Commercial Farmers Union of Zimbabwe

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ZESA

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

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‘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.

Massive load-shedding begins

Massive load-shedding begins

Load sheddingFelex Share Herald Reporter
Many Zimbabwean football lovers will miss FIFA 2014 Soccer World Cup matches because of increased load shedding, with the latest schedule published by Zesa showing that some areas will be without power almost daily.
The World Cup begins in Brazil tomorrow.

Businesses have not been spared from the load-shedding as demand for power soars during winter.

Eastern suburbs like Mandlay Park, Ruwa, Chadcombe, Epworth, Queensdale and Msasa Park, which fall in the H14 category of the load shedding schedule, are going for up to 16 hours without electricity.

The situation is the same for western high-density suburbs like Warren Park, Glen Norah, Mufakose and Kambuzuma.

Other areas will go for nine hours without electricity daily.

In a statement yesterday, Zesa said the country’s maximum demand reached 1 800MW in winter, against generating capacity of between 1 350MW and 1 400MW.

“To this end, Zesa has put in place measures to boost power generation and reduce consumption to minimise load shedding.

“In spite of the measures power supply shortfalls will still be experienced.

“It should be noted that the published schedules should be treated as a guide since power supply and demand are dynamic,” the utility said.

Zesa said major referral hospitals and sewer installations, national security establishments, key airports and broadcasting stations would be exempted from load shedding.

 

“In addition, winter wheat irrigation will receive additional support in the 2014 season to ensure the success of the crop,” Zesa said.

“Consumers are being called upon to play their part in reducing demand by using the available power sparingly. All non-essential loads and appliances should be switched off at all times. Non-essential lights and office equipment should be switched off overnight.”

Confederation of Zimbabwe Industries president Mr Charles Msipa said load-shedding would disrupt efforts to revive capacity utilisation.

“While we understand that Zesa has a difficult task in balancing demand and power generation they should also put at the forefront the industry and manufacturing sector,” he said.

“Many of them are trying against all odds to retain and built market exports and these outages will have a negative impact. They should always consult first not just pick what they think are strategic areas as they leave other areas as they did.”

Residents said Zesa should do more on power generation.

“What pains most is that this is coming a few days before the World Cup,” said Mr Tinashe Tiki of Glen Norah.

“Everyone has been counting down towards this only to read that we will not have power when exciting matches will be played.”

Mr Paymore Mbidzo said load-shedding was unfair as some areas appeared favoured.

Zesa said it was considering installing new boiler technologies for its three thermal power stations in Harare, Bulawayo and Munyati to reduce the power deficit.

The stations are hardly in use as they require a special type of coal from Hwange to fire them.

The new technologies will allow use of different types of coal obtainable from areas closer to the stations.

The project will give the country 240MW.

Faults at Power Stations Trigger countrywide blackout

Faults at Power Stations Trigger countrywide blackout

blackHerald Reporter
Electricity supplies were disrupted throughout the country yesterday following faults experienced at the country’s three major power stations. Zesa Holdings said in a statement that the power stations affected were Kariba Hydro-Power Station, Hwange Power Station and Harare Power Station. The cause of the power failure was yet to be ascertained, although Zesa Holdings spokesperson Mr Fullard Gwasira said in a statement that it was caused by “a power system disturbance that originated from outside the country’s borders”.

He said electricity distribution was affected throughout the country.

Technicians were battling to restore normal supplies by yesterday and many areas were expected to receive normal supplies soon.

 

Only Bulawayo and Munyati thermal power stations were not affected by the technical fault, but they do not have capacity to sufficiently power the country.

Hwange Power Station has the installed capacity of 920 mega watts to the national grid, while Kariba Hydro-Power Station can provide 750 mega watts, with Harare Power Station managing only 90 mega watts.

Zesa Holdings’ subsidiary, the Zimbabwe Electricity Transmission and Distribution Company, has been carrying out planned shutdowns to allow allow maintenance work in most of parts of the country.

The situation has been worsened by the winter season where there is huge demand for electricity.

