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Zim’s daily power generation drops

Zim’s daily power generation drops

Zimbabwe’s daily power generation has dropped to below 1 200 MW from about 1 400 MW that was being generated in recent months, statistics from the Zimbabwe Power Company (ZPC) show.

Zimbabwe is currently facing power shortages as national power demand at peak periods is estimated at 2 200MW.

Present generation capacity is far outweighed by demand, resulting in the shortfall being imported from regional power utilities.

According to the statistics as at 0730 hours on Friday, ZPC was generating 1 152 MW only.

Hwange Thermal Power Station sent out 547 MW and Kariba Hydro-Power Station 521 MW. The smaller thermal power stations Harare, Munyati and Bulawayo were generating 30 MW, 28 MW and 26 MW respectively.

ZPC said Unit 4 at Hwange which was taken out of service late last year for major overhaul works was contributing to some of the generation constraints being experienced.

“The revised return to service date (of Unit 4) is now 23 March 2013,” it said.

Meanwhile, ZPC managing director Noah Gwariro said ZPC was still working on securing funding for the re-powering of Bulawayo power station.

ZPC applied to the Indian government for funding of the Bulawayo project.

“Funding for this project is not restricted to the Indian Government only.

“We will accept other investors that are willing to partner with in the re-powering exercise,” he said.

The re-powering project for Bulawayo power station will take two years to complete, he said.

ZPC is targeting to produce over 9 799.06 GigaWatt-hours of electricity during 2015.

Due to the power deficit government, through ZPC, has embarked on several projects to increase power output through expanding existing power stations and building new ones.

For example, work is in progress to expand Kariba Power Station by an additional two units which will add a combined 300 megawatts to the national grid on completion in 2018.

Plans are also in place to add two units at Hwange 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. — New Ziana

Hwange Electricity Supply Company granted licence to generate power

Hwange Electricity Supply Company granted licence to generate power

 
 

THE Zimbabwe Electricity Regulatory Authority (Zera) has granted Hwange Electricity Supply Company a licence to construct, operate and maintain Hwange Power Station Stage III for the purpose of generating and supplying electricity to consumers in the region.

BUSINESS REPORTER

Zera chief executive officer Gloria Magombo in a statement yesterday said the licence allowed the company to supply electricity to any transmission, distribution or supply licencee who purchases electricity for resale and with the approval of authority to any consumer.

“Generation licence No GC0032 issued in terms of Section 4 (e) of the Energy Regulatory Authority Act Chapter 13:23 of 2011 as read with section 42 of the Electricity Act Chapter 13:19 Act no.4 of 2002 hereinafter referred to as “the Act”

“The conduct of the above –named licencee under this licensee under this license is subjected to the conditions as outlined below or later revisions to these conditions as are approved by the Zera hereinafter referred to as the authority, the terms as set out in section 47 of the Act and any other amendments to the relevant legislation,” Magombo said.

According to Zera’s recently published annual report for 2013, the authority said it received applications and licenced two independent power producers in an effort to bridge the gap between supply and demand. Zera said the producers — Hytoric Enterprises t/a Southern Energy with a capacity of 600 megawatts (MW) and Kupinga Renewable Energy with a capacity of 1,5 MW — had a combined output of 601,5MW.

Zera said it had reviewed the licence for China Africa Sunlight Energy Company from 400MW to 600MW.

The country has been battling intermittent power shortages as demand continued to exceed supply with Zesa currently generating about half of the national requirement of 2 200MW. This has led to increased load shedding.

According to Zera, the Kariba Hydro Power Station plant situated along Zambezi River generated an average of 569 MW while Hwange Power Station, a coal fired plant produced an average of 436MW in the past year.

Zera said the other small thermal power stations contributed a total of about 58MW with Harare Power Station contributing 16MW, Bulawayo Power Station 20MW and Munyati Power Station 22MW against a combined dependable capacity of 100MW.
According to Zera the country’s operational IPPs have an installed capacity of 102MW which are largely co-generation and small hydro technologies and these are Triangle, Hippo Valley, Chisumbanje, Border Timbers and Nyangani Renewable Energy.

