Energy and Poverty Reduction
Strategy Process, the Zambian Case
Presented at the Energy Access
for the Rural Poor Workshop
Hotel VIP, Maputo, Mozambique, 12th April 2005
Geoffrey Musonda
Acting Assistant Director
Department of Energy
Lusaka, ZAMBIA
contents
1.
2.
3.
4.
5.
6.
7.
Introduction
Household energy
Strategy for poverty reduction
Summary of expected outputs
Progress on projects and programmes
Conclusion
The End
introduction
Zambia has high population of people classified as poor.
Households classified as poor at national level
1991 (69.7%), 1996 (69.2%), 1998 (73.2%)
Poverty pronounced in rural areas
Energy sector
Firewood and charcoal 80% total national energy supply
Electricity 11% total national energy supply
1.5% of household energy demand (20% average electrification rate at
2% in rural areas)
400MW surplus capacity
6000 MW hydropower potential
1,715.5 MW installed capacity
introduction cont…
Hydropower 92% of installed capacity
Proven coal reserves 30 million with several hundred
millions probable reserves
Petroleum 100% imported
421100 tonnes of crude oil imported in 1999
Renewable energy
Solar energy, 3,000 sunshine hours annually,
4.5kWh/m2/day
Wind speed averaging 2.5m/s at 10m above the ground,
mainly suitable for mechanical applications
Household Energy
Urban households relay on:
Electricity, charcoal, firewood and kerosene. To some extent
candles are also used for lighting.
Table 1 shows the proportions of households using specified
fuels for lighting and cooking.
Household Energy cont.
Table 1: Fuels for cooking and lighting for urban households – 1996 and 1998
Energy
Source
Electricity
Kerosene
Charcoal
Firewood
Candles
Diesel
Total
1996
36
51
13
100
Proportion (%)of urban population using it for
Cooking
Lighting
1998 Increase/Decrease 1996 1998 Increase/Decrease
39
+3
45
48
+3
39
35
-4
49
-2
12
-1
15
16
+1
1
1
-1
100
100
100
Household Energy cont…

Between 1996 and 1998, the proportion of households
meeting their lighting needs from kerosene declined by
four percent while that for electricity increased by three
percent. The other one percent of the urban households
probably substituted kerosene by candles as those that
met their lighting needs by using candles increased by one
percent over the same period.
Strategy for Poverty Reduction
Poverty Reduction Strategy Paper (PRSP) 20022004





reduce poverty levels in the country and stimulate
economic development
outlines the programmes that need to be implemented in
order to improve the welfare of citizens.
translated into the Transitional National Development Plan
(TNDP) 2002-2005 (MFNP, 2002).
energy sector, there is great potential for poverty
reduction activities

poverty and energy consumption are directly related.
Strategy for Poverty Reduction cont…

TNDP has the following main programmes:

Increased access to electricity by both rural and
urban households.



