leadership and governance: drivers to a first world zambia'. sustainability of energy... ·...

30
"Leadership and Governance: Drivers to a first world Zambia" "Sustainability of energy infrastructure in Zambia“ Keynote Address Dr Lemba Davy Nyirenda FEIZ FCSZ MIEEE (USA) MINFORMS (USA) High Court of Zambia Arbitrator & Mediation Ambassador Managing Director: Electric Earthing Protection Systems Ltd ( a WorkPlace University ThinkTank)

Upload: lenhan

Post on 22-Mar-2018

214 views

Category:

Documents


1 download

TRANSCRIPT

"Leadership and Governance: Drivers to a first world Zambia"

"Sustainability of energy infrastructure in Zambia“ Keynote Address

Dr Lemba Davy Nyirenda FEIZ FCSZ MIEEE (USA) MINFORMS (USA) High Court of Zambia Arbitrator & Mediation

Ambassador

Managing Director: Electric Earthing Protection Systems Ltd ( a WorkPlace University ThinkTank)

Outline Zambia’s Energy Sector Infrastructure Sustainability Metrics

1. Energy Sector Importance : Low (No Constitutional National Offices)

2. Energy Institutions Governance

3. Energy Infrastructure Segmentation

4. Infrastructure Diminishing Economic Life:

5. Energy Infrastructure Growth & Sustainability Barriers

6. Infrastructure Sustainability: Leadership Essentials Violations

7. Energy Infrastructure-Growth : Technology Essentials Violations

8. Energy Business-Conduct : Integrity Essentials Violations

9. Energy Systems-Actions : Uprightness Essentials Violations

ENERGY DATA SOURCES: International Energy Agency; World

Development Indicators database; CIA World Factbooks 18

December 2003 to 28 March 2011; Source: Energy Statistics

Database | United Nations Statistics Division. Population figures

from World Bank: (1) United Nations Population Division. World

Population Prospects, (2) United Nations Statistical Division.

Population and Vital Statistics Report (various years), (3) Census

reports and other statistical publications from national statistical

offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the

Pacific Community: Statistics and Demography Programme, and

(6) U.S. Census Bureau: International Database.; IEA; German

Agency for International Cooperation (GIZ); CIA World Factbooks

2010, 2011, 2012, 2013.

1. Energy Sector Importance:

No Constitutional National Offices

• Money Sector (Wealth Counting): Minister of Finance, BOZ Governor, Auditor General, Accountant General

• Justice Sector (Wealth Safeguarding): Minister of Justice , Attorney General, Solicitor General, Director of Public Prosecutions

• Energy Sector (Wealth Creating) : Minister of Energy, Engineering General (none), Technology General (none), Auditor of Public Projects (none)

2. Energy Institutions Governance :

MOE, Zesco Ltd member IDC, REA,OPPI, ERB,CEC • Affectiveness: Low [Change of Government Change of Management &

High Ranking Professionals & Alleged Opposition sympathisizers] • Effectiveness: Low [First Republic Energy Infrastructure Overstretched

due to Scrapping of NCDP (National Commission for National Development Planning) responsible for Long-range Planning of Long Lead Time Conventional Energy Power Stations & Extra High Voltage Transmission Lines & Substations]. KGLower (1976-2016 delay)

• Efficiency: Low [KPIs not being met, Growing Power Deficit and Increasing Lost Power & Technical Losses, Enforcement of Demand Side Power Factor Correction not Mandatory for Large Power Users, Energy Efficiency Earning Programs not Standard Procedure, Power Quality & Premises Wiring Standards no Mandatory Enforcement, No cost reflective tariffs, No Renewable Energy Feed-in-Tariffs Effected, No Lifeline Tariff for Economically under privileged

3.Energy Infrastructure Components & Performance Indicators

• Forest Energy Sources (FES) : Grass, Leaves, Wood, Charcoal

• Petroleum Energy Sources (PES): Kerosine-Fuel, Petrol-Fuel, Diesel-Fuel , Jet-fuel , LPG-Fuel, Heavy-Oil Fuel

• Conventional Energy Sources ( CES) : Large Nuclear, Large Coal , Large Hydro, Large Diesel, Large Gas for Electricity Generation-Transmission-Distribution-Supply(sales)

• Renewable Energy Sources (RES) : Solar water heaters (ground /roof), Solar-PV (ground/roof) and Solar-CSP (ground) for Electricity; Wind-farm for Electricity;

Micro & Mini Hydro for Electricity; Bio-mass and Bio-oil. and Bio-gas

• Emerging Energy Sources (EES) : Emergency Large Battery Banks, Fuel-Cell Banks, Small Boiling.Pressue Water Nuclear Reactors for Electricity & Nuclear Medicine

Total Electricity Net Generation - Ranks (Billion Kilowatthours)

The amount of gross generation less the electrical

energy consumed at the generating station(s) for

station service or auxiliaries. Electricity required for

pumping at pumped-storage plants is regarded as

electricity for station service and is deducted from

gross generation.

