• 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