The aim is to increase access by rural households from the
current 2% to 15% by the year 2010. In the urban areas, the
target is to increase access from 48% in 1998 to 70% in 2010.
Enhance capacity of current energy infrastructure
under the Power and Petroleum Rehabilitation Projects.
Create new energy infrastructure, which will include
the Zambia-Tanzania-Kenya Interconnector, Zambia-DRC
Interconnector, Electrification of Mkushi Farm Block, Kafue
Gorge Lower and Itezhi-tezhi Hydro Electric Power
Stations and Mini-hydro stations in North-Western
Province.
Strategy for Poverty Reduction cont…
Promote efficient production and use of
woodfuel. Under this programme, charcoal
consumption will be reduced by 400,000 tones by the
year 2010.
Summary of expected outputs
Table 1: Summary of expected outputs:
Main
programme
Energy Policy
Review
Rural
Electrification
Urban
Electrification
Enhance
existing
Energy
Infrastructure
Current status
Target status
1994 policy inadequate
New policy by
end 2005
15% of rural
population with
access by 2010
2% of population with
access
48% of population with
access
(g)
Power
Rehabilitation
Project in
progress
(h)
Petroleum
Rehabilitation
Project on hold
70% of
population with
access by 2010
Enhanced
infrastructure
by 2010
Required major activities
(a)
(b)
Energy Policy Review
Rural Electrification
Master Plan/Strategy
(c)
Establishment of Rural
Electrification Authority
(d)
Implementation of
priority RE projects
(e)
Urban Electrification
Strategy
(f)
Implementation of
priority UE projects
 Securing funding and
implementation of priority
infrastructure projects
Summary of expected outputs
Create new
energy
infrastructure
Existing infrastructure
inadequate to meet
future demand
Implement new
infrastructure
projects by 2010
Woodfuel
management
and
substitution
programme
Woodfuel major source
of energy
Reduce charcoal
consumption by
400,000 tones by
2010
National
Petroleum
Strategic
Reserves
No strategic reserves
Have national
strategic
reserves by 2010
(a)
Zambia-Tanzania-Kenya
Interconnector
(b)
Zambia-DRC
Interconnector
(c)
Electrification of Farm
Blocks (Mkushi,
Nansanga, Kalumwange,
Luena, etc)
(d)
Kafue Gorge Lower and
Itezhi-tezhi Hydro
Electric Power Stations
(e)
Mini-hydro stations in
North-Western Province.
 Implement efficient charcoal
production and use activities
 Substitute charcoal with gelfuel
 Introduce LPG as domestic
fuel
 Introduce legislation on
strategic reserves
 Create Strategy reserves
Progress on Projects and
Programmes
Review of the National Energy Policy
The draft NEP document has been prepared. This followed
nationwide consultative meetings with stakeholders. The
consultative meetings were held in all the 9 provinces Of
Zambia. The draft document has been submitted to line
Ministries for comments
Establishment of Petroleum Strategic
Reserves
A Technical Committee on the Establishment of Petroleum
Strategic Reserves has submitted its proposals to cabinet.
Progress on Projects and
Programmes cont…
MEWD together with the MFNP, is working out modalities on
the leasing of GRZ depots so that they could be used in the
building of the strategic stock.
Establishment of the Rural Electrification
Authority (REA)
The REA secretariat has been set up. The Board of Directors
has been appointed and is working. Process of hiring a
consultant to offer technical assistance is nearing completion
(assistance from SIDA)
Negotiations for a financial package from the WB to be used
to increase the rate of electrification is in progress. Funds to
be managed by REA
Progress on Projects and
Programmes cont…
Rural Electrification Programme
A review and evaluation of Rural Electrification Projects was
done between January and March 2004. ZESCO has
continued implementing rural electrification projects notable
ones being Kasempa (completed), Kaoma and Nyimba.
Preparatory work on the Chavuma project has also
commenced. Electrification of farming blocks has started
with Nansanga receiving US$ 1.8 Million in December 2004
Rural Electrification Master Plan
A Consultant has prepare a project document. The
document will be sent to potential donors. Already JICA,
USAID and SIDA have expressed interest in supporting the
master plan. Application has been made to JICA and
outcome expected this month.
Progress on Projects and
Programmes cont…
Solar Energy Promotion
The Solar Energy Project in Eastern Province has
been evaluated and an evaluation report is being
prepared. Installation of 200 solar systems for
traditional rulers in progress
Improved Cook stove Promotion
A pilot project to promote the use of improved
cook stoves has been commenced by the
Department. A total of 800 cook stoves have
been purchased for distribution at a subsidy to the
community in the project areas.
Progress on Projects and
Programmes cont…
LPG Promotion
The programme involves distributing LPG stoves and gas to
targeted households at a subsidized price. So far 350 stoves
with gas have been bought. A survey to identify households
to benefit from the project will start 3rd week of April.
Gel-Fuel Promotion
The process to import gel fuel and stoves from Malawi is on.
An application for zero rating of gel-fuel has been submitted
to the Ministry of Finance and National Planning (MFNP).
The response from MFNP is being awaited.
Progress on Projects and
Programmes cont…
Energy Information Dissemination
The Informatics section has this year produced the NEP draft
document, draft Statistical Bulletin and Annual Reports for
the years 2000, 2001, 2002 and 2003.
Establishment of Global Village Energy
Partnership
A GVEP Working Group has been established and a mode of
operation has been developed. The DOE is the GVEP
secretariat.
Zambia has received funding from GVEP, through the World
Bank to facilitate the preparation of the action plan. ToRs for
consultant are ready and recruitment to start before the end of
the month.
Progress on Projects and
Programmes cont…
Zambia-Tanzania-Kenya Interconnector
SADC project, progress with grants approved from ADB and
the WB for studies.
Uganda and Rwanda have expressed interest to participate
Kafue Gorge Lower
ZESCO working with Chinese company to develop the
600MW hydro plant. Designs done and financing in progress
Itezhi Tezhi
ZESCO working with Iranian company to develop the 120
MW hydro site. Financing efforts in place, designs being
finalized.
conclusion
Within its national budget, the Government of the Republic of
Zambia has been allocating resources to implement energy
projects in order to reduce poverty. However, there is great
need for the international community to come along and partner
with the government in order to scale up the projects.
Most of the required frameworks and institutional infrastructure
are in place and what is required now is capacity building and
funding to develop the infrastructure to enable the rural poor
have access to modern energy services. Modern energy services
will help all of us to reduce poverty.
The End
Thank you very much
for your attention