CCXG March 2019 Veronica Gundu Jakarasi Challenges and Opportunities for Implementing NDCs

1. Infrastructure Development Bank of Zimbabwe
Decarbonising Power Generation/Energy
Sector
“In pursuit of Zimbabwe’s First Green Bank”
OECD/IEA Climate Change Expert Group Global Forum
26-27 March 2019, Paris, France

2. o The IDBZ is a national DFI with a mandate on long-term infrastructure finance and development.
o The Bank is alive to the Sustainable Development Goals discourse and climate change issues.
o The Bank seeks to fulfil its mandate through various interventions including:
=> providing technical capability in project preparation/packaging, contract negotiations and
implementation monitoring;
=> mobilising resources for project development and implementation;
=> providing Capacity Building and Knowledge Sharing.
o The IDBZ values the importance of partnerships between the Bank and both public and private sector
stakeholders. The Bank is the nominated NIE to the Green Climate Fund.
Energy
Water & Sanitation
Transport
Housing
ICT
These sectors are
identified as key
enablers for sustainable
and inclusive socio-
economic development.
IDBZ Operational Activities

3. IDBZ’S Vision & Mission
• Vision: “A Zimbabwe with a robust, inclusive and sustainable growth and
development.”
• Mission: “ To champion sustainable infrastructure development through:
mobilisation of resources; capacity building; and knowledge generation
and sharing in support of national efforts for inclusive socio-economic
development.”
• Values: Integrity, Professionalism, Service Orientation, Sustainability and
Knowledge Generation and Sharing
• Sustainability – We support initiatives that are technically feasible,
financially and economically viable and socially equitable (Prioritised SDGs
5, 6, 7, 8 and 9).

4. Sustainability Overview …..
 70% of the Greenhouse Gases come from Infrastructure, including energy,
buildings etc
 There are existing obstacles in mobilising investment for low carbon and climate
resilient infrastructure
 Sustainability and resilience may be perceived as critical in addressing NDCs but
well‐defined concepts are not spread
 Sustainability is not always defined in monetary but rather qualitative terms
 Sustainability factors involve a long‐term investment horizon such as reduction of
climate risks
 Comprehensive and efficient measurement tools are needed to make risks and
benefits transparent especially as the country moves towards the
implementation of the NDCs.

5. • The Energy Industries (power sector) has the largest contribution of emissions
(around 25%)in the country.
• From the energy supply balance, Kariba Power Station contributed the most
energy with a 50% contribution to the total energy production. Hwange (Coal)
Power Station contributed 48% while the Small thermals contributed 2% to
the total energy production during the quarter (www.zpc.co.zw).
• Zimbabwe’s NDC is energy-sector centrered: 33% reduction of energy-sector
emissions per capita below BAU by 2030.
Zimbabwe’s Energy sector

6. • Zimbabwe is scaling up electricity generation from renewable/cleaner energy
sources. It has been noted that since 2015 the System Development Plans (SDPs)
are favouring power projects with low GHG emissions. (300 MW was added to the
grid).
• Zimbabwe is improving efficiency of coal power plants (Replaced chain grates with
fluidised systems at Harare Power Station in 2018; to improve efficiency from
around 15% to 20%)
• Zimbabwe has made the environment for Independent Power Producers (IPPs)
conducive. IPP policy being drafted is expected to stimulate electricity generation
from renewable energy. The installed capacity of small hydro power plants rose
from 1 MW in 2010 to around 30 MW in 2018. A 2.5 MW solar plant was
commissioned in 2018.
• Formulation of the Low Carbon Development Strategy is ongoing.
Translating NDCs targets into Strategies

7. Challenges
• Absence of well prepared fundable projects
• Lack of real time data and analytic tools
• Working in Silos
• Land acquisition (Rights to land for the project site);
• Generation License (ZERA);
• Grid connection, grid impact assessment and feed-in tariffs (ZERA_Legal
framework, how many days/months does it take);
• Offtake_Power Purchase Agreements (How is structuring done);
• Yield Assessment mechanism; and
• Environmental Impact Assessment (cost of carrying out).

8. • Currently, Zimbabwe’s rail transport locomotives uses diesel
• The nation intends to embark on rail electrification and shift the load from
the road to rail in order to improve efficiency, reduce costs and emissions,
reduce congestion and accidents on our roads
• However, the envisaged replacement of coal plants with hydro power plants
and solar plants will drastically reduce the load (coal) to be transported.
Role of Electric Plans in achieving NDCs

9. • The NDC target has played a big role in:
• bringing stakeholders together,
• encouraging long-term planning,
• exploring “non-mature” technologies.
• However, high costs of these technologies and lack of technical capacities are the
biggest barriers. Zimbabwe does not have the following projects:
• Carbon capture and storage (CCS) projects
• Pumped storage
• Large-scale battery storage
• These projects will be capable of reducing GHG emissions in the long-term but their
financial viability will depend on the rates of decrease of costs with technological
advancements; and
• Development of risk management framework and quality assurance processes for
project preparation activities, technical undertakings and documentation are key.
Non Mature Technologies vs GHGs Emissions Profile

10. Conclusion
- Competitive bidding, putting a carbon price, and low cost in renewable energy
will be key in decarbonising power generation.
- Boost private sector engagement in developing, designing, financing and
constructing decarbonisation projects.
- The Bank seeks to strengthen its capacity to mobilise climate finance and
integration of sustainability in planning and implementation towards achieving
NDCs targets.
- Standards, tools for planning and monitoring are key to achieving sustainability
and measuring the implementation of SDGs and NDCs.
- Enhance the Bank’s Measurement, Reporting and Verification capacity on
NDCs implementation (planning and design, appraisal, implementation,
monitoring and evaluation).
- The IDBZ seeks to play a key role in the country’s climate actions, including
decarbonising the Power sector, and is looking for support from cooperating
partners and stakeholders.

11. MERCI BEAUCOUP. THANK YOU. SIYABONGA
Contact Details for IDBZ Climate Finance Team:
Veronica Jakarasi: vjakarasi@idbz.co.zw
: climatefinance@idbz.co.zw
Infrastructure Development Bank of Zimbabwe
IDBZ House, 99 Rotten Row Road,
Harare, Zimbabwe
Tel: +263 4 750171-8
www.idbz.co.zw