Pre-studies ZESCO ERB support - Procurement support ERB Förstudier ZESCO ERB stöd PLEASE REVIEW YOUR ANSWER AS THE QUESTION HAS BEEN CHANGED

ZESCO, the national utility providing the bulk of electricity, has approached Sida för support to the key areas of a) Energy (electricity) efficiency and b) Distribution of electricity. 

Both areas are logically linked as increasing access presupposes sufficient power to distribute. Given the current inadequate electricity supply, and that the additional generation capacity will take long to materialise, a concentrated effort on reducing losses and making more efficient use of the available power is called for. Equally important are cost efficient way of providing access to unserved areas. The intervention consists of studies aimed at analysing the current situation, options and plans which will help in narrowing down the broad concepts before more detailed feasibility and design studies can be undertaken. Initially two  studies (see draft ToRs) have been outlined in collaboration with Zesco. These may have to be complemented at a later stage with detailed feasibility and designs of interventions.

Increasing access to modern energy services is an important cornerstone in the Government of Republic of Zambia (GRZ)’s efforts to combat poverty and stimulate economic and social development. Electricity is a key form of energy but currently  (2013) only some 26% of the total population (4,5% in rural areas) have access to electricity. The GRZ’s aim is to increase this to 30% and 8% respectively by 2018 (RSNDP). 

Electricity demand in Zambia is currently outstripping the available generation and distribution capacity. As a long term remedy, a number of major investments in the power sector are being initiated (which however will take long to implement). There is however significant potential to more rapidly increase power supply through better energy efficiency and Demand Side Management and ZESCO now intends to strengthen these areas . This would reduce the need for high cost investment in new generation , and more rapidly increase availability of power supply, especially for new customers. 

As new transmission lines are being planned/built it would seem logical to also consider distribution to growth areas along the transmission corridors and ancillary services to enhance connections and productive use of electricity.  This should have the potential to reduce the overall cost of rural electrification through economies of scale and faster revenue streams.

An earlier (2006) Cost of Service Study of Zesco now needs updating and ERB has requested support in formulating and procuring such a study. This is highly important and relevant to the mechanism for cost reflecting tariff setting which in turn is a king pin for investment in generation, transmission adn distribution. Exploratory/scooping studies to provide basis for possible            electrification interventions through Zesco /LK