Areas in Masvingo, Harare and Manicaland provinces were recently affected by such a shutdown.

Zimbabwe affords only 1 300 megawatts of power against a demand of 2 200 megawatts during the peak season like winter.

Zesa Holdings has since embarked on massive power blackouts throughout the country to help serve electricity.

Power outage hits capital

Power outage hits capital

 
 

A POWER outage affected Harare and some parts of the country yesterday bringing business to a standstill for several hours.

WINSTONE ANTONIO

Power went off at around 8:30 in the morning and was only reconnected around midday. This forced many businesses around the country to resort to generators.

ZESA Holdings (Zesa) spokesman Fullard Gwasira said the blackout was a result of a technical problem at one of the power utility’s stations in Kariba.

“We had a system disturbance on the national grid, but all the generators at Kariba station were restored,” Gwasira said.

“At Hwange Power Station, we are expecting that they will finish servicing some of the generators today (yesterday).”

This is not the first time the city and some parts of the country have gone for hours without electricity due to technical faults.

Power supply not guaranteed: #Zimbabwe

Power supply not guaranteed: #Zimbabwe | The Herald

via Power supply not guaranteed: Govt | The Herald March 18, 2014 by Tendai Mugabe and Daniel Kachere

Minister Mavhaire

Energy and Power Development Minister Dzikamai Mavhaire says he cannot guarantee the nation of adequate power supplies to ensure successful implementation of Zim-Asset, especially in terms of the economic blueprint’s value addition and beneficiation clusters.
Minister Mavhaire said major projects like Batoka Hydro Power Plant on the Zambezi River and expansion of Hwange Power Station would only be complete well after the Zim-Asset target in 2018.

Addressing students taking Joint Command and Staff Course Number 27 at Zimbabwe Staff College in Harare yesterday, Minister Mavhaire said   “Zim-Asset is not the end of Zimbabwe”.

He was presenting a paper on the prospects and challenges towards developing energy capacity to meet the demands of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation.

“Is the nation going to have adequate power to implement programmes under the Zim-Asset?” he asked.

“I cannot answer this question with a resounding yes, as I will not be truthful to you. What I can say is the situation will have drastically improved by 2018.

“Staff officers, Zim-Asset is not the end of Zimbabwe, there will be life after Zim-Asset. We have already started planning for the period after Zim-Asset, with plans at an

advanced stage for the construction of Batoka Hydro Plant on the Zambezi River and expansion of Hwange Power Station.”

Zim-Asset, which is the Government’s economic blueprint guiding its policies from 2013 to 2018 identified energy as an enabler for achieving maximum output expected from beneficiation of the country’s resources.

Minister Mavhaire raised a cocktail of challenges which he said contributed to power outages over recent months.

“I want you to go out and explain to your relatives and friends that the major causes of what we are experiencing is because power projects are capital intensive, with even a small power generating plant requiring several hundred million dollars,” he said.

“Local funding is inadequate — we have to look for external loans. People are not paying their dues and sanctions led to non-procurement of critical spare parts.”

Minister Mavhaire also blamed vandalism of infrastructure and brain drain as contributory to erratic power supplies.

He said Zimbabwe was experiencing power shortages despite its vast resources that could be used to improve the situation.

Minister Mavhaire said the country had 12 billion tonnes of coal reserves and vast reserves of methane gas, capable of being used to generate electricity.

He said the country’s thermal power stations were operating below capacity because of illegal Western sanctions imposed on the country a decade ago.

Minister Mavhaire urged people to use renewable sources of energy such as solar power, while Government and experts explored wind turbine technology possibilities.

In the meantime, Minister Mavhaire said his ministry was instituting measures to improve electricity generation, such as licensing independent power producers.

Minister Mavhaire said Government was expanding two units at Kariba Power Station, with the first one expected to be commissioned in 2017.

When complete, Minister Mavhaire said, this would feed an additional 300 megawatts into the national grid.

He said they were also negotiating for more electricity imports depending on availability in the region.

