Commercial Farmers Union of Zimbabwe

*** The views expressed in the articles published on this website DO NOT necessarily express the views of the Commercial Farmers' Union. ***

ZESA

More load shedding looms for Sadc

More load shedding looms for Sadc

load sheddingOliver Kazunga and Happiness Zengeni in Victoria Falls
SADC should brace for increased electricity load shedding between now and 2018 due to lack of investment and implementation of regional power projects, an official said yesterday.

Addressing delegates at the Regional Energy Regulators Association for Southern Africa meeting in Victoria Falls yesterday, the Southern African Power Pool Co-ordination Centre manager, Dr Lawrence Musaba, said energy projects were not properly packaged due to a lack of funding.

“Power deficits in Sadc started in 2007 and at the moment we’re commissioning projects that generate 1 100 megawatts yearly while the demand for energy is rising. Before the World Cup in 2010 power demand was 4,6 percent and is now averaging 5 percent.

“Between now and 2018 load shedding in the region will continue due to lack of implementation and delays in implementing other projects in the region,” he said.

“By 2018 all the countries in Sadc need to have an integrated approach to address power constraints in the region.”

This year, Dr Musaba said, the region was expected to commission 2 896MW but with a few weeks before the end of the year the target was likely to be missed.

“Our planned generation for the period 2014-2018 stands at 28 000MW. By 2016, we should be getting out of the deficit if the projects are implemented. There’s need for the region to implement the planned projects . . . ”

SAPP was constituted by 12 Sadc member states although the bloc has 16 countries.

“The region has installed generation capacity of 58 gigawatts and what is available is 51GW,” said Dr Musaba.

He said in terms of transmission the central corridor that includes countries such as the Democratic Republic of Congo, Mozambique , Malawi and Angola needed to be reinforced.

He noted that participation of the private sector in the energy sector through coming up with initiatives such as bankable power purchase agreements and appropriate levels of electricity tariffs, among others, was critical in the region.

He said the process of assigning priority projects and criteria when agreed by SAPP should be implemented by member states.

Demand for power in Southern African has been increasing at an average rate of 3 percent per annum. In the last 10 years demand for power in the SAPP region increased by over 32 percent, equivalent to 13 000MW. Unfortunately, there has been no corresponding investments in generation and transmission infrastructure (11 202MW generation added from 2004 to 2013) resulting in the supply deficit that the region was facing.

The reasons for the deficit include economic growth of more than 5 percent in most of the SADC member countries resulting in unprecedented growth in electricity consumption and demand.

There has also been an increase in demand for base metals resulting in high metal prices on the world market with new mining companies being established in the SADC region in the last few years.

Further, inadequate investments in generation and transmission infrastructure over the last 20 years caused shortage while electrification programmes have partly contributed to the increased consumption and demand.

The challenge of potential power shortage was identified and communicated, but not adequately mitigated.

Batoka to employ locals

Batoka to employ locals

BATOKA hydropower dam project is expected to create employment for about 3 000 people from both Zimbabwe and Zambia.

Ruth Ngwenya
Own Correspondent

Zambezi River Authority (ZRA) chief executive officer Munyaradzi Munondawafa yesterday said construction of Batoka Dam will create long lasting job opportunities for locals near the dam from both countries.

“While companies conducting rafting argue that they are going to provide employment through rafting activities, the building of the Batoka itself is going to provide employment for about 3 000 people,” he said.

“These people will be taken from the locality of the dam and we are talking of something which will last for five years or more probably from August next year.”

The Batoka hydropower project will have a 181 meter high dam wall that will hold back 1 680 million cubic meters of water, covering an area of approximately 26 square kilometres. Munondawafa said the Zimbabwe and Zambian governments gave clearances on development of Batoka.

“Currently we are waiting for update on feasibility studies as well as carrying out of the environment impact assessment,” he explained.

“Previous environment assessments were rejected because they had loopholes.

“A full report is expected by March, after that we go to development of Batoka Dam.”

Munondawafa said the report will also evaluate how much money the project will contribute for the next 50 years to the two countries compared to how much shearwater rafting had contributed in the past 50 years.

“If it is discovered that rafting has not contributed much, then we have to agree on what is required to be done and go on with the project,” he said.

ZRA is a bi-lateral organisation between Zimbabwe and Zambia mandated to manage the Zambezi River and come up with strategies of ensuring that electricity is always available.

“As a bi-lateral organisation, we have to ensure that there is no disruption of electricity supply due to any problems from water,” he said.

“We have to strategically ensure that the water quality and quantity is okay so that we do not drain the lake for the sake of coming up with electricity.”

One of ZRA projects is the upcoming rehabilitation of Kariba Dam complex, which is funded by the Zimbabwe and Zambian governments, with support from European Union, World Bank, African Development Bank and individual European countries like Sweden.

“The issue of funding is almost done,” he said.

“There is strong commitment that we will get the funding and we are expecting that we start the rehabilitation process by May next year. A total of $292 million is needed for the whole rehabilitation process.”

Sable buckles under $123m power bill

Sable buckles under $123m power bill

Ammonium-Nitrate-fertiliserGolden Sibanda Senior Business Reporter
FERTILISER manufacturer Sable Chemicals has accumulated a $123 million bill from the Zimbabwe Electricity Transmission and Distribution Company for unpaid electricity.

The bill constitutes about 10 percent of the total amount consumers owe the power transmission and distribution company, which is now estimated at over $900 million.

Sable Chemicals, based in the Midlands Province town of Kwekwe, consumes huge amounts of electricity, currently translating to average daily consumption of 80 megawatts. Most of the electricity is required to power the firm’s electrolysis plant.

Zimbabwe is only able to generate an average of 1 300MW with 2 200MW required at peak of demand.

Sable’s power bill has continued to grow exponentially since 2009, despite the company enjoying power supplies at a grossly subsidised rate due to Sable’s strategic importance.

The company is Zimbabwe’s sole producer of ammonium nitrate fertiliser.

