The Sunday Mail
PRIVATE companies operating as independent power producers (IPPs) are injecting more than 18 mega watts (MW) into the national grid, with two major projects expected to contribute an additional 1 200 MW — about 66 percent of the country’s peak demand — by 2016, raising expectations that private sector players will ably complement the Zimbabwe Power Company (ZPC).
Zimbabwe, like other members of the Southern African Power Pool (SAPP), a grouping of national electricity companies in Southern Africa under the ambit of SADC (Southern African Development Community), is currently plagued by rolling power blackouts meant to ration power.
In the current winter season, demand for electricity by both domestic and industrial users has since soared to 1 800 MW, 700 MW more than the present generation capacity at 1 100MW as of Monday last week.
Though Government is pursuing medium and long-term projects such as the expansion of Kariba South and Hwange Power stations, IPPs are expected to provide relief in the short term.
The Zimbabwe Regulatory Authority (Zera) informed The Sunday Mail Business that of the 22 licensed power projects, 19 were IPPs and three were State-owned.
“There are three IPPs that are operating in the Eastern Highlands which are currently generating and directly feeding power into the grid. These are Duru (2,2MW), Nyamingura (1,1MW) and Pungwe A (2,75MW).
“The other IPPs are co-generating for own use and these are Triangle Limited with an installed capacity of 45MW, Hippo Valley (33MW) and Chisumbanje Power Plant (18MW). These three IPPs co-generate for own use using bagasse.
“However, the three IPPS contribute about 12MW into the national grid being excess power from their co-generation plants. In total, IPPs are contributing approximately 18MW into the national grid,” noted Zera.
It is believed that the IPPs in the Lowveld are capable of weaning swathes of Manicaland Province from the national grid.
Chisumbanje, which produces electricity as a by-product of the ethanol production process, is expected to contribute 10MW to the national grid by end of next month.
Presently, the existing transmission line is being upgraded to be able to evacuate power from Chisumbanje to the grid.
Similarly, Nyangani Renewable Energy is expected to commission the Pungwe “B” Power Plant that has a capacity of 15,3 MW.
“This project will significantly increase the contribution of IPPs to the national grid early 2015,” Zera added.
“Other larger projects that are promising to come on stream in 2016 are the China Africa Sunlight Energy’s Gwayi Power Plant and Southern Energy’s Shangano Power Plants which have 600MW each.”
Even though IPPs have managed to augment power supplies generated by the Zimbabwe Electricity Supply Authority (Zesa), they still fret about the current pricing model which is largely viewed as unattractive.
Power tariffs are currently negotiated between the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of the power utility, and the IPPs.
Market watchers argue that there is critical need to liberalise the power generation and distribution sector by opening it up to private players.
However, Zera contends that the current model conforms to international best practice and is favoured by investors.
Private firms in South Africa, where Eskom remains the sole buyer of power, are pushing for the establishment of an independent grid where they can sell the units.
But there still remains concern that safeguarding the local power utility’s monopoly to buy and sell electricity will only expose consumers to the whims and inefficiencies of the parastatal.
Zesa, which has five subsidiaries – ZETDC, ZPC, Zent Enterprises, Powertel and Zesa Holdings — is grappling to meet demand from consumers even at a time when demand remains muted.
Industries and domestic users are presently smarting from unremitting power outages.
Zimbabwe Power Company (ZPC) managing director Mr Noah Gwariro recently indicated that only 2 150 giga watts (GWh) were sold to consumers in the first three months of this year.
The figure was, however, 3,6 percent below the targeted output as system disturbances, low availability of boiler plant at the small thermals, shortage of feed water at Harare Power Station and load control at Kariba Power Station took their toll.
Over the years, Zimbabwe has failed to significantly invest in power generation.
Zimbabwe imports more, about 300MW, to supplement its local power generation capacity.
Experts say most of the country’s power stations need to be either refurbished or replaced altogether.
Kariba Power Station, Harare and Bulawayo thermal power stations were commissioned in 1955, 1942 and 1947 respectively, while Munyati was built in stages between 1946 and 1957.
Hwange, the 14th largest thermal station in Southern Africa, was also built in two stages — the 4x120MW units were commissioned between 1983 and 1986 and the 2 x 220MW were commissioned in 1986 and 1987.
Power shortages are expected to be reduced markedly once all IPP projects take off, and when Kariba South expansion concludes in 2018.
Statistics indicate that IPP projects that are lined up have the capacity to generate more than 7 572MW of electricity, which is more than four times the national demand.
The expansion of Kariba South, which is expected to add an extra 300MW to the grid, has already started.
The expansion is being undertaken by a Chinese-based firm Sino Hydro and a contract for the engineering, procurement and construction of two units, each with a capacity to generate 150 MW, was signed by the company and ZPC in December 2012.
ZPC public relations officer Ms Fadzai Chisveto said the expansion project is funded to the tune of US$319 million through a loan agreement signed between Government and the China Exim Bank in November last year.
She added that Sino Hydro, the engineering, procurement and construction contractor, has already mobilised equipment at the project site and trial blasting and drilling of tunnels has commenced.
ZPC is also working on the expansion of Hwange Thermal Power Station and repowering the three small thermal power stations — Harare, Bulawayo and Munyati.
A 100MW solar project is also in the pipeline.
The Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) classifies power under the infrastructure cluster.
Power is largely expected to underpin the country’s economic development through 2018.
But SADC is presently seized with plans to address the regional power shortages, which are, however, expected to be addressed this year.
The region, in which 95 percent of the rural areas have no electricity, is pushing through the Regional Infrastructure Development Masterplan that is projected to improve power generating capacity.
MOST of the local generating capacity by private companies is expected from two key sectors: Thermal and hydro power.
Thermal Power Projects
Licenced projects: Sengwa Power Station (2 400MW), Pan African Energy Resources Ltd (2 000MW), Southern Energy (600MW), China Africa Sunlight Energy (600MW), Essar Africa Holdings (600MW), Essar (Captive Power — 60MW) AND Zimbabwe Power Company (600MW — Hwange expansion project).
Expected total output: 6 860MW.
Challenges: Sengwa Power Station on ice as RioZim, the parent company, is still groaning from biting liquidity crunch.
Hydro Power Projects
Licenced projects: Great Zimbabwe Hydro (Pvt) Ltd (5MW), ZPC (30MW), Manako Power (5MW), Kupinga Renewable Energy (1,5MW), Kariba Hydro Power (Pvt) Ltd (300MW) and Pungwe “B” Power Station (15,3MW).
Expected total output: 355,3MW
IPPs not yet operational (14)
Sengwa Power Station, Pan African Energy Resources (Pvt) Ltd, Southern Energy, China Africa Sunlight Energy, Essar Africa Holdings (Pvt) Ltd, Essar (Captive Power), Great Zimbabwe Hydro Power (Pvt) Ltd, Zimbabwe Power Company, Manako Power (Pvt) Ltd, Kupinga Renewable Energy, Kariba Hydro Power (Pvt) Ltd, GeoBase Klean Energy Africa, ZPC and Pungwe B Power Station (Pvt) Ltd.
