Zimbabwe energy efficiency puzzle

ZIMBABWE has significant potential to make substantial savings of as much as US$700 million a year through the implementation of energy efficiency measures, which could free energy resources to other productive sectors of the economy.

Power and energy expert, Edward Chikuni, who spoke at the Zimbabwe Energy Regulatory Authority (ZERA) energy efficiency audit results presentation in the capital recently, noted that a lot of savings could be made if the country's residential, industrial and commercial sectors become more energy efficient.

Chikuni, who presented the audit findings, is a director of a consulting firm, Sustainable Africa Energy Consortium, which was engaged by ZERA last year in February, to conduct a national efficiency audit for Zimbabwe.

This was after the realisation that there were high energy losses in all sectors of the economy.

The study cut across mining, manufacturing, transport, agriculture and housing among other sectors.

The audit was meant to assist government to formulate the country's energy efficiency strategy.

Increasing energy management systems strengthens the country's energy security, complements renewable energy strategies and promotes sustainable development.

The purpose of the national energy efficiency audit was to determine the country's energy efficiency baseline and to quantify potential energy savings in all sectors of the economy.

"Energy constraints have led to some large companies stopping production but Zimbabwe can save about 380 megawatts (MW) of electricity which translates to as much as US$700 million annually, if energy efficiency measures are implemented," said Chikuni.

ZERA chief executive officer, Gloria Magombo, weighed in saying households were the highest consumers of energy at 35 percent, followed by manufacturing (25 percent), mining (14 percent), commercial consumers (20 percent) and agriculture (six percent).

Magombo said while energy efficiency was a low hanging fruit but it was not for free, adding that Zimbabwe has no option in the short-term other than to embark on energy efficiency measures.

"The 380MW to be saved can help us to guard against more load-shedding, which is almost equal to load-shedding we do on a daily basis," said Magombo, adding: "We believe it's something which is key. Energy consumers really need to work on their energy consumptions.

"Yes, it's possible to save about US$700 million but we have to put money into it. Energy efficiency measures can save about US$200 per kilowatt, so it means that if it's industry, they have to change the motors, for agriculture, they have to right size.

"A lot of them are running big machines but with little production. Those are consuming a lot of energy.

"So you find that the major problem which is there is the cultural issue. There is no culture of saving energy. The cost of energy supply is so high and really, we can't continue as if power is just for free."

Benson Munyaradzi, a director responsible for policy and planning in the Ministry of Energy and Power Development, told the Financial Gazette that government was committed to promoting energy efficiency in all sectors of the economy as indicated in the National Energy Policy of 2012.

"This study is critical in the evaluation of potential savings, which will be an input in the development of energy efficiency policy and subsequent energy management regulations," said Munyaradzi.

"Energy efficiency and conservation measures have proved to be cost effective and have the potential of creating a virtual power supply capacity in Zimbabwe. The virtual capacity could be obtained at a much lower capital investment cost of US$200 per kilowatt as compared to new projects which cost between US$2 000 and US$3 000 per kilowatt," said Munyaradzi.

"Furthermore, the gestation period of new build projects is typically three to four years and this makes it imperative for the country to deploy other interventions like energy efficiency and demand side, which have a shorter implementation period.

"Energy efficiency also contributes to a reduction in greenhouse gas emissions that cause environmental hazards such as acid rain and global warming through deferred construction of coal fired thermal power stations," he added

The audit recommended among other things, that people switch to alternative water heating and food preparation alternatives such as heat pumps and gas and also switch to LED lighting. Users were also urged to purchase energy efficient appliances and to install geyser timers and to consider solar PV to augment energy requirements.

Zimbabwe is experiencing power shortages due to a rise in electricity demand in the face of limited local generation capacity and imports.

The country is currently generating about 1 000MW of power against a national demand of about 2 200MW of electricity at peak periods. Many companies use generators every time power goes out. The cost of running a generator erodes most of the businesses' margins.

The country's industrial sector is reeling under massive costs associated with excessive load-shedding and use of generators to keep plants operating among other challenges.

Investment in energy efficiency results in reduction on expenditure on importation of commercial energy, particularly electricity.