MICRO-GRIDS FOR RURAL ELECTRIFICATION Case Study from Zambia on the Zengamina Micro-Hydro Power Grid Presentation by Energy Regulation Board, Zambia 79 th IEC General Assembly Workshop for Industrialising Countries in Belarus, Minsk 14 th October 2015
Presentation Outline 1. Brief about Zambia 2. Power Sector Reforms in Zambia 3. Regulatory Initiatives for Off-grid systems 4. Zengamina Micro-Grid Project Overview Key Project Characteristics Generator and Distribution Network Characteristics Demand Situation Environmental Impact Key Project Success Factors Benefits of the Installation Challenges 5. Conclusion 2
Located in South Central Africa Population: 14 million Land Area: 750,000 km 2 Electricity Access: 18% Urban: 47% Rural: 3.3% Brief About Zambia Major Exports: Copper, Maize (corn), Cobalt, Tobacco, Cotton, Flowers, Electricity Gross Domestic Product (2014): US$ 27.1 billion Administrative Regions: Ten (10) Governance System: Parliamentary democracy 3
Power Sector Reforms in Zambia (1) In 1991, the Zambian Government embarked on liberalisation and creation of a market economy In 1994, the first National Energy Policy (NEP) was promulgated. The NEP set out a number of policy measures which included: Restructuring of the electricity industry; Improving access to electricity; Promoting electrification of productive areas and social institutions; and Cost effective development of hydro power generating potential. Main strategy was to open up the power industry to the private sector Initiated the restructuring of the electricity market through legislative reforms that allowed other players in the market. The NEP also set the institutional framework under which these policy measures would be implemented. Sector regulator established -The Energy Regulation Board (ERB). One of the recommended functions of the ERB in the NEP is to regulate against monopolistic tendencies of energy undertakings 4
Power Sector Reforms in Zambia (2) Electricity Supply Industry Structure Before Reforms After Reforms 5
Power Sector Reforms in Zambia (3) Zambian Electricity Supply Industry Players 1. ZESCO Ltd Generation (2,021 MW), Transmission, Distribution and Supply 2. Copperbelt Energy Corporation Transmission, Distribution and Supply 3. Lunsemfwa Hydropower Company Generation (52.5 MW), Distribution and Supply 4. North-Western Energy Corporation Distribution and Supply 5. Zengamina Power Limited Generation (0.75 MW), Distribution and Supply 6
Power Sector Reforms in Zambia (4) Overview of the Power Sector in Zambia Copperbelt Energy Corporation ZESCO generation Kariba North Bank 900MW Victoria Falls 108MW Kafue Gorge 990MW Lusiwasi Chishimba Falls Musonda Falls 23MW ZESCO small hydro power stations Lunsemfwa Hydro Power Company Mulungushi Lunsemfwa 52.5MW CEC standby generation 80MW ZESCO TRANSMISSION CEC Sub Transmission MINES Zengamina 0.75MW SAPP IMPORTS/ EXPORTS Ndola Energy Company Limited DRC IMPORTS ZESCO DISTRIBUTION Ndola Energy 50 MW 7
Regulatory Initiatives for Off-grid systems 1. ERB has adopted Light Handed Regulation for Off Grid networks 2. 2010 Developed Off Grid Regulatory Framework Combined Licence for Generation, Distribution and Supply Relaxed Reporting Requirements for Quality of Supply and Service Voltage Regulation (Based on Number of Verified VR Complaints in a year) Interruptions (Licensee only report statistics relating to forced interruptions on a network basis) Quality of Service ( KPIs on critical elements of Quality Of Service Standards) Relaxed Tariff Methodology Connection Charge, Fixed monthly charge and a variable kwh charge Currently two licensed entities under the off-grid regulatory framework 0.75 MW Zengamina Power Limited (Hydro micro-grid) 60 kw Mpanta solar micro grid 8
The Zengamina Micro Grid (1) Project Overview Zengamina Hydro Project An off-grid micro hydro plant based in Ikelenge district of North-Western Province with installed capacity of 700kW. Run of River Design Project was developed to supply power to Kalene mission hospital and the surrounding farms, businesses and residential areas. It consists of a hydro power station and a distribution network system. It is privately owned: 99% by the North West Zambia Development Trust (NWZDT) Nominal 1% by the CEO (Authorised Signatory) Commissioned on 14th July 2007 The total project cost was US$3 million 9
The Zengamina Micro Grid (2) Key Project Characteristics 10
