• Presentation to the Development Foundation for Zimbabwe conference on engaging the Diaspora
Victoria Falls Zimbabwe 16-18th December 2010
• By Max Gomera
Nation-Building 3.0
Opportunities for Powering the Zimbabwean Economy from the emerging Renewable Energy
Maxwell Gomera
Context
• Zimbabwe has set an ambition of 5% GDP Growth– Growth areas likely to be mining, agriculture and
manufacturing– Growth from from at least two areas limited both in terms of
the distributive aspects of the wealth and potential for driving development.
• Growth is limited by weak energy sector– National power demand estimated at 2,000 to 3,200MW– Installed Capacity approximately 1,200MW– Available generation capacity approximately 1,000MW– Effective deficit approximately 1,900MW– With refurbishment of Hwange, Munyati, Harare and Kariba,
available generation might reach 1,650MW by 2015
Context
• Economy largely dependant on Coal, Hydro and Imports for energy– Climate change limits the potential for coal (in terms of
securing investment and pressures on emissions) – GRID sources have Limited Opportunity to power rural
areas• Where are the new areas for innovation?
– Renewable energy presents a development opportunity aimed at creating a new driver for economic growth; new sources of employment and consistent solutions for the improvement of environmental quality based on the recognition of the interdependence of environment and economy
Green Economy is not…
‘Ecological Footprint’ already exceeds Earth’s regenerative
capacity… our demands on the planet have doubled over the last 40
years…
One which consumes capital.. ..or risks human survival..
DOWN
UP
1. GEI Conceptual IssuesCharacteristics of Greening
Feasibility of Renewable Energy: Good ideas or just hot air? Some examples…
Renewable Energy
Energy
Emissions of CO2 in
energy production
stages (t/GWh)
Typical power generation
per unit (kW)
Investment Cost
(US$/kW)
Generation Cost
(US$/MWh)
Efficiency
(%)
Final Power Available (kW)
Mín Máx
Wind 7 2000 1.200 120 45 75 900
Photovoltaic 5 10 9.000 500 18 0,005 1.8
Biomass Null 50.000 2.500 78 35 2.5 17.500Small scale
hydroelectric 10 1.000 3.000 102 85 30 850
[1] Production stages: extraction of raw materials (when appropriate), construction of power plants and operation. .
Comparison between performance and cost of Renewable Energy technologies
Source: adapted from the presentation of the Center for Research on Electricity (CEPEL), 2007
Kenya – Feed-in Tariffs
Observed Impacts on Mumias Sugar Company
+ ten-year power purchase agreementUS Cents 6.0/ kWh
“TRIPLE WIN”
Reducing fuel
dependence
Coping with fuel scarcity
and price
Enhancing competitiveness
(5-6m factories)
Environmental Integrity
Enhancing energy security (500MW)
Job Creation (200,000
farmers)
Expected Benefits
• Facilitate resource mobilization
• Reduce transaction costs• Encourage private
investorsFTI Policy
FTI Aspects
China – Solar Water HeatersUNEP – Green Economy Initiative
Solar Water Heaters
China is world’s largest market
2/3 global share
Over 10% of population rely on
4o mil SWH systems in place
Implementation Plan on Promoting Solar Thermal
Utilization in 2007 (11th Five-Year Plan
for New and Renewable Energy)
Priority for hospitals, schools,
restaurants and swimming pool
China – Solar Water Heaters
Economic Benefits
Economic Benefits
Industry/ Highly profitable
Household/ save fuel costs (342 –
3321 yuan)
Environmental Benefits
Environmental Benefits
Reduce fossil fuel consumption
Save 348,000 t SCE of fossil energy/
year
Social BenefitsSocial
Benefits
Reduce risk of CO poisoning, Rheumatoid
arthritis
600,000 employed
Green buildings
• EASTGATE building in Zimbabwe uses less than 10% of the energy of a conventional building its size.
• Eastgate's owners saved $3.5 million on a $36 million building because an air-conditioning plant didn't have to be imported.
• Rents are 20% lower than in other buildings.
EASTGATE building in Zimbabwe mimics cooling mounds of termites
Source: Mick Pearce
Sustainable Transport
Source: Ministry of Transport
Source: DOT/Maritime Administration e TCL
Source: PDDT Vivo
Source: Ministry of Transport
Brazil – Sustainable Cities
Sustainable Planning Initiatives
Uganda – OA TransformationUNEP – Green Economy Initiative
Organic Agriculture
OA Growth in Uganda
US$ 22.8 mil (2007/8)US$ 6.2 mil (2004/5)US$ 3.7 mil (2003/4)
OA Exports in Uganda
Climate Contribution
48-68% lower carbon emissionCarbon Sequestration
Business Opportunity
Organic food & drink97% revenue –OECD countries
80% producer in developing countries
Constructing the Agenda....
• Use of Economic Instruments– Feed In Tariffs for Renewable energy
• Creating a market for renewable energy and increasing the number of producers Rewarding green production and creating a green market
– Accessing Global Financing• Clean Development Mechanism• Reducing Emissions from Degradation and Deforestation• Adaptation Funds
– Green Economy Credit Line• Support to Small and Medium Enterprises from local and
international financiers• Stimulus money, loan guarantees, grant programs
Constructing the Agenda…
• State programs for sustainable construction– Reduced taxes for green technologies– Develop policies to guide sustainable construction– Challenge the assumption of connection to ZESA– Water harvesting and individual water use control
• Payment for Ecosystem Services– Forests are important as offsetting tools– Wetlands, etc– Accessing such finances can be a challenge
• Support to local research capacities– Tech innovation will allow for production cost
reductions and installation cost reductions in the long run
Value
Time
Horizon 1:Acting together
with Business / Market leaders
Horizon 1:Acting together
with Business / Market leaders
Instruments / Actions
Transforming the Productive Sector
Value
Time
Horizon 1:Acting together
with leaders of the market
Horizon 1:Acting together
with leaders of the market
Horizon 2:Change processes
in the supply chain & bring the market average toward Env agenda
Horizon 2:Change processes
in the supply chain & bring the market average toward Env agenda
Instruments / Actions
Changes in project design
Transforming the Productive Sector
Value
Time
Horizon 1:Acting together
with leaders of market
Horizon 1:Acting together
with leaders of market
The Government of
Zim will contribute to
the stimulation of
sustainability in the private
business
The Government of
Zim will contribute to
the stimulation of
sustainability in the private
business
Horizon 2:Change processes
in the supply chain & bring the market average for the environmental agenda
Horizon 2:Change processes
in the supply chain & bring the market average for the environmental agenda
Horizon 3:Change all
elements of the production chain installed in Zimbabwe
Horizon 3:Change all
elements of the production chain installed in Zimbabwe
Instruments / Action
Change in design of projects
Change in social behavior
Planning tools and monitoring
Strategy with the Productive Sector
Green Economy
What does this mean for Gov and business ?
What does this mean for Gov and business ?•All agendas will need to link•Green Economy provides one framework for such a conversation•Concept brings together agenda of work, wealth and health•Unifies the key actors in the economy, including Business which will ultimately provide most of the solutions
•All agendas will need to link•Green Economy provides one framework for such a conversation•Concept brings together agenda of work, wealth and health•Unifies the key actors in the economy, including Business which will ultimately provide most of the solutions
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