Sable Chemicals has since dollarisation been getting power supply at 3 cents per kilowatt hour. ZETDC procures the electricity from the Zimbabwe Power Company – power utility Zesa Holdings’ generation unit – at 8 cents per kilowatt hour.

Sources said the company recently had its power supply disconnected over the arrears, but was reconnected to the grid following the intervention of Energy and Power Development Minister Dzikamai Mavhaire, allegedly at the directive of Cabinet.

Sources said Cabinet felt that cutting supplies to Sable Chemicals could affect availability of key agricultural inputs such as ammonium nitrate for the 2014-15 farming season.

Sable Chemicals electrolysis plant is used for the separation of water into oxygen and hydrogen. Hydrogen is a key input in the manufacture of ammonia, an important raw material used by Sable Chemical in the production of nitrogenous fertilizers.

The firm, operating at 40 percent capacity, is importing 30 percent of the ammonia required for nitrogenous fertilizer, with the balance produced at the Kwekwe plant.

“They want to continue getting the power at 3 cents/kWh when ZETDC buys the electricity at 8 cents/kWh; that is not sustainable. ZETDC ends up punishing customers through load shedding to supply a company that is not paying,” a source said.

The source said this affected resource mobilization to maintain the network and settle debts, because unlike the bills accrued by domestic consumers, there was no mechanism to defray part of the debt from periodic prepaid payments for electricity.

Contacted for comment Sable Chemical chief executive Mr Jack Murehwa said “governance dictates that we do not discuss our creditor, debtor situations in the press.”

He said it was “untrue” (that Sable Chemical owed $123 million for unpaid electricity) and also dismissed reports that the firm once had power supply disconnected.

“We were on reduced power for some period in November while discussions were going on between Government, Sable and ZESA on standing power supply arrangements.

Asked what plans were in place to settle of the massive bill, Mr Murehwa said “I am not sure what information you have on the $123 million, but you certainly seem misinformed,” saying governance dictated that such issues must stay clear of the press.

“However, if some of my creditors or debtors choose to discuss such information with you, that is them and I cannot be part of that discourse,” Mr Murehwa said.

Efforts to get official comment from Zesa Holdings also proved fruitless yesterday.

Mr Murehwa said Sable had always receiving support from Government since being founded in 1969 and the terms were agreed the three parties, including ZESA.

Zesa eyes more power imports

Zesa eyes more power imports

Engineer Chifamba

Engineer Chifamba

Business Reporter
ZESA Holdings is in negotiations with an unnamed regional power supplier to import about 250 megawatts while more than $1 billion will be spent on improving generation capacity and infrastructure development.

ZESA has been in a discussions with Hydro Cahora Bassa of Mozambique in which the two companies are expected to tie up a purchase agreement for the supply of 100 megawatts. Mozambique has been exporting 50 megawatts to Zimbabwe on a non-firm contract.

ZESA Holdings chief executive Engineer Josh Chifamba told the Parliamentary Portfolio Committee on Mines and Energy said negotiations are at an advanced stage to secure another power import deal.

“We may be able to get additional power from one of the regional suppliers to the tune of about 250 megawatts and I am saying with caution because we are still to reach an agreement. We are at an advanced stages in terms of discussions on the issue.

“I cannot reveal the identity of the supplier but I am quite sure the deal will be finalised soon,” said Engineer Chifamba.

He said for the year 2015 ZESA will spend money on improving generation capacity and infrastructure development through using internal resources and external sources.

ZESA has already made some headway in its generation development plans. The expansion of the Kariba Power Station by 300MW was in progress, and negotiations to expand Hwange by 600MW were taking place.

Plant rehabilitation and upgrades were also underway where ZESA had begun to upgrade the distribution network and strengthening the grid.

“We are looking at spending $1,047 billion and we made a request to Government for some money and on the $1,047 billion of the funding we will only be able to use our own finances of about $143 million and the remainder, which is about $872 million, will be sourced from external sources,” said Engineer Chifamba.

“We had sought from the fiscus this year to the tune of about $14 million which was to fund ZPC and ZETDC, what was actually allocated this year is $7 million. Of that total requirement we hope to close the gap through sources like the China EximBank and local banks,” he said.

Engineer Chifamba said in the course of 2013, ZESA issued some bonds but the subscription rate was disappointing.

He said IDBZ has, however, issued additional bonds for infrastructure projects at ZESA and there was hope that all the planned projects would soon take off.

“So we are thankful though we may not be getting some funds directly from the fiscus but we are thankful of the guarantee of some of the loans that we are getting,” said Engineer Chifamba.

He said efforts by ZESA to raise funding for Hwange and the Kariba South expansion were already underway and will be expected to come on stream in March 2018.

“We are hopeful that after signing the Hwange contract which is $1,5 billion contract, ZPC will have funds and we have set the challenge to ourselves to be able to do the project in six months. Right now we have three to fourth months to go before that can happen.”

He said the company’s smart meter initiative was improving its credit rating and more banks had begun to show interest in lending money to the power utility.

He said ZESA’s thrust is to restore investment credit rating and prepaid meters had provided a very good platform for that.

“ZESA has had to rely on its own resources as well as borrowing, but as we all know our financial market is not performing very well to sustain our financial requirements,” said Engineer Chifamba.

Hwange to get second power station

Hwange to get second power station

HARARE – An independent power producer, Co-Ash Resources has applied to set up a 1,000 megawatt thermal and gas-fired power station in Hwange, the Zimbabwe Energy Regulatory Authority (Zera) has said.

According to the energy regulator, the firm will generate power using waste coal from mining companies in the area using the plasma fired gasification technology.

Zimbabwe-Energy-Regulatory-Authority-(Zera)

Zimbabwe-Energy-Regulatory-Authority-(Zera)

Plasma gasification technology, which involves conversion of organic matter into electricity, is a globally accepted form of waste management which is already being used in developed countries such as the United Kingdom and France to generate power.

“The name of the generation station would be Hwange-CAR Advanced Plasma Waste Gasification power plant,” Zera said in a statement.

“The proposed plant will generate electricity using waste coal fines in the Hwange Colliery environs, Matabeleland North, Zimbabwe.”

