Commercial Farmers Union of Zimbabwe

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ZESA

Chinese firm scales up Zim power project

Chinese firm scales up Zim power project

HARARE - China Africa Sunlight Energy Limited (CASE) says it is now considering building a 600 megawatt (MW) thermal power plant in the northern part of Zimbabwe from the initially planned 120 MW.

The Asian group, intending to invest approximately $2,1 billion in the southern African country’s energy sector, has since engaged the Zimbabwe Energy Regulatory Authority (Zera) on their plans to build a bigger plant after concluding exploration activities in Gwayi.

“CASE is seeking to amend the licence to an increased generating capacity of 2x300MW,” said the company in a statement yesterday.

The application for amendment of the licence by CASE is done and is terms of sub-section (1) (b) of section 49 of the Electricity Act (Chapter 13: 19) of 2002.

CASE — a joint venture between Old Stone Investments of Zimbabwe and Shandong Taishan Sunlight — recently indicated plans to invest as much as $2,1 billion to develop coal mines and build a 2 100 MW coal fired power station in Zimbabwe.

The energy firm said it will start with capacity to produce 300 MW by mid-2015 and raise this to 600 MW by the end of that year.

CASE has spent $20 million on exploration, and was granted rights to look for coal and coal-bed methane in the area in October 2012.

The southern African nation has a huge power deficit, and imports 35 percent of its national requirements from its neighbours.

Due to lack of funds, and a general power deficit in southern Africa, the country experiences constraints with imported power, resulting in electricity rationing to consumers. Zimbabwe domestically generates around 1 200 MW, against a 2 100 MW demand.

The country has coal resources of 10 billion to 15 billion tonnes, according to government estimates.

CASE, which recently received a certificate to carry out a full Environmental Impact Assessment for the construction of a power generation plant, plans to sell some of its electricity to Zesa, the State-owned power-generation company.

Its coal exploration area, in Gwayi in the western Matabeleland region, has four billion tonnes of resources and CASE is conducting studies to measure how much gas is available, with the results to be known in three months.

“If they discover gas, the way we think they are going to, we want to export the gas overseas to India in partnership with Discovery Investments,” said Charles Mugari,  CASE’s general manager.

Mugari noted that depending on the outcome of the gas study, the company wants to start a programme piloting methane gas for domestic gas in Hwange, also in Matabeleland, and extend this to Bulawayo, the second-biggest city, if successful.

“CASE is looking at the possibility of pumping gas to the port city of Beira in neighbouring Mozambique, using an idle pipeline that the National Oil Company of Zimbabwe once used to bring fuel into the country,” he said.

ZESA bows down to political pressure on debt relief

ZESA bows down to political pressure on debt relief

via ZESA bows down to political pressure on debt relief | SW Radio Africa by Nomalanga Moyo 11 September 2013

The Zimbabwe Electricity Supply Authority has finally bowed down to political pressure and cancelled utility debts amounting to $170 million. The power utility company is owed in excess of $600 million by ratepayers.

But according to a statement issued Tuesday, ZESA will be writing off $80 million from the total debt owed by the farming community.

For domestic users $90 million will be taken off their combined bill, which translates to $160 per household, according to the figures given by ZESA.

ZESA said: “The debt relief to customers was devised after extensive consultations with farmers’ representatives and other stakeholders as a way of contributing to the general economic recovery and success of the agrarian reform in anticipation of the new planting season.”

The energy supplier said the adjustments will be reflected on customers’ October bills, with prepaid meter customers getting electricity units equivalent to $160.

However, ratepayers are not convinced this move is for their benefit.

Combined Harare Residents association chairperson Simbarashe Moyo said it was clear that this was a political move meant to benefit politicians.

“We are surprised by what the government is doing. First it was water bills, now electricity. This is happening at a time when residents have been contributing significantly to the reduction of their debts to ZESA through a plan that is already in place.

