BUSINESS FOCUS WITH BALEWA ZYUULU
ANY country experiencing rapid economic growth and urbanization, requires a sustainable and reliable energy supply. Achieving energy efficiency and sufficiency is essential not only for economic development but also for environmental sustainability. The Business Focus will explore the most practical approaches Zambia can adopt to secure its energy sufficiency.
It is important to state from the onset that the Zambian government has prioritized the development and enforcement of robust energy policies and standards and by adopting international best practices and customizing them to local needs, Zambia can significantly improve its energy efficiency.
The government announced a number of Financial incentives such as tax breaks, rebates, and low-interest loans should be provided to businesses and households investing in energy-efficient technologies.
Since Zambia is blessed with abundant renewable energy resources, expanding solar energy projects, both large-scale and decentralized, is a key step towards achieving energy sufficiency. Given the country’s vast sunlight, solar energy presents a viable solution for rural electrification and reducing dependency on traditional energy sources.
Optimizing existing hydropower infrastructure and exploring small-scale hydropower projects can also contribute to a more reliable energy supply. Both North-Western and northern circuit has plenty of potential for the establishment of mining hydro power stations.
Additionally, promoting the use of biomass and biogas in rural communities can help reduce reliance on firewood and charcoal, mitigating deforestation and improving energy security.
At the centre of every policy is the public. For any policy to be successfully implemented, Public awareness campaigns are crucial in promoting energy efficiency. Educating the public on the benefits of energy efficiency and providing practical tips can lead to significant energy savings.
Simple things such as labelling schemes for energy-efficient appliances and encouraging the adoption of LED lighting can further enhance household and business energy efficiency.
In the advent of advancements in technology it is also essential to embrace the role of technology to achieve energy efficiency. Investing in smart grid technology will enhance the efficiency and reliability of electricity distribution. Upgrading existing power plants to improve their efficiency and reduce energy losses is equally important. In the transportation sector, promoting fuel-efficient vehicles and exploring the potential for electric vehicles, including the necessary charging infrastructure, can lead to substantial energy savings.
Experts believe that encouraging industries to adopt energy management systems and implement best practices for energy efficiency is vital. The promotion of cogeneration (combined heat and power) and waste heat recovery systems can significantly enhance industrial energy efficiency, reducing operational costs and environmental impact.
Issuing green bonds to finance energy efficiency and renewable energy projects can attract investment and accelerate progress. Encouraging public-private partnerships (PPPs) will leverage private investment in energy efficiency projects, spreading the financial burden and risk.
By implementing these comprehensive strategies, Zambia can enhance its energy efficiency and achieve sufficiency, ensuring a sustainable and reliable energy future.
The path to energy efficiency and sufficiency is multifaceted, requiring concerted efforts from the government, private sector, and civil society.
As Zambia embraces these changes, it will not only secure its energy future but also set an example for other nations striving for sustainability. This is because solving the energy crisis requires collaborations with other players on the continent.
Energy Poverty somewhere is energy poverty everywhere. In the words of President Hakainde Hichilema, ‘Instability anywhere is instability everywhere. ‘Whether it is political instability energy, instability affects everyone. Therefore, solving the Energy Crisis in Zambia and indeed Africa needs a Comprehensive Approach.
This is because energy access remains a critical issue in Africa, where over 600 million people lack access to electricity, a figure that has stagnated for over a decade. This lack of energy access severely limits economic growth and social development across the continent. To address the energy crisis in Africa and ensure energy access for everyone, several key steps must be taken. These steps, while straightforward, require strong will, vision, and most importantly, effective execution from both governments and the private sector.
According to the International Energy Agency, sub-Saharan Africa has the lowest rate of access to electricity in the world, with only 40% of the population having reliable access. This significant barrier hampers economic growth and development, as energy access is essential for economic activities and social progress. Without energy, basic needs such as lighting, cooking, and powering small businesses remain unmet. Furthermore, the lack of energy access restricts educational opportunities and healthcare services.
Deregulation of the energy sector
Deregulation is a crucial first step in addressing Africa’s energy crisis as the case is in Zambia where the private sector players are now fully involved. The telecom industry’s exponential growth following deregulation serves as a model. By deregulating the energy sector, private companies can enter the market, increasing competition, lowering prices, and enhancing energy access. A deregulated market would attract more investment, fostering the development of new and innovative energy solutions.
The private sector needs to shift towards a utility business model that leases hardware and charges a monthly utility fee, rather than selling the hardware outright. Governments should withdraw from direct involvement in the energy business, allowing private companies to focus on providing energy access to underserved areas. This approach would offer a stable income source for private companies, enabling them to reinvest in expanding their energy services. Notably, most government-owned energy companies in Africa are financially unviable, further emphasizing the need for private sector involvement.
Focusing solely on solar and battery solutions is insufficient. By combining various energy sources, such as wind, and incorporating mechanical storage solutions like compressed air storage and flywheels, costs and risks can be minimized. This diversified approach reduces dependence on a single technology and creates a more resilient energy system. Considering geographical contexts, where some areas are more suitable for wind and others for solar, is vital for providing a reliable energy supply.
Streamlining licensing for mini-grids
For rural areas, simplifying the licensing process for mini-grids is essential. Eliminating bureaucratic bottlenecks and ensuring a transparent, expedited licensing process will allow small companies to enter the market. This is particularly important for regions where grid-based solutions are not feasible or cost-effective.
Transitioning from a metering system to a flat fee system for low-income households can make energy more affordable and reduce the financial burden. Decentralized solutions make this approach feasible, providing a scalable and sustainable model.
New buildings should be required to include solar systems and water collection systems to reduce reliance on centralized grids. While maintaining the existing grid, decentralizing it by developing efficient, distributed systems can alleviate pressure and enhance grid security.
Innovation funds should be established exclusively for local innovators to develop new technologies tailored to Africa’s needs. Protecting the African market from foreign IP dependency can reduce currency outflows and support local industries.
Ensuring more local enterprises have access to investment in the energy sector is crucial. Currently, the majority of funds go to a small percentage of international companies. By democratizing access to investment, a more diverse and sustainable energy sector can flourish in Africa.
Addressing the energy crisis in Africa requires a comprehensive approach that tackles the economic, social, and political challenges of energy access. By implementing the steps outlined above, Africa can work towards providing 100% energy access to all its people and businesses.
The Author is an Economist and a multiple international award winning journalist.