National Energy Policy
The National Energy Policy (NEP) seeks to promote the optimal supply and utilisation of energy, for socio-economic development in a safe, sustainable and environmentally friendly manner. The policy identifies the key challenges in the exploitation, distribution and utilization of different energy resources, providing a detailed roadmap on how to address them.[1]
Background
Energy plays an invaluable role in social and economic development as it is a critical factor of production, its cost impacting directly on other services and the competitiveness of enterprises. Every productive sector in the economy relies on the provision of energy. It is therefore essential that the policy framework in this sector be sensitive to the ever-rising challenges not only in this sector but in the economy as a whole. It is clear that the essence of the NEP’s objectives will remain valid even though the social, political, environmental and economic situation changes continually.
In Zimbabwe biomass accounts for 61 percent of energy use in the country, a situation that leads to environmental degradation as families encroach on forests in search of firewood. With the rural electrification rate estimated at 13 percent and only 5.8 of the rural population having access to modern fuels for cooking and heating, compared to 78.8% in urban households, access to modern energy for thermal applications (cooking and heating) will remain a critical development challenge, experts say.
Policy Objective
The main objective is to create and promote a conducive environment for energy-sector players to be able to identify and develop opportunities for energy supply that promote sustainable development. Other objectives include:
- Ensure the availability, affordability and accessibility of electricity to all
sectors of the economy.
- Provide a platform for adequate and reliable access to electricity to all
at competitive prices.
- Allow access to IPPs and public–private partnerships, public–private
associations and other joint ventures.
Structure of the Policy
The NEP identifies the key challenges in the exploitation, distribution and utilisation of different energy resources, and provides broad policy objectives and strategies to address those challenges. The NEP has been formulated through extensive stakeholder consultation at all levels and sectors throughout society. The Policy contains strategies to translate the broad policy objectives into specific targets and actions in order to empower stakeholders to contribute towards the resolution and prevention of the recurring energy crises that have been facing the country. These strategies identify gaps between policy and practice and provide specific and actionable recommendations. The Policy is structured according to demand sectors, supply sectors, and cross-cutting issues.
Demand Side
The demand-side section highlights the issues and policy direction in the context of the five main demand sectors: agriculture, industry and mining, commerce and services, transport, and urban and rural households. The focus of the Policy in the commercial sectors is on the efficient use of energy in carrying out economic activities, and ensuring that an appropriate, reliable and good-quality supply is available. For households, both rural and urban, it is essential that access to energy services is increased – at an affordable price and in a sustainable manner. Basic energy needs should take into account cost, availability and health issues. However, the environmental effects of household energy use are severe in the rural areas, where people use wood as their primary source of energy for heating. Government will promote fuel-wood substitution as a way of conserving the fast dwindling wood resources.
Supply Side
The supply of energy relates mainly to the use of coal, petroleum products, electricity, gas and renewable energy. There are vast coal resources in the country that are presently underutilized. If used efficiently and sustainably, these resources can benefit the country in terms of economic growth, employment creation, self-sufficiency and trading power within the region.
Coal that is mined in the country is currently being used in agriculture, industry and power generation; small quantities are exported. However, supply has been failing to meet demand in recent years, resulting in some industries having to import coal. This Policy has attempted to address this issue, as coal mining can increase employment in the country and is critical for the development of projects such as thermal power stations. Government will also investigate options for the use of local coal for liquefaction and the resource potential of coal bed methane. Clean-coal technologies, to reduce the environmental impacts of coal, will be promoted in all coal projects, small or large. Research will be conducted on suitable equipment for utilising indigenous coal. The coal industry will remain in private hands to encourage investment and competition.
Petroleum products are the foundation of the transport sector and are presently regulated by Government. However, an independent regulator, Zimbabwe Energy Regulatory Authority (ZERA), is responsible for sector-wide regulation with a common vision to protect consumers and ensure affordable pricing. It has always been Government’s intention to have minimum intervention and regulation in this industry to encourage competition and investment. The policy challenges lie in increasing diversification in the procurement of petroleum products, developing a pricing mechanism suitable for the country, and increasing the storage capacity for products so as to mitigate supply disruptions. Opportunities for the development of natural gas will be pursued with the objective of diversifying energy supplies in the country.
Cross-cutting Issues
In addition to the demand and supply of energy, a number of issues cut across all the sub sectors. Zimbabwe is a landlocked country and hence is heavily dependent on energy imports, in particular of petroleum and electricity. Government therefore needs to ensure that there are strategic and buffer stocks, diverse supply routes for petroleum products, secure electricity supplies, and that local resources are maximised in terms of power generation. Security of energy supply can also be improved through the conservation of energy and the diversification of sources.
Other cross-cutting issues include safety, health, the environment, energy efficiency, access to energy for low-income groups, gender, quality assurance and quality standards, research and development, pricing, energy planning, and the need to take cognisance of regional and international energy trade and cooperation. Policy recommendations on these issues have been developed in line with the policy objectives. These issues provide linkages with other sectors that impact on energy development.
Government and Institutional Arrangements
The fundamental principle for an efficient institutional framework and governance is to minimise the conflicts of interest that are inherent in making, monitoring and implementing policy. At the national governance level, this is achieved by separating the legislature (law maker), judiciary (law interpreter) and executive (law implementer). At the energy-sector level, this is achieved by separating the policy-making role of the minister, the policy-monitoring role of the regulator, and the policy-implementation role of the energy service provider. Appropriate capacity-building should be undertaken so that each institution is able to discharge its responsibilities without interfering with the role of others.
As far as is practicable, in order to clarify roles and minimise conflicts of interest, the institutional framework and governance of the energy sector will be guided by the following principles: the minister decides policy, the regulator monitors and enforces policy, and the energy service providers execute the policy.
Energy Situation in Zimbabwe
The main sources of energy used in Zimbabwe comprise coal, wood fuel, electricity and petroleum fuels. According to the latest (2009) national energy balance, wood fuel provides the bulk (61%) of the total energy supply, followed by liquid fuels (18%), electricity (13%), and coal (8%).