The Zengamina Micro Grid (3) Key Project Characteristics Resource Zambezi River (17m drop) 700 kw Installed Capacity (Potential to go to 1.4 MW) Installation Weir (1.5m height) Canal (1.2m deep x 7.5m wide, 350m long) Penstock (1.9m diameter x 75m long) Tailrace (10.5m wide) Electro-mechanical Cross-flow turbine 1 MVA, 400V/33 kv Step-up transformer 36 km of 33 kv line 35 km of 400 V lines Financials Project Cost: US$ 3 million $2million on hydro civil/ mechanical $1 million on the distribution network Current tariff at US$ c 6.4/kWh ZPL prefer the tariff to be around US$ c 10 12/ kwh for the project to be successful There is Government commitment to raise tariffs in the country to around US$c 10.3/kWh to achieve cost reflectivity and this should help ZPL In the East African region, for such a project the rates average US$c 24/kWh 11
The Zengamina Micro Grid (3) Generator and Distribution Network Characteristics Generator parameters Permanently attached to the turbine through a gearbox Machine is self exciting using permanent magnets AVR maintains voltage at set value as load changes Current output of 1350A - 750kW at 0.8 p.f Generator Protection Reverse Power Distribution Network 35km of distribution network at 33kV 36km of distribution network at 400V 230V for residential customers 400V for farms, hospitals and industrial customers Under frequency Under/ Overvoltage Negative Phase Sequence Current Overcurrent 12
The Zengamina Micro Grid (4) 13
The Zengamina Micro Grid (5) Demand Situation Present Demand 420 kw 5 Year Forecast 620 kw Maximum output 8 years (2016) Base Load Hospital, Mission & Boarding School Commercial Farm (Irrigation) Residential customers (Ikelenge town) Cell phone towers Crusher and block making machine Electrification 456 residential customers signed-up 5 schools 2 clinics Additional Capacity Potential for day storage upstream Second turbine at 8 year milestone 14
The Zengamina Micro Grid (6) Environmental Impact Run of a river design Low take-off weir (little impact on the Zambezi river) Facilities concealed from public view Facilities blended into local physical environment by use of natural granite masonry 15
The Zengamina Micro Grid (7) Key Project Success Factors Prime driver for the Zengamina project was to provide power to Kalene Mission Hospital The Zengamina project to benefit the whole of the community in Ikelenge and Nyakaseya Project construction involved mainly local workforce Mainly local materials were used for the civil construction works Installation of main equipment done by volunteer electrical engineers from UK & Australia Copperbelt Energy Corporation (CEC) team carried out commissioning tests on voluntary basis Project was funded by donations from Christians and charity trusts in the UK 16
The Zengamina Micro Grid (8) Benefits of the Installation - 1 Removal of diesel generated power with its high operational costs 24 hour power supply to the following establishments which were using diesel power Kalene mission hospital Ikelenge mission Flight service Sakeji school Hillwood farm Power to the new Nursing training school Employment provision for local Zambians 17
The Zengamina Micro Grid (9) Benefits of the Installation - 2 Economic development in the district including: Crusher and black making machine Hammer Mills Welding shops One pineapple dehydration factory Proposed pineapple canning and pulping factory New district hospital New district post office New police post Secondary boarding school New district council and Government offices 18
Challenges High power line maintenance costs due to extreme termite activity; High incidence of lightning (granite basement geology); Low tariffs which are not cost reflective; Relatively few customers and limited scope for increasing tariffs due to low income levels for the rural customers; High construction costs due to remote location and poor road infrastructure; Limited/ No capital to extend the distribution network to all potential customers; Inability to attract qualified manpower due lack of funds to pay good salaries and remoteness of the area; and, Policy considerations on how off grid systems can be integrated into the main grid when the main grid is extended to areas serviced by off grid systems. PPA difficulties for future connection to the ZESCO (national utility) national grid 19
Conclusion Successfully connected over 521 customers including Kalene hospital and schools, which benefits the entire district of over 20,000 people The impact of the electricity Schools get power New operating theatre People get light in their homes Shops and businesses can use machinery Project operated as a marginal business due to low tariff structures but it was initiated to promote development in the district by the local stakeholders The project continues in its 8 th year with minor subsidy from NWZDT and breakeven should be achieved when tariffs are raised to regional/ cost reflective levels Wonderful example of rural electrification in Africa not just Zambia 20
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