Zera said the new power station’s generation method would help clean up “the now hazardous heavily mined environment whilst generating and supplying electricity in Zimbabwe.”

With Zimbabwe battling an energy shortage as demand continues to outrun supply, Zera has licensed over 15 IPPs to complement struggling power utility, Zesa Holdings, amid calls to license more private power generators.

Zesa is currently generating about half of the 2,200MW national requirement which has resulted in permanent load shedding being introduced for both households and industry impacting negatively on economic recovery efforts.

Energy minister Dzikamai Mavhaire recently encouraged IPPs to apply for licenses as government has opened up the sector to end Zesa’s monopoly in power generation.

Energy minister Dzikamai Mavhaire

Energy minister Dzikamai Mavhaire

“We have opened the sector, anyone who has the resource to set up the power generating plant should come on board and get licensed,” he said.

Zimbabwe Faces Black Christmas

Zimbabwe Faces Black Christmas

17 Nov 2014

fire-black-wallpaperZIMBABWE will experience more power cuts in December due to maintenance being carried out at Kariba South power station, a Zimbabwe Power Company official said.

Acting Kariba Power Station general manager Charles Bhebhe said Unit 6 will be shut down for six weeks from December 8, taking 125 megawatts off the national grid. “We will be shutting down Unit six at the beginning of December for upgrading,” Bhebhe said during a tour of the power station. So far, the refurbishment of other five units was completed with the last one being completed in October. On the expansion of Kariba South, drilling of six access tunnels is underway. As at beginning of this week 318 people, of which 83 are Chinese, have been employed on the project and at peak 700 will be employed.”

The $354 million upgrade of the Kariba South power plant would boost output to 1,050 megawatts from the current 750MWand will be financed through a loan from China Exim Bank, which will provide 90 percent with ZPC and its affiliates paying the remainder.

Addressing the same event, energy secretary Patson Mbiriri said the government had fulfilled its end of the bargain, suggesting ZPC had secured its share of the bill. “In terms of funding, we have given the project the priority,” said Mbiriri.

He also said there was need for strict supervision by ZPC and to undertake procurement audits to ensure that equipment meets requirements. - The Source

MoZiSa transmission line to boost power trading in Sadc

MoZiSa transmission line to boost power trading in Sadc

via MoZiSa transmission line to boost power trading in Sadc | The Herald October 23, 2014

Construction of a new power transmission line linking Mozambique, South Africa and Zimbabwe is expected to improve connectivity and electricity trading in Southern Africa.
Commonly referred to as the Mozambique-Zimbabwe-South Africa (MoZiSa) Transmission Project, the venture involves the three countries who are all linked to the regional grid.

All the power utilities in mainland SADC, with the exception of Angola, Malawi and the United Republic of Tanzania, are interconnected through the Southern African Power Pool (SAPP), allowing them to sell electricity to one another through a competitive market.

In this regard, the MoZiSa transmission project has the capacity to improve access to power through the regional grid, allowing the smooth transfer of electricity between and among SADC member states.

According to SAPP, the MoZiSa project is being supported by the respective utilities of the three countries, namely Electricicade de Moçambique (EDM), Eskom of South Africa and the Zimbabwe Electricity Supply Authority (ZESA).

The three utilities have since entered into a memorandum of understanding to develop the interconnector and have formed three joint project development teams. The joint teams — a steering committee, technical committee and commercial committee — have been tasked with spearheading the implementation process, which will be coordinated by SAPP.

SAPP is a regional body that coordinates the planning, generation, transmission and marketing of electricity in southern Africa on behalf of member state utilities.

Southern Africa considers the development of transmission lines as critical to addressing the energy deficit situation in the region, which dates back to 2007 when SADC ran out of excess electricity generation capacity and many regional transmission lines were becoming congested.

As such, the MoZiSa interconnector will complement other regional transmission lines and facilitate power transfers within the SAPP network.

Furthermore, it will increase stability in the power pool through additional interconnection between the strong network in the South and the weak network in the North of the region, which has been a source of SAPP grid instability.

As part of the MoZiSa project, there will be various separate developments to complement the project to ensure that the MoZiSa interconnector is a success.

For example, in Zimbabwe there will be a new substation at Triangle and another one at Orange Grove. Between Zimbabwe and South Africa, the Triangle-Nzhelele interconnector will be built with a 400kv line that stretches 275 kilometres. A new 400kV line bay at Nzhelele substation is also expected to be constructed. Other major developments are being proposed between Zimbabwe and Mozambique.

For example, a 185km-long 400kV line will be developed interconnecting Orange Grove in Zimbabwe to the Inchope Interconnector in Mozambique.

Furthermore, a new 400/220kV Inchope substation in Mozambique will be established, while a 360km long 400kV Inchope-Matambo line and a 400kV that stretches 115km will be constructed at Matambo-Songo.

SAPP has since received funding from the Project Preparation Feasibility Study Fund (PPFS) to be used to carry out a scoping study for the preparation of the MoZiSa transmission project.

The PPFS is jointly funded by the Development Bank of Southern Africa and Agence Française de Développement.
A call for consulting services was made in August to carry out a scoping and conceptualisation study that includes reviewing the initial technical studies and work already done by the three utilities and advise on the technical work on the proposed transmission lines. The work will focus on assessing the high level the risks inherent in the project at various stages of development. “These preparatory activities would enable the project sponsors and SAPP and funders to take the necessary and informed decisions regarding funding for the Bankable Feasibility Study of the projects,” reads part of the terms of reference for the consulting services for scoping study for the MoZiSa transmission project. The expressions of interest for the consulting services closed on 10 September, and SAPP is expected to announce the winning candidates soon.

The announcement will be an important step towards commencement of the implementation of the MoZiSa transmission project. — sardc.net

ZPC Generation Status 20 October 2014

Please click here to open this document which is saved in Adobe

‘Power shortages to continue till 2018′

‘Power shortages to continue till 2018′

via ‘Power shortages to continue till 2018′ – DailyNews Live 13 October 2014 by John Kachembere

HARARE – Energy minister Dzikamai Mavhaire said the country must brace itself for power cuts until 2018, when most of the current power projects would be completed.