Turning to fossil fuels, Minister Mavhaire said the state of the pipeline linking Beira in Mozambique and Msasa in Harare posed a major threat to uninterrupted supplies.

In this regard, he said, it was important to have a second pipeline.

When asked if he had voiced his concerns to Zanu-PF’s Politburo or Cabinet before Zim-Asset was adopted, Minister Mavhaire directed The Herald to make a written request for an interview through his   secretary.

China Africa to complete coal mine, 300MW power plant in 2016

China Africa to complete coal mine, 300MW power plant in 2016

via China Africa to complete coal mine, 300MW power plant in 2016 | The Source March 13, 2014

China Africa Sunlight Energy says it will complete its coal mine and a 300 megawatt power station at its concessions in Gwayi, Matabeleland North  by 2016, creating over 4,500 jobs.

Addressing delegates at a Parliament seminar on Thursday, the company’s deputy general manager Charles Mugari said as part of the first phase of the project, the company will build a modern residential complex for 2,000 workers, a coal mine and power plant.

“By 2016 we hope that the mine will be up and running,” he said, adding that the company was converting its special grant to a special mining right.

He said second phase of the power project will focus on methane gas extraction and another 300MW plant to be completed in mid-2017.

The company intends to establish another 400MW plant powered by methane gas.

China Africa is a 50/50 joint venture between Zimbabwe’s Old Stone Investments and Shandong Taishan Sunlight of China, plans to  spend $2.1 billion in the next five years on power generation, coal mining and methane bed gas extraction in  Matabeleland north.

“We have embarked on a very comprehensive exploration process  and by end of this year we will know exactly the minable reserves of methane gas,” he said.

Mugari said the projects, which would be carried out on 100,000 hectares of land would create 4,500 jobs in the next two years in a country where over 80 percent of the adult working population is unemployed.

The company is also planning to build  hotels and business complexes.

“This is going to be the beginning of the creation of an economic zone which will attract more foreign direct investment,” he said.

China Africa will also establish a coking plant for coal required in processing of steel.

Mugari said they had entered into a power purchasing agreement with Zimbabwe Electricity Distribution Company (ZETDC)  although tariffs were being finalised.

A transmission arrangement with the Zimbabwe Energy Regulatory Authority had also been agreed upon.

“We have also completed our environment impact assessment  for the mine and right now we are working on the EIA for the power generation and the documents are with the Environment Management Agency,” he said.

The company is also working with the water ministry to assist in the construction of the Gwayi-Shangani dam which it seeks to benefit from.

Mugari urged Parliament to come up with conducive legislation that encourages foreign direct investment and for government to harmonise its licencing regulations.

On Wednesday another company, Shangani Energy Exploration (SEE), said it has plans for $780 million gas project and build a 400 megawatt power station in the same area.

Zimbabwe hit by power cuts after fault at major plant

Zimbabwe hit by power cuts after fault at major plant

via Zimbabwe hit by power cuts after fault at major plant | Reuters Feb 27, 2014

Zimbabwe has been hit by severe electricity outages following a breakdown at a power plant that accounts for about half its national production, state utility ZESA said on Thursday.

Homes and businesses have suffered rolling blackouts, known as load-shedding, for up to eight hours in the last couple of days, paralysing industry and mining in the southern African country and damaging an already fragile economy.

“There will be an increase in load-shedding until the situation returns to normal,” ZESA said in a statement.

Hwange thermal power station in the northwest of the country, which produces 500-600 MW of power, had halted production due to a “fault that caused a malfunction,” it added.

Lack of fresh investment has left the former British colony relying on ageing plants and a worn out grid, resulting in frequent faults and blackouts.

Harare has licenced independent producers to complement ZESA’s output, but most of the projects are yet to take off because of concerns over investment laws that are compelling foreigners to transfer majority stakes to local blacks.

Zimbabwe produces 1,200 MW of electricity, most of it from Hwange and a hydropower station on the Kariba dam. It also imports 600 MW from Zambia, Mozambique and the Democratic Republic of the Congo to meet current demand. (Reporting By Cris Chinaka; Editing by Ed Cropley)

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