Govt updating Batoka feasibility study

Govt updating Batoka feasibility study

Bus2Tinashe Makichi  Business Reporter
Government is updating an engineering feasibility study for the Batoka hydro-power project as efforts get underway to see if the project has potential to generate more than the initially projected 1 650 megawatts.The World Bank availed a $6 million grant early last year for feasibility studies to be undertaken before the construction of the project could commence.

On the basis of the World Bank grant, consultants have been appointed and the review of the feasibility study was given to an Italian company while the environmental and social impact study was awarded to a South African company.

The findings so far by the Italian firm revealed that the mega hydro project can produce more power as previously anticipated.

Zimbabwe Energy Regulatory Authority chief executive Engineer Gloria Magombo yesterday confirmed the development and said some progress has been made on the project.

“The feasibility is currently ongoing with the assistance from World Bank so that the project becomes bankable,” said Engineer Magombo.
Zambezi River Authority yesterday told The Herald Business that according to the work plan the engineering feasibility study will be complete by August this year while the EIA is scheduled for completion in May this year.

ZRA is expected to work in consultation with ZESCA in Zambia and Zimbabwe Power Company in Zimbabwe on the project implementation.

Both companies doing the studies have since started their work and the Italian company has proven to be most advanced as they have already indicated how much power is likely to be produced given the advancements in designing and technology.

This is exciting news to Government because hydro-power is cheaper than thermal and certainly many times cheaper than solar.

The proposed hydro-electric scheme is located on the Zambezi River, about 54km downstream of the Victoria Falls, across the boundary between Zambia and Zimbabwe. It involves the construction of a dam and a hydro-power plant on the Zambezi River.

So far the ZRA short-listed six international transaction advisors for the construction of a 1 600 megawatt hydropower plant to the tune of $6 billion at the Batoka Gorge along the Zambezi River near Victoria Falls

If completed, the project would increase generation capacity and reduce reliance on electricity imports and Initial studies have shown that the Batoka hydro scheme would turn Zimbabwe into a regional net exporter of power.

The project would also improve the generation mix which is currently skewed in favour of coal-fired plants. The Batoka hydro concept was conceived in 1972 out of a study instituted by the predecessor of Zambezi River Authority, the Central African Power Corporation.

Last year, Energy and Power Permanent Secretary Patson Mbiriri said it was necessary to review the Batoka power project feasibility study.

Mr Mbiriri said if Government can maximise on particular utilities and get the maximum out of it then of course it will end up with more power in terms of hydro-power.

He said once both studies have been reviewed approaches will now be made and bids will be submitted to the short-listed companies to go through them.

The Batoka hydro scheme is among Zimbabwe’s long-term plans to deal with the prevailing power deficit in the region.

Plans for the project were initially mooted in 1993, but the Zambian government was reluctant because of the outstanding debts which it wanted Zimbabwe to clear first.

However, the Zimbabwe Government agreed to pay off more than $70 million it owes Zambia for the sale of the Central African Power Corporation assets which were jointly owned by the two countries thereby proving green light for the project to take off.

Sino-Zim power deals take off

Sino-Zim power deals take off

Kariba-DamFelex Share and Lloyd Gumbo
Mega power deals sealed by President Mugabe in China last year have taken off, with construction already underway at key projects expected to add 1 500 megawatts to the national grid.

The projects are Kariba South Hydro Power Station (300MW), Hwange Thermal Power Station expansion (600MW) and construction of the Gwayi-Shangani Thermal Power Station (600MW), all scheduled for completion by 2018.

China Exim Bank recently released $80 million advance payment to Sinohydro for the expansion of Kariba South Hydro Power Station.

As a result, manufacturing of turbines and generators for the $533 million project has started in China.

Sinohydro was also contracted to expand Hwange Thermal Power Station at a cost of $1,1 billion.

It is this month mobilising on site to do “pre-commencement works” while Government officials are soon expected to leave for China to finalise funding for the project.

China Africa Sunlight Energy (CASECO), which won the bid to construct the $2 billion Gwayi-Shangani Thermal Power Station, has completed clearance work on site, with actual construction expected to commence in July.