Mavhaire said although the government identified power generation as a key enabler and driver in its quest to revive the economy, loadshedding will only ease after four years.

“It is a great thing for our countrymen, even in far-flung provinces and districts to have reliable and uninterrupted power supply, to have confidence in our power sector and to be able to go about their day to day activities with limited risks of loss of revenue from their business due to interrupted power supplies,” he said during the signing ceremony signed of $1,5 billion deal between Zimbabwe and  China’s Sino Hydro to expand a coal-fired power plant.

Zimbabwe is currently battling acute and frequent power shortages due to lack of investments in the sector. The country produces an average of 1 200 megawatts (MW) against a peak demand of 2 200 MW resulting in load-shedding.

In the past few months, the country’s sole power utility – Zesa Holdings — has increased loadshedding, forcing some parts of the country to go without electricity for up to 18 hours per day.

Under the new deal to expand Hwange Thermal Power station, which still needs full financial cover, Sino Hydro will add 600MW of electricity to the national grid.

“The additional electricity will narrow the demand-supply gap in a huge way,” said Mavhaire.

Zimbabwe recently awarded the tender for the expansion of Hwange Thermal Power Station to Sino Hydro after another Chinese company, China Machinery and Engineering Company (CMEC), failed to provide a funding plan to get the project off the ground, 14 months after winning the bid.

CMEC tendered its bid at $1,38 billion while Sino Hydro Corporation’s bid price was $1,17 billion.

The power station, the country’s largest coal-fired power plant, is currently using six units and the expansion would see the thermal power station adding two more units, which would have a combined generation capacity of 600 megawatts (MW).

China’s Export-Import Bank will provide a loan for the project, 80 percent of it at concessionary rates and 20 percent at commercial rates.

Wang Xinhuai, the Sino Hydro’s vice-president for Africa, whose company is currently undertaking a similar expansion project at Kariba Power Station pledged to execute the contract strictly and deliver the project with high quality.

Zesa exports power amid blackouts

Zesa exports power amid blackouts

October 3, 2014 

THE Zimbabwe Electricity Supply Authority, through its subsidiary Zimbabwe Power Company (ZPC), has increased the amount of electricity it is exporting to Namibian power utility Nampower amid local blackouts.

Owen Gagare

This is partly designed to fund the Kariba South Extension Project whose cost has ballooned from the initial US$355 million to US$533 million under suspicious circumstances.

The increased exports have exacerbated load-shedding countrywide, leading to a public outcry. Zimbabwe has a peak electricity demand of 2 200 megawatts but as of yesterday Zesa was producing 1 080MW.

The Zimbabwe Independent understands ZPC is exporting 150 megawatts to Nampower as part of an arrangement from a 2009 loan agreement where Zesa borrowed US$40 million. The power utility is also selling about 100MW to Nampower as part of efforts to raise money for the increased costs of the Kariba South project, which was officially launched by President Robert Mugabe last month.

The Kariba South Extension Project deal, which will add 300MW to the national grid when complete in 2017, was clinched during the inclusive government era when Elton Mangoma was Energy and Power Development minister, while his MDC-T Renewal Team counterpart Tendai Biti was Finance minister.

Mangoma and Biti have publicly stated that there was no justification for the escalation of project costs, suggesting that corrupt government officials where pocketing the US$178 million difference.

Mangoma said the original agreement was that ZPC would fund 15% of the project, with the Chinese meeting 85% of the costs. but while the Chinese loan has remained constant, ZPC costs have escalated, forcing the authority to raise funds to bridge the gap.

The Chinese have availed a US$320-million loan for the project while ZPC is weighing in with US$213 million borrowed from financial institutions.

Deputy Energy minister Munacho Mutezo has justified the cost escalation arguing the initial costs just factored in the engineering, procurement and construction, but did not take into account full project costs.

Besides the electricity being exported, ZPC is also seeking to reach a deal with big companies where it will guarantee them uninterrupted power supply in return for cash in advance.

“ZPC will be selling about 80MW to the larger companies and the application has been done in accordance with the Electricity Act (Chapter 13:19) of 2002,” said an official.

While the development would be good news to industry, which has been negatively affected by persistent load-shedding resulting in production going down or production costs increasing, the development will also increase power cuts in residential areas.

Zesa spokesman Fullard Gwasira had not by yesterday responded to written questions sent to him on Tuesday despite promising to do so. He was not picking up his mobile phone on Wednesday and yesterday.

However, Zesa public relations department released a statement to all mainstream newspapers on Wednesday confirming the increase in load-shedding, but did not mention the power exports.

“This has been due to a series of power system disturbances which resulted in forced generator outages and equipment failure, particularly at Hwange Power Station,” it said.

Zesa said the situation had been compounded by reduced imports from Hidroelectrica De CahoraBassa of Mozambique which is supplying the Zimbabwe Electricity Transmission and Distribution Company with 50MW, although previously the power utility said it could get up to 400MW.

In addition, Zesa said Kariba South generator number 5 came out of service on August 28 and would only be up tomorrow, while 80MW was being channelled to wheat farmers.

“Intermittent trips have been experienced on generators 4 and 6 from September 13, 2014, with the latest trip occurring on Sunday September 28 2014, with the unit still to return. The impact of this outage is the unavailability of 150MW from the grid,” Zesa said.

 

Zesa load-shedding to continue

Zesa load-shedding to continue

Bulawayo Bureau

The Herald

2 October 2014

ZESA Holdings has warned that its intensified load-shedding will last at least another three weeks, blaming reduced imports and depressed power generation at Hwange and Kariba.The power utility yesterday gave several reasons for failing to meet the nation’s power needs, including prioritising winter wheat farming and Mozambique’s decision to reduce power supplies to Zimbabwe.

 

Since Zesa began its heavy load-shedding schedule last month, some households are going for up to 16 hours without power daily.

