Energy Efficiency and Demand Side Management in Zambia

This objective is part of a broader effort to improve the efficiency of Zambia's energy sector, which faces a potential supply gap from 2017 to 2022. The Ministry has partnered with the European Union to formulate a roadmap to achieve these objectives. The main areas of impact for energy efficiency and demand-side management in Zambia appear to be in the mining and domestic sectors, which account for 85.7% of power consumption in the country. Within the mining sector, energy efficiency could provide improvements in power consumption ranging from 3 to 5% and up to 15% along the value chain. However, the Chamber of Mines has not taken part in the EU's energy efficiency roadmap discussions. The European Union and the Ministry of Energy are in the process of finalizing the energy efficiency roadmap, with a draft expected for public release in January 2018. The roadmap includes the "Energy Efficiency Quick Wins" report, which is a country-wide initiative formulated by 80 policy makers and covers 14 EE audits of reference industries and businesses. The roadmap does not cover the mining sector other than through one measure, the Power Factor surcharge. Experiences from other countries suggest that the adjustments needed for an effective energy efficiency and demand-side management program are prioritized along four areas: reducing energy subsidies, providing incentives for utilities and their customers to improve energy efficiency, implementing and enforcing energy efficiency standards, and encouraging public-private partnerships. Zambia's roadmap covers some of these elements, but it does not seem comprehensive enough. A detailed review of the energy efficiency roadmap is needed once it becomes publicly available, followed by a discussion with the Chamber of Mines to quantify the potential benefits from energy efficiency and demand-side management in the mining sector. This will enable the design of an appropriate set of interventions in the sector. The Zambian Ministry of Energy has set a goal to reduce energy usage by 2% per year from 2018 until 2030, which is part of a broader effort to improve the efficiency of Zambia's energy sector. The Ministry has partnered with the European Union to formulate a roadmap to achieve these objectives. The main areas of impact for energy efficiency and demand-side management in Zambia appear to be in the mining and domestic sectors, which account for 85.7% of power consumption in the country.