2012 2011 2010 2009 2008 2005 2000

Zambia 12.00 11.00 11.00 10.00 9.60 8.80 7.70

Laos 12.00 12.00 8.10 3.70 4.00 3.40 3.60

Estonia 11.00 12.00 12.00 8.30 10.00 9.60 8.00

Sri Lanka 11.00 11.00 10.00 9.60 9.60 8.90 6.50

Costa Rica 10.00 9.70 9.50 9.20 9.40 8.20 6.80

Uruguay 10.00 10.00 11.00 8.60 8.50 7.60 7.50

Croatia 10.00 10.00 14.00 12.00 12.00 12.00 10.00

Burma (Myanmar)

10.00 9.70 7.30 6.80 6.40 5.80 4.90

Sudan and South Sudan

9.70 8.80 7.90 6.80 5.80 4.20 3.00

The National Grid Generation & Transmission Expansion is Guided by 2030

Power System Master Plan .

ZESCO’s electricity generation is 99 percent hydro, and 1 percent thermal

from diesel powered generators located in most districts of North Western

Province. The total installed capacity stands at 2,337 Mega Watts (MW)

Electric power consumption > KWh 8.17 billion 2011 96th / 135

Electric power consumption > KWh per

capita 598.95 2011 111th/135

Electrical outages > Days 30 days 2002 6th / 30

Electricity > Consumption 7.96 billion kWh 2010 63th / 166

Electricity > Consumption > Per capita 770.03 kWh per capita 2007 94th /155

Electricity > Consumption by households

per capita 134.52 kWh 2005 131st /174

Electricity > Production 11.19 billion kWh 2010 61st /161

Electricity production > KWh 11.45 billion 2011 89th /137

Electricity production from renewable

sources > KWh 11.41 billion 2011 47th /137

The Rural Electrification Authority (REA) was established by an Act of Parliament No. 20 of 2003. Its primary aim is to provide electricity infrastructure to the whole nation targeting rural communities as mandated by Government. The Rural Electrification Master Plan (REMP) which is the blue print for executing this program has been development.

Euro bond Financed Projects.

The government of the Republic of Zambia (GRZ) has allocated USD69 million from the

USD750 million Euorbond proceeds towards the rehabilitation and expansion of the

distribution network infrastructure. The scope of works under this component includes the

construction of new substations, upgrading of existing substation, replacement of obsolete

switch gear and upgrading of the high tension underground cables in major towns.

The country has abundant sunshine which gives the country great potential to

develop this renewable resource and provide affordable energy to rural

communities.

Wind-Energy & Solar Energy Farm

Indeni Petroleum Refinery Limited

The name INDENI was made by joining the names INDECO and ENI Group of

Companies of Italy.

Located in Ndola, on the Copperbelt province of Zambia, the refinery began operations in June

1973. It is supplied by a 1700Km Crude Oil Pipeline from Dar-es-salaam, Tanzania. INDENI has

a design capacity of 1,100,000 MT per year at 77.5 % Crude Oil and 22.5 % others.

Submitted by idc.devops on Wed, 09/16/2015 - 14:53

Zambia Refinery Capacities 1970-2012 International Energy Statistics, February 2015

Zambia

Crude Oil Distillation Capacity (Thousand Barrels Per Cal Day)

Catalytic Cracking Capacity (Thousand Barrels Per Cal Day)

Thermal Cracking Capacity (Thousand Barrels Per Cal Day)

Reforming Capacity (Thousand Barrels

Per Cal Day)

Units Thousand Barrels Per Cal Day

Thousand Barrels Per Cal Day

Thousand Barrels Per Cal Day

Thousand Barrels Per Cal Day

2001 23.75 0.00 0.00 5.32

2002 23.75 0.00 0.00 5.32

2003 23.75 0.00 0.00 5.32

2004 23.75 0.00 0.00 5.32

2005 23.75 0.00 0.00 5.32

2006 23.75 0.00 0.00 5.32

2007 23.75 0.00 0.00 5.32

2008 23.75 0.00 0.00 5.32

2009 23.75 0.00 0.00 5.32

Zambia Total Petroleum Consumption 1980-2013 Zambia Total

Petroleum Consumption (Quadrillion

Btu)

Total Petroleum

Consumption (Thousand Barrels Per

Day)

Consumption of Motor Gasoline

(Thousand Barrels Per

Day)

Consumption of Jet Fuel (Thousand Barrels Per

Day)

Consumption of Kerosene (Thousand Barrels Per

Day)

Consumption of Distillate

Fuel Oil (Thousand Barrels Per

Day)

Consumption Residual Fuel

Oil (Thousand Barrels Per

Day)

Units Quadrillion Btu

Thousand Barrels Per Day

Thousand Barrels Per Day

Thousand Barrels Per Day

Thousand Barrels Per Day

Thousand Barrels Per Day

Thousand Barrels Per Day

2007 0.0 14.8 4.3 1.2 0.3 6.4 1.4

2008 0.0 11.9 3.0 0.8 0.4 5.2 1.2

2009 0.0 13.0 3.2 0.9 0.5 5.5 1.4

2010 0.0 13.3 3.7 0.7 0.4 5.9 1.0

2011 0.0 17.0

2012 0.0 20.2

2013 0.0 21.3

International Energy Statistics, February 2015 Zambia

Total Coal Consumption (Quadrillion Btu)