 

Zesa spokesperson Mr Fullard Gwasira said Kariba South Generator Number 5 which was undergoing some maintenance work was scheduled to return to service on September 25, but the unit was still out.

 

“The power supply situation is expected to remain subdued for the next three weeks, after which there will be an improvement as maintenance works will have been completed,” said Mr Gwasira.

 

He added that the unreliability of Generators 4 and 6 at Hwange Power Station have contributed to the intensity of load shedding and the impact of this outage is 150 megawatts from the grid.

 

Mr Gwasira said since last month, more electricity was being channelled to the agriculture sector, but load shedding was restricted to non-wheat farmers and domestic consumers.

 

“After widespread consultations with agricultural stakeholders, a strategic decision in the national interest was taken from September 10, 2014, to support the winter crop, which was now experiencing severe moisture stress and required a final round of irrigation.

 

“A total of 80MW is being channelled to the wheat crop sector,” said Mr Gwasira.

 

Mr Gwasira also said the country’s primary source of power imports, Hidroelectrica de Cahora Bassa (HCB) in Mozambique, now supplies ZETDC with 50 megawatts, down from 400 megawatts.

 

This, he said, was owing to demand for electricity at coal fields in Mozambique’s Tete which has peaked significantly.

 

Mr Gwasira said the power utility was working towards improving the current situation and urged customers to use electricity wisely.

 

“The power utility apologies to its valued customers for the inconvenience this has caused and is doing its best to address the current challenges to improve the power supply situation.

 

“During these difficult times, customers can assist by using power very sparingly,” said Mr Gwasira.

Chinese firms partner govt in 1 200MW power station

Chinese firms partner govt in 1 200MW power station

September 18, 2014 

THREE Chinese firms have partnered government for the construction of 1 200 megawatts (MW) thermal power station, a move that would ease the country’s power shortages.

BUSINESS REPORTER

Shanghai Electric, Shenergy Co. Ltd and Niang Jiang Group will team up with the ministry of Energy and Power Development to set up a power station in an investment worth $5 billion.

The investment includes power generation and coal mining.

Jonathan Kadzura, Niang Jiang Southern Africa chairman said on Monday the investment was meant to address the power deficit and also export in the region.

“In Zimbabwe we have an acute shortage of power. It does not end within Zimbabwean borders, but throughout Africa,” he said.

“The country is looking for people who assist with local investments.”

Kadzura said the venture would use the abundant coal resources to generate electricity which can be exported to other countries. He said it was more expensive to export the coal than electricity.

“By the time we build the project to 1 200MW plus at least
$5 billion would have been invested in coal mining and power generation,” he said.

Zheng Jianhua president Shanghai Electric said the parties want to operate a power station in Zimbabwe.

The three Chinese firms will mobilise financial resources to build the power station. The deal does not mean that the country would be borrowing to finance the project, principal project advisor Nyasha Makuvise said.

“We are not borrowing as a country, but making sure that people come in and invest,” he said.

He said the investments would usher in a number of exports initiatives.

Shanghai Electric is a multinational power generation and electrical equipment manufacturing company headquartered in Shanghai, China.

Shenergy Company Limited is engaged in the investment, construction, operation, and management of power, and oil and gas projects. It has 18 electric power projects in various power fields, such as thermal power, gas power, hydropower, and nuclear power.

Niang Jiang has mining and industrial operations in Zimbabwe.
The country is grappling a power crisis as output is far outstripped by demand.

The country generates an average of 1 200MW daily at a time when demand can peak to 2 200MW.

Expansions work at Kariba and Hwange power stations have commenced and would be completed in 42 months.

When completed, the expansions would result in 900MW being added onto the grid.

 

Hwange fault triggers massive load-shedding

Hwange fault triggers massive load-shedding

 

September 12, 2014 in NewsDay

 

Power utility Zesa yesterday said the power outages experienced in most parts of the country were due to technical fault at Hwange Power Station.

 

Winstone Antonio

Own Correspondent

Zesa spokesman Fullard Gwasira said technicians were working round the clock to rectify the problem.

 

“We lost generation due to external system disturbance which then tripped generation of power at the station,” Gwasira said.

 

“We are expecting a phased restoration starting tonight (yesterday) and the second by tomorrow (today) and as a result of this we are no longer adhering to the load-shedding schedule.”

 

Zesa Holdings is currently in the eye of storm over increased and unscheduled load-shedding caused mainly by obsolete infrastructure.

$533m Kariba project begins •Station to generate 300MW more by 2017

$533m Kariba project begins •Station to generate 300MW more by 2017 •Move boon for Zim-Asset

President Mugabe uses a drilling rig at the ground breaking ceremony for the expansion of Kariba South Hydro Power Station in Kariba yesterday. Looking on are his son Bellarmine (centre), Energy and Power Development Minister Dzikamai Mavhaire (right) and other dignitaries.

President Mugabe uses a drilling rig at the ground breaking ceremony for the expansion of Kariba South Hydro Power Station in Kariba yesterday. Looking on are his son Bellarmine (centre), Energy and Power Development Minister Dzikamai Mavhaire (right) and other dignitaries.

Takunda Maodza in KARIBA
PRESIDENT Mugabe yesterday commissioned the construction of the US$533 million Kariba South Power Extension Project expected to generate an additional 300MW by 2017. The project had been on the cards for years with its implementation hampered by the shortageof foreign currency among other obstacles.

Development of Infrastructure and Utilities is one of the key pillars of Zim-Asset which identifies energy and power development as key enablers to productivity and socio-economic development.

Over the years, the power sector has experienced challenges largely due to dilapidated and obsolete generation equipment and infrastructure as well as inadequate financing and capitalisation and other structural bottlenecks.

The US$320 million loan extended by the Chinese government has, however, made the project a reality with the Zimbabwe Power Company weighing in with US$213 million borrowed from Development Finance Institutions.

Speaking soon after the groundbreaking ceremony, President Mugabe said he was happy that finally the project was taking shape.
“The Kariba Extension project has been on Zesa’s drawing board for a very long time. It’s coming to fruition has been hampered by many challenges which include shortage of foreign currency during the hyperinflation era. The feasibility studies for the project were eventually updated, paving the way for its completion and implementation,” President Mugabe said.

