Embedded Generation: A Private Sector Perspective

Transcription

1 Embedded Generation: A Private Sector Perspective LAGOS, NIGERIA 14 NOVEMBER 2012 CLARA MUSAMA SENIOR MANAGER, INVESTOR RELATIONS

2 Outline ozambian Energy Sector ocase Study of CEC 16 November

3 Zambian Energy Sector o 3 key players in the Zambian energy sector o Zesco : generation, transmission, distribution & supply o Lunsemfwa Hydro : generation o CEC : generation, transmission and distribution o Generation capacity is 1900MW, mostly from hydro sources o National demand stands at 1850MW, projected to rise to 2500MW by 2015 o Industry regulated by the Energy Regulation Board o The Zambian power system is interconnected with DRC, Namibia and Zimbabwe o Embedded generation in Zambia: o 30MW Bio mass by Zambia Sugar o 80MW Diesel generation & 1MW Bio-gas by CEC o Proposed 30MW coal fired by Dangote 16 November

4 Zambian Energy Sector Generation CEC LHPC Transmission ZESCO Distribution CEC Power Flow Financial Flow Supply. Mines Domestic Market Other Consumers Export Market 16 November

5 Zambian Energy Sector reform o The Zambian Electricity Industry was liberalised in 1995 to allow for private sector participation through energy sector reforms o The sector is partially unbundled and private sector players exist in all the sectors of the electricity supply industry from generation, transmission to distribution o The progress in setting up new private sector owned generation station in general has been slow due to low tariff levels o Need to move tariffs to cost reflectivity in has been recognised o Growth in the economy at 6% GDP driving the increase in power demand 16 November

6 About CEC o Formed in 1997 from privatisation of ZCCM o Business: Electricity Utility operating on the Copperbelt Province of Zambia o Supply of power to mines [550MW, growth expected] o Power Transmission for ZESCO [270MW] and SNEL (DRC) [ MW] o Telecommunications development through joint ventures o Infrastructure o 884km of 220kV and 66kV transmission lines o 80MW of embedded gas generation o 38 major substations o 540km of optic fibre on power lines o Business development o 40MW power plant in North West part of Zambia o 800MW Luapula Hydro power scheme o Proposed acquisition of Abuja DisCo o Renewable energy development 16 November

7 Ownership Structure Zambian Investors & Development Banks Employee Share Scheme Listed Shares LuSE ZCCM I-H Zambian Energy Corporation 52% 28% 4,000 Shareholders Copperbelt Energy Corporation 20% CEC was listed on the Lusaka Stock Exchange in Jan November

8 CEC s embedded generation o CEC has a total of 80MW embedded generation o These are from gas fired generators strategically located close to load centres o Connected at 11kV and feeds into grid o Future embedded generation projects include: o 40MW hydro power project, construction to commence in 2013 o 10MW Solar project for construction power during development of Kabompo Hydro Project o 1MW Bio gassification project o Renewable project being explored 16 November

9 CEC s embedded generation o Direct sale to the mining industry through long term PPAs o Some power sold to residential customers through Zesco o Standard form of PPAs developed, adapted for specific projects 16 November

10 Alternative Uses for Embedded Generation o In addition to base load, embedded generation is used for; o Emergency supply (in case of loss of grid supply.i.e. islanded mode) o Peak shaving (Maximum Demand management) o Voltage control o Reactive Power Support o Active Power Support for Grid Supply 16 November

11 Key operational Requirements o No restrictions on self generation o Generation licence o For 1MW and above o Technical standards & compliance laws o Grid code o Wheeling agreements o Tariff reviewed by the ERB 16 November

12 Benefits to CEC for embedded Generation o Reduced transmission losses o Not impacted by delayed investment in transmission grid o Increased access to cost effective sources of power o Improvement in quality of supply o Environmental benefit (associated with increasingly Renewables) 16 November

13 Conclusion o CEC has successfully operated its embedded generation assets for 50 years o Liberalisation of power sector key in promoting private sector participation in embedded generation projects o Cost reflective consumer tariffs which do not compete with under priced power o Clear code of practice for grid connection important 16 November

14 THANK YOU 16 November