Total Coal Consumption (Thousand Short Tons)

Units Quadrillion Btu Thousand Short Tons

1998 0.005 226.834

1999 0.003 137.696

2000 0.003 141.096

2001 0.003 146.607

2002 0.003 151.017

2003 0.004 159.835

2004 0.003 119.050

2005 0.003 154.324

2006 0.001 63.934

Zambia Total Coal Consumption (Quadrillion Btu)

Total Coal Consumption (Thousand Short Tons)

Units Quadrillion Btu Thousand Short Tons

2007 0.000 15.432

2008 0.000 1.102

2009 0.000 1.102

2010 0.000 0.000

2011 0.000 0.000

2012 0.000 0.000

4.Infrastructure Diminishing Economic Life & High Cost of Aging Infrastructure Replacement

• Over-switching, • Previous Wrong operating modes of Generation Plant to Support

Regional Power Banking arrangements • Frequent Emergency Over-loading , • over-operating with delayed maintenance , • Lifelines infrastructure Projects: Multiyear Carryover Incompleteness &

No Best Practice Benchmarking, Projects Implementation Gap (Yellow &Blue Books Zero Disbursements)

• No Real-Time Wide-Area Protection & Control Capability including Critical Power System Components UPEDR ( Universal Productivity Emergency Disaster Recovery ) meter

• High Cost of Commercial Finance for Zesco Ltd Company versus GRZ

5. Energy Infrastructure Growth & Sustainability Barriers

• Lack of GRZ Coordination of Competing Energy Development Opportunities • AfDB High 5s 10year New Deal Energy For Africa • South (China)-South (Zambia) Off-Grid Renewable Energy Capability Transfer MiniHydro &

Solar Projects • IEEE Smart Village Lighting Solar Projects • IDC-Zesco On-Grid MW-Scale Renewable Energy Solar Projects • REA’s REMP RENEWABLE ENERGY Solar PROJECTS • Department of Energy Renewable Energy MW-Scale Solar ProJects • Ministry of Health Renewable Energy Solar Projects

• No Comprehensive Energy Sector Long-term Power Chase Agreements, Legislation & Institutional Reforms Accommodating Largescale Off-Grid Rural & On-Grid Urban Renewables

• No GRZ Sponsored and Entrepreneur-TAX-Sweetening RES PROSUMER Programs

6. Infrastructure Sustainability: Leadership Essentials Violations

• Humanity (Love of People), Clarity (Promised Land Vision and Mission and Values), Courage (Fight opposition within and Without)

[ZEN Rules Lesson 13]

• All three present: Community Thrives

• Any One not-present: Community Deteriorates

(Low Integrity of Conduct or Low Uprightness in Actions)

Any Two not-Present : Community in Peril

(Very-Low Integrity of Conduct and Very-Low Uprightness in Actions)

• All Three not-Present : Way of Leadership in Ruins

(No Integrity of Conduct and No Uprightness in Actions)

7. Energy Infrastructure-Growth : Technology Essentials Violations

• Make, Create, Innovate : RD&D (DResearch & Development Demonstration & Deployment)

• Impacting positively the majority of the population by improving the multiplicity of livelihood opportunities and economic prosperity

• Simplicity of design for maintainability and ease of repair and replacement

• Fit-for-purpose applicability and energy efficiency earnings

• Exploiting as many as possible power & energy efficient open-domain patented technologies in all governance, social, economic growth centres and economic zones

8. Energy Business-Conduct : Integrity Essentials Violations

• Being Trust Worthy : Low ( No monitoring & No Standards Reward System)

• Not-Corrupt : Low ( No monitoring & No Standards Reward System)

• Not-Negligent : Low ( No monitoring & No Standards Reward System)

9. Energy Systems-Actions :

Uprightness Essentials Violations

• All Actions Goodness : Low ( No monitoring & No Standards Reward System)

• All Actions Righteousness : Low ( No monitoring & No Standards Reward System)

• All Actions Truth : Low ( No monitoring & No Standards Reward System)

CONCLUSION

1. Currently Zambia does not have the “Rural Prosperity-Action-Thinking Plans for New-City-Villages ”, Governance and Leadership Climate to transform :

a) The Existing Electricity Generation & Rural Access Constrained Energy Infrastructure to Green First World Sustainable State;

b) The existing half refinery without the crude cracking capability to Green First World Sustainable State

c) The existing lack of coordination between the 2030 REA-REMP and 2030 MOE-PSMP and the 2030 RDA-Roads Network Master Plan to the 2030 First World Integrated Lifelines Infrastructure Master Plan

2. Economics, Accounting, Management and Engineering Professional Codes of Ethics should be harmonizes and be recognized by the Constitutional Court in Cases of Politically Motivated Removals.

3. The Energy Sector Needs Constitutional National Offices like the Money and Justice Professions for Zambia to have Long-Term First World Energy ( Petroleum, Electricity, Coal) Energy Sustainability.

The End. Thank You