“The successful completion and commissioning of this project, Kariba South Power Station Extension, will add 300 megawatts of power to the national grid. Indeed, the project is a vital component of the Government’s strategy to meet the country’s electricity demands. It is part of our major plan to guarantee the constant and consistent supply of energy for our country.”

President Mugabe said the project entailed construction of an additional two 150MW power generating units to complement the current six 125MW generating units.

“This will increase the total capacity at the Kariba Hydro Power Station from 750MW to 1050MW. This additional capacity will serve the peak demand, significantly reducing the load shedding that we are currently experiencing,” he said.

Added President Mugabe: “Projects such as this one, do not merely bring power into our homes and workplaces, but they also empower the people of Zimbabwe. I am informed that over the four years that the project will be implemented, it will employ a total of 700 workers with the majority of the general workers drawn from local communities. To date, about 200 workers have been engaged.”

He said power projects like the Kariba Power Station Extension were an important part of Government’s goal towards an empowered society and a growing economy.

 

“Adequate power supply infrastructure, not only helps attract investors to our country but in bringing electricity to rural areas, which improves the quality of life to our rural people,” President Mugabe said.

He said hydro-power projects were costly to undertake and thanked the Chinese government for funding the extension of Kariba South through a loan facility.

“The implementation of this project is expected to cost a total of $533 million. I wish to express my sincere appreciation to the Chinese government for extending a loan of $320 million for the implementation of this project. The balance, $213 million, is provided for by Zimbabwe Power Company borrowing from Development Finance Institutions,” President Mugabe said.

“We also need hydro projects such as Batoka and Devils Gorge on the Zambezi River, Gairezi, Tokwe Mukosi, Kondo, as well as other small hydros, on both existing and proposed national dams. I understand that through such small hydro projects, we can generate a total of 5000MW nationwide. Such a development would provide the nation with additional and cheaper electricity for both industry and commerce, and as a result, attract investment to Zimbabwe. We certainly should actively pursue this line of action.”

President Mugabe said Government recognised the key role the energy sector plays as an economic enabler.
“For this reason, we have taken great steps to create an environment where participation in the power sector and state owned companies, such as the Zimbabwe Power Company. The regulatory framework, and the requisite statutes, are in place. This has seen development of power generation projects by Independent Power Producers (IPPs), who, I am advised, are already providing power from small hydro power station generation plants,” he said.

President Mugabe warned that delays in the implementation of public projects as has been the case in the past would not be tolerated.
“I, however, would like to observe that implementation of public projects has, in the past, been characterised by inefficiency, delays, and lack of commitment, which, cumulatively, have often compromised the cost-effectiveness of the projects. This cannot be allowed to continue. Zimbabwe values the dependable supply of electricity from Kariba Power Station, which has supported the nation’s economy over the past five decades,” he said.

President Mugabe urged the Ministry of Energy and Power Development to ensure the Kariba South Extension project is well executed and applauded the Zambezi River Authority for the rehabilitation of flood gates and the remodeling of the plunge pool to ensure it does not become a threat to the integrity of the dam wall.

He bemoaned the theft and vandalism of electricity infrastructure saying it was a blow to efforts by Government to provide uninterrupted power.

“We are, however, concerned that of late, theft and vandalism of electricity infrastructure has been escalated. Thus, as we try to increase power generation and extend the national grid, some elements in our society are hell bent on taking us back. The most effective way of combating this scourge is social policing. Communities must report the perpetrators of such crimes to the police and other security agents, and the courts must take a dim view of such crimes as provided for in our existing law. Deterrent sentences must be handed down,” he said.

Energy and Power Development Minister Dzikamai Mavhaire said the construction of Kariba South Power Station Extension would help alleviate power outages.

Several Government officials among them Senior Minister of State Cde Simon Khaya Moyo and Chinese ambassador to Zimbabwe Mr Lin Lin attended the ground breaking ceremony.

ZPC seeks approval to sell 80MW

ZPC seeks approval to sell 80MW

via ZPC seeks approval to sell 80MW | The Herald 26 August 2014

The Zimbabwe Power Company (ZPC) is seeking regulatory approval to sell 80MW of electricity to large off takers for a certain period in order to raise additional funding for the expansion of Kariba South power plant.
Chinese firm, Sino Hydro, won the contract to expand the country’s second largest power station by 300 megawatts. The project will cost about $355 million, with Government supplementing 10 percent of the total cost, which is about $35 million.

A ground-breaking ceremony to mark commencement of construction is expected to be held next month.
The Zimbabwe Energy Regulatory Authority (Zera) said the proposal by ZPC had been made in terms of section 40 of the Electricity Act.

“Notice is hereby given that Zera has received an application from ZPC to sell 80MW of power at a load factor of 50 percent to large consumers,” it said in a statement.
“The sale of the 80MW capacity will be done under a power purchase agreement between ZPC and large off takers to raise additional funds for the Kariba South Extension project.”

Zimbabwe is currently facing power shortages as national power demand at peak periods is estimated at 2 200MW against available generation of about 1 200MW with the shortfall being imported from regional power utilities.

But Government, through ZPC, has embarked on several projects to bridge the power deficit through expanding existing power stations and building new ones. For example plans are also in place to add two units at Hwange Thermal Power Station, which would have a combined generation capacity of 600 megawatts.

Zimbabwe is also working with the Zambian government to build the Batoka Gorge power station, which is expected to generate 1 600MW of electricity to be shared equally by the two countries when complete. — New Ziana.

Zesa tightens tariffs

Zesa tightens tariffs

August 25, 2014 

THE Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a subsidiary of Zesa Holdings, is next week set to re-introduce stepped pre-payment tariffs for domestic consumers to replace the current flat rate.

CHIEF REPORTER

ZETDC said customers risked losing their $0,02 monthly life line if they exhausted purchased units within a month.

