(600MW(750MW)
ITEZHI – TEZHI
(120MW)
SHANGOMBO
LAKE KARIBA
KAFUE LOWER
(750MW)
CHIRUNDU
KATIMA
MULILO
SESHEKE
NAMIBIA
VICTORIA
FALLS
(108MW)
KATIMA
MULILO
BOTSWANA
EXISTING
POWER\SUBSTATIONS
AND POWER LINES
330kV
330kV
220kV
220kV
132kV
132kV
88kV
88kV
66kV
DEVILS GORGE
(800MW)
HYDRO POWERSTATION
SUBSTATION
18o
BATOKA GORGE
(800MW)
PROPOSED
POWER\SUBSTATIONS
AND POWER LINES
KARIBA SOUTH
MAAMBA
22o East
33.5o East
LEOPARDS HILL
KAFUE TOWN
MAZABUKA
SENANGA
PETAUKE
ZIMBABWE
DIESEL STATION
66kV
PROPOSED
HYDROPOWERSTATION
PROPOSED
SUBSTATION
PROPOSED
DIESEL STATION
Pictures
Existing Lusiwasi Hydro power station
(12MW)
Chishimba Mini hydro ( 6MW)
Kariba Dam ( Kariba North Bank (720
MW) + Plus extension (360 MW)
Existing ITT spillway ( Proposed site ITT 120 MW)
INVESTMENT OPPORTUNITIES
Hydropower potential
No.
Description
Capacity (MW)
Estimated Cost
(US$ ) million
1.
Status
Kafue Gorge Lower
600
1500
Open for investment
{IFC as a transaction adviser}
2.
Batoka Gorge
1600
2500
Open for investment
3.
Kalungwishi River
210
600
Open for investment
4.
Devil’s Gorge
1200
1450
Open for investment
5.
Lusiwasi Extension
40
100
Open for investment
6
Mpata Gorge
500
839
Open for investment
7.
Lupula River
(Mombotuta,Mambilima)
850
2,500
Open for investment
Batoka Gorge
Zambia-Tazania-Kenya
Interconnector Project
Nairobi
1.
2.
3.
4.
5.
6.
Distance: 1 600 kms (Pensulo Zambia to Nairobi-Kenya)
Routing: Pensulo-Mbeya-SingindaArusha-Nairobi
Capacity: 200 MW (increasing to 400
MW)
330 kV Double Circuit
Cost Estimates:
- US$ 358 Million (Phase 1: 200 MW)
- US$ 302 Million (Phase 2: 400 MW)
Possible Extensions: TanzaniaRwanda, Kenya-Uganda, RwandaEastern DR Congo
Arusha
Singinda
Dar es Salaam
Mbeya
ZAMBIA
Serenje
Petroleum and Gas
• Based on the Microbial Testing of the soil samples obtained
in the following provinces, North Western, Eastern, Western, Northern
and Southern, Oil and Gas exploration has commenced.
• The country has since been divided into 41 Oil Blocks for purposes of
awarding tenders for exploration of oil and gas in Zambia.
Petroleum and Gas cont…
• Downstream -there is potential for long- term
commingled feedstock supply every 2 years.
• There are also opportunities in construction of a
new refinery and/or partnering with
government in investment in the existing plant
• Also construction and rehabilitation of fuel
storage depots to assist the country store the
much needed fuel strategic reserves.
Coal and Uranium
• Zambia’s proven reserves of coal justify the
development of coal fired power plants
(79 million tonnes in Maamba, Southern
Province)
• The estimated investment in modern coal fired
power plants is estimated to be between US$2
million and US$ 3 million per MW.
Coal and Uranium cont…
• Exploration studies are known to cost
anything in the range of US$ 7 million to
US$ 15 million for medium scale mines
and over US$ 15 million for large scale
mining operations.
• Uranium mining is another prospective
area for investment.
Biofuels
• Zambia has :suitable climate; 30% of fresh water in
SADC Region and 42 million hectares of arable
land.
• There’s potential for both biodiesel, ethanol and
subsidiary industries related to their production.
Biofuels cont…
Investment opportunities:
1. Feedstock production, refining and blending.
2. Other opportunities are in cogeneration and gel fuel production.
3. Importation of technologies to harness renewable energy
sources such as solar, wind, geothermal, biomass and small
hydro.
4. Setting up manufacturing plants for renewable energy
technologies such as wind mills, biogas digesters solar systems
and gasifiers among others.
THANK YOU
FOR YOUR ATTENTION