An official at Sinohydro who spoke on condition of anonymity said construction work was now at full throttle following the release of funds by China Exim Bank.

“The project is now at full throttle because the manufacturer has started manufacturing turbines and generators in China after that money was released,” he said.

“We are also using part of the money on the Zimbabwean side to buy some of the material here and set up. We are at the moment working on tunnels excavation and we have already achieved 300 metres for the longest tunnel while the other four tunnels are still under excavation. On the working site, we have about 70 Chinese engineers and about 400 local technicians and labourers.”

The projects are expected to have multiple benefits that encompass job creation in line with the Zimbabwe Agenda for Sustainable Socio Economic Transformation.

Zimbabwe Power Company managing director Engineer Noah Gwariro said the contractor was mobilising on -site to do initial works.

He said a team from the Ministry of Finance and Economic Development and ZPC would soon be dispatched to China to finalise funding.

“The contractor is moving on site this month to have pre-commencement work, that is, things like ground and soils have to be tested. This will lay the foundation for them to do a detailed design lay out.

“We are talking to China Exim Bank and we have provided them with the information they need. If all goes well a team will be in China soon because what is now left is for the Minister of Finance to sign for the loan for that contract.”

CASECO deputy general manager Retired Colonel Charles Mugari said clearance of the concession at Gwayi was complete, paving way for construction of a magazine plant for explosives storage.

“In the meantime, we have doubled our efforts to finalise the financial closure because we have been to ZERA (Zimbabwe Energy Regulatory Authority) where they gave us a rate that we can work with,” said Rtd Col Mugari.

“All things being equal by March this year we should start sinking mine shafts while at the same time hope that by July we can start construction of the power station.

“Our general manager is already in China negotiating with various financial institutions.”

CASECO executive board secretary Mr Isaac Chihuri added that all was on course for the first mega independent power producer to kickstart work on the ground.

“As we speak, parties are negotiating with Sinosure (China Export and Credit Insurance Corporation) to ensure quick financial closure. But Industrial and Commercial Bank of China has already been identified as a major conduit to the financing of the project.

“We will be sending a delegation to China soon to discuss security measures with Sinosure. The power project will commence as soon as financial closure is achieved,” said Mr Chihuri.

The integrated Gwayi-Shangani project will see the company extract coal, construct a 600MW thermal power station and install a power transmission line.

To end the chronic power shortages, Zimbabwe is working on a host of public and private expansion projects, chief among them Kariba and Hwange.

The Sadc region faces serious power shortages between now and 2018 due to lack of investment and implementation of regional power projects.

Zimbabwe generates about 1 300 megawatts against a peak demand of 2 200 MW.

Zesa blames heavy rains for power cuts

Zesa blames heavy rains for power cuts

THE Zimbabwe Electricity Supply Authority (Zesa) has blamed heavy rains that hit most of the country for the latest spate of power outages, saying it has experienced a number of faults due to wet weather.

PRIVILEGE SHOKO/
MELODY CHIMHAU

In a statement yesterday, the power utility said lightning strikes and falling trees were adversely affecting normal power distribution.

“Lightning strikes and falling trees on overhead distribution networks are causing malfunctions of some electrical equipment and water seeping into underground cables is causing short circuiting,” the statement reads.

Zesa warned consumers against attempting to repair electrical faults or interfering with electricity infrastructure, as this might lead to serious injury or electrocution.

“Consumers should contact Zimbabwe Electricity Transmission and Distribution Company personnel to attend to faults and should not interpret all power outages as load-shedding,” the company warned.

Zesa said it was working flat out to fix the faults and restore services at the earliest possible times to minimise inconveniences.

“Some faults may take longer to rectify than is normally the case,” the utility said.

“Inconveniences being caused by the high prevalence rate of faults are sincerely regretted.”

Heavy rains presently being experienced in the country have reportedly claimed lives and caused mayhem, destroying settlements and leaving a trail of destruction. Road infrastructure has been affected, with some roads becoming slippery and access to some areas hampered.

The Meteorological Services Department has forecast heavy rains next week with the ground already saturated and dams overflowing.

Rains are expected to worsen the already bad situation and may cause flash flooding.

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

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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.

 

 

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