“In its award of the 2014 electricity tariffs, the Zimbabwe Energy Regularity Authority (Zera) has directed the re-introduction of a stepped pre-payment tariff for domestic consumers to replace the current flat rate with effect from 1st September,” ZETDC said.

The first 50-kilowatt-hour (kwh)would be billed at 2c per unit while those who consume between 51kwh and 300kwh are charged at 11 cents per unit.

Those who exceed the 300 units are charged at a higher charge of 15c per unit.

“The introduction of the stepped domestic payment tariff will now require consumers to use electricity more efficiently.

“Heavy domestic users will pay more for their consumption.
“In every calendar month, customers are afforded a life line rate of $0,02 for first 50kwh.

“The next 250kwh (51 to 300kwh) in the same calendar month is charged at $0,11 and the balance in excess of 300kmw within same calendar month will be charged at $0,15.”

The power utility said the life line is applicable within each calendar month.

If a customer buys $28,50 worth of electricity, the units would be $1 for first 50kwh and $27,50 for 51-300kwh.

“If the same customer comes for a second purchase within the same month using the same amount of money ($28,50) the customers will get 190kwh and not 300kwh as in the first purchase of that month.
“This is because at second purchase, the customer will have exhausted the life line benefit.”

Zesa rolled out prepaid meters in 2011 to encourage the efficient use of electricity in the wake of demand outstripping generation capacity.

As outlined in ZimAsset, the government’s economic policy blueprint, Zimbabwe has a target of installing 800 000 prepaid meters by the end of this year.

To date 377 552 have already been installed by Solahart, ZTE (a Chinese company), Finmark and Nyamazela of South Africa.
An additional 300 000 meters are supposed to be installed by the end of this year.

 

 

Sable Chemicals faces electricity challenges

Sable Chemicals faces electricity challenges

August 25, 2014 

THE country’s sole ammonium nitrate fertiliser producer, Sable Chemicals, is currently operating at below 40% because of wrangles involving a $30 million debt to Zesa Holdings.

BLESSED MHLANGA

The power utility, which in the past resorted to switching off Sable Chemicals completely over the debt, is reported to have significantly reduced power supplies to the Kwekwe-based plant forcing the company to shut down some of its electrolysis units.

Sources at the company told NewsDay that Sable Chemicals, which has 14 electrolysis units, was operating only four because of limited power supplies owing to the tiff over the debt.

“We have 14 units; four are down and need major maintenance work, but the other 10 can go online if we are given adequate power supplies by Zesa. Currently, the power we get from Zesa is sufficient to operate only four units,” said the source.

Sable Chemicals needs 115 megawatts (MW) per hour to run its plant at 100%, but the company says it is only getting 40MW per hour, which is only sufficient to power four units.

“We would need 92MW of power to put all 10 units on line with each unit producing 1 400 cubic metres of hydrogen per hour. If the power problem is solved, we would be able to produce 14 000 cubic metres of hydrogen an hour. The situation is better because there is no total shutdown of the plant like what was happening in the past,” said the source.

Sable Chemicals chief executive officer Jack Murehwa was not immediately available for comment, but has previously conceded that the company was facing challenges over the power debt.

Sable Chemicals buys power from Zesa at subsidised rates with the difference supposed to be settled by government.

Murehwa has on several occasions indicated that his company religiously paid its portion and urged the power utility to approach government for payment of the other part.

 

Harare lawyer Tendai Masawi has already filed a High Court application seeking to attach Sable Chemicals’ property over the debt.

‘Kariba South Power Station fees to balloon’

‘Kariba South Power Station fees to balloon’

via ‘Kariba South Power Station fees to balloon’ – DailyNews Live 21 July 2014 by Kudzai Chawafambira

HARARE – ZESA Holdings (Zesa) says the total cost of completing the expansion of the Kariba South Power Station will balloon to around $539 million from the budgeted $380 million.

The power utility’s chief executive Josh Chifamba (pictured) told the Mines and Energy parliamentary portfolio committee last Monday that the funding that they were getting from China’s Sino Hydro Corporation (SHC) only covers 85 percent of the cost.

“So that $380 million we are talking about, will be 85 percent of the cost of bringing cement, equipment, generators and auxiliary plant among others things.

“The other 15 percent is what we have to raise. When we are doing this and because actually get money from the bank, we should pay interest on the amount we would have borrowed.

“By the time we roll up those costs the total project would have cost more,” he said.

Chifamba added that they had to raise $150 million as equity funds and that the total cost of completing the Kariba expansion project would reach up to $539 million.

“Lenders also want to know that you are taking the risk and putting a skin to it,” he said.

This comes as SHC has already moved construction equipment from Zambia to commence operations on the Zimbabwean side of the Kariba dam wall.

SHC won the tender for the $380 million project, the bulk of which will be funded by Export Import Bank of China under a deal signed with the Zimbabwe government.

Early this year Finance minister Patrick Chinamasa said that the SHC was already in situ at the construction site.

“As you know, this Chinese contractor has just finished constructing Kariba North for the Republic of Zambia and they are just moving across the border to do the same on our side to create an additional 300 megawatts,” said Chinamasa.

On completion, the power station’s output will be boosted to 1050 megawatts (MW) from the current 750MW.
The project is expected to be complete by 2017.

Government secured funding for the project, after signing a $380 million deal with the Chinese multi-lateral financial institution late last year with Zimbabwe Power Company (ZPC) expected to contribute 15 percent of the total cost of the expansion exercise.

At present, ZPC — a subsidiary of power utility Zesa Holdings — is generating between 1 300 and 1 400 MW against a daily national demand of 2 200MW.

This comes as Zimbabwe requires $5,8 billion to finance power generation projects which will increase output to a total of 6600 megawatts.

Government is currently seeking to partner regional power utilities and private investors in new energy projects, as part of efforts to boost its electricity supply.

In 2007, the country partnered Namibia’s NamPower to refurbish Hwange Power Station.

Chifamba noted that of the 150 MW in export to Namibia for the service of a $40 million loan used to rehabilitate Hwange by NamPower, ZPC was left with about 10 months supply to the neighbouring country.

Another long-standing initiative is the Batoka Gorge project for four 200 megawatt power generators in the next six years.

This massive scheme along the Zambezi River is projected to cost $2,2 billion.

Work on Batoka Gorge in terms of bidding stages for a comprehensive environmental and social impact assessment and an engineering feasibility study will be concluded by March next year.

Other proposed projects are the Gairezi hydropower station in Nyanga; an extension of the generation life cycle at Hwange; the upgrading of Deka pipeline; repowering schemes at Harare, Munyati and Bulawayo power stations, and a coal-bed methane project in Matabeleland North.

The country has five power stations, namely Kariba and four thermal power stations — Bulawayo, Harare, Hwange and Munyati.

Kariba is currently generating 37,28 percent, Hwange 28,67 percent, Bulawayo 1,2 percent, Munyati 1,4 percent and Harare 0,4 percent while imports contribute 13,22 percent while 17,69 percent represents the shortfall.

Bulawayo Power Station shut down

Bulawayo Power Station shut down

via Bulawayo Power Station shut down | Radio Dialogue  14 July 2014 by Lesley Moyo

The Zimbabwe Power Company has shut down Bulawayo Power Station to pave way for investigations to establish the source of a strange smoke in one of the generators.

The station has an installed capacity of 90 MW but only feed an average of 20 MW into the national grid.

“Station was shut down on 10/07/14 at 1325hrs due to smoke that was observed on generator 3 alternator casing. Investigations to establish the source of the smoke are in progress,” ZPC said in a statement.

According to ZPC, boiler 5 is on statutory inspection with boiler 7, 8, 9 on standby.

“Generator 3 (was) taken out due to smoke coming from alternator side. Investigations are in progress. Generator 4 commissioning tests and slip ring polishing in progress,” it added.

Bulawayo station was mothballed for more than 10 years and brought back to service in 2011 when power shortages intensified.

Zimbabwe has two other small thermal power stations in Harare and Munyati near Kwekwe in central Zimbabwe.

Like other power stations, the Bulawayo station’s generating capacity has been constrained by aging equipment.

In 2013, ZPC approached Indian government to fund refurbishment of the thermal power station.

The thermal power station was commissioned in the 1950s as an undertaking by the Bulawayo municipality. It was transferred to the Zimbabwe Electricity Supply Authority in 1987 after the amalgamation of all the local authority electricity undertakings, the Electricity Supply Commission, thermal power stations at Munyati and Hwange and the Central African Power Corporation station at Kariba.

Unbundling of Zesa business units has resulted in the plant falling under ZPC.

Zesa exports 150MW of power to Namibia

Zesa exports 150MW of power to Namibia

 

July 15th, 2014

 

JAIROS SAUNYAMA - 

Zesa Holdings will for the next 10 months be exporting power to Namibia as part of settling the $40m debt acquired from NamPower in 2009.

Zesa Holdings chief executive Josh Chifamba told the parliamentary portfolio committee on Mines and Energy chaired by Gutu Central legislator Lovemore Matuke 0n Monday that Zesa is exporting 150MW of electricity to Namibia as a form of payment.

“We got in 2009 a total of $40m from the Namibian power company NamPower. That money has since been paid wholly but it had another term to it, there was a requirement that we should supply 150MW of power over the subsistence of the loan,” he said.

The country is currently unable to generate enough power to meet demand, which peaks at around 2 200MW against generation capacity of around 1 400MW.

Speaking on how Zesa is exporting power at night, the  power utility boss said the issue was reported negatively by the media.

“On the issue of power exports at night, I think it was portrayed negatively by some quarters of the press but actually there is nothing negative about it.

“The issue is that demand comes down at night, normally demand peaks in the morning and evening, so we can make some opportunity sales. The problem with power is that you cannot store it,” he added.

Zimbabwe is facing an acute energy deficit, which has prompted Zesa to introduce load shedding.

Zesa Holdings is in the process of expanding Kariba South power plant in an effort to increase power generation by at least 300 MW and Hwange Thermal Power Station so that it produces 600 MW.

The expansion at the two power plants will see Zimbabwe producing about 2500 MW against a peak demand of 2200 MW.

Power crisis hits dairy industry

Power crisis hits dairy industry

via Power crisis hits dairy industry – DailyNews Live 14 July 2014 by Ndakaziva Majaka

HARARE -  Zimbabwe’s dairy industry is losing nearly $100 000 in potential revenue annually due to excessive power outages currently rocking the country, a recent study has revealed.

According to the Zimbabwe Economic Policy Analysis and Research Unit (Zeparu) report on Agro-Industries/Food and Beverages Value Chain, the country has been producing around 50 million litres per year against a combined capacity to produce about 400 million litres annually.

Zimbabwe’s national milk demand is estimated at 240 million litres. The land-locked country currently generates approximately 1 300 megawatts (MW) against peak demand of around 2 200 MW.

“The product losses resulting from the power outages are estimated at a maximum of 2,5 percent of total production,” Zeparu said in the report, adding that milk processors are “under capacitated”.

The think tank said a litre of milk is going for an average $1,45, which is more expensive than imported milk.

It said Zimbabwe’s dairy industry was fairly well developed with seven major processors and over 20 smaller processors. Major milk processors in the country include listed Dairibord Zimbabwe Holdings Limited, Alpha Omega Dairy and Dendairy.

They produce yoghurt, cheese, powdered milk, milk-based beverages, ice cream and liquid milk — pasteurised and UHT milk.

“The overall capacity utilisation is below 50 percent mainly due to low supplies of raw milk from the farms,” Zeparu said.

“Milk output from the farms has been declining over the years,” Zeperu said.

According to the study, this has led to decline in capacity utilisation and thus impacting negatively on production costs and price to the final consumer and the influx of imports from neighbouring countries, for example Zambia and South Africa.

Contact Us

42 Bates Street,
Milton Park,
Harare, Zimbabwe.

P O Box WGT 390, Westgate, Harare, Zimbabwe.

phone  +263 4 790264 / 792757 / 790274
                   790277 / 790276

email  Email us here

Places  Find us on Google Maps