“For us the benefit to residents is nothing compared to what the politicians, farmers and businesses stand to gain. These are the people who since 2000 have been consuming electricity without paying and owe ZESA huge amounts,” Moyo said.

Moyo further criticised politicians for sending out a wrong message through the debt relief schemes: “What this essentially tells ratepayers is that if you don’t pay and five years lapse you can have your bill written off by politicians.”

Moyo said residents were also concerned that as a result of the debt cancellation measure, ZESA may fail to service its own debt to energy suppliers such as Eskom of South Africa.

“We will be hoping that the government has also put in place plans to take care of what ZESA owes its own suppliers as well as banks – otherwise this is a recipe for disaster which will see 24-hour blackouts,” he added.

On Wednesday morning, Harare’s central business district was without electricity.

Last month outgoing Energy Minister Elton Mangoma warned that ZESA would be thrown into financial difficulties if the forced debt relief, driven by ZANU PF deputy leader Joice Mujuru, went ahead.

Mangoma said ZESA was running a breakeven tariff regime, and unless ZESA gets paid for services rendered, it will collapse.

Even before ZESA announced the debt relief, reports suggest that it was already experiencing cash-flow problems as ratepayers withheld payments in anticipation of the government directive.

SW Radio Africa correspondent Simon Muchemwa said despite ZANU PF spinning the debt relief as a philanthropic move aimed at the majority of struggling Zimbabweans, it was party loyalists and senior officials who were the winners.

“They are the real beneficiaries as they own most of these farms and businesses,” Muchemwa said.

Zesa warns of more load shedding

Zesa warns of more load shedding

via Zesa warns of more load shedding | The Herald by Innocent Ruwende

ZESA Holdings has warned Zimbabweans to brace for increased load shedding outside the published schedule as the Hydro Cabora Bassa (HCB) is undertaking maintenance on its plant.In a statement yesterday, Zesa said during this period, a total of about 250MW will be lost to the national grid as imports decrease from 300MW to around 50MW

“The Hydro Cahorra Bassa (HCB) is undertaking maintenance on its plant from the 31st of August 2013 to the 9th of September 2013.

“Customers are also advised that the Zimbabwe Power Company (ZPC) will also be undertaking statutory maintenance this summer from the 9th of September 2013, and this will lead to a decline in local generation output,” read the statement.

The authority said efforts were being made to alleviate the situation by way of imports where available.

“Customers will be updated of developments as the maintenance progresses, and in the meantime, are urged to use the available electricity very sparingly to minimise the effects and extent of load shedding.”

Last year Zesa Holdings paid US$10 million debt to Hydro Cabora Bassa and the Mozambican company agreed to ensure uninterrupted power supply if Zimbabwe reduced its debt to below US$40 million.

Zimbabwe requires about 2 200 megawatts daily, but generates only 1 300MW.

China-backed firm plans 600 MW Zimbabwe electricity plant

China-backed firm plans 600 MW Zimbabwe electricity plant

via China-backed firm plans 600 MW Zimbabwe electricity plant – Times LIVE

Chinese-backed China Africa Sunlight Energy said it will begin work early next year on a 600 MW coal-fired electricity plant in western Zimbabwe, part of $2 billion of energy projects in the power-starved southern African country.

The company, a 50-50 joint venture between China’s Shandong Taishan Sunlight and locally owned Old Stone Investments, has concluded coal exploration in Gwayi, near Zimbabwe’s second city of Bulawayo, and mining will start in November.

Charles Mugari, general manager of China Africa Sunlight Energy, told Reuters on Wednesday the company had discovered 4 billion tonnes of coal reserves after exploration and would mine at a rate of 2.5 million tonnes a year.

“Early next year we will start the construction of the 600 megawatt power station and hope that by mid-2015 the first plant of 300 megawatt will be running,” Mugari said, adding the final 300 MW plant would be commissioned at the end of 2015.

Zimbabwe has a peak electricity demand of 2 100 MW but is able to produce only 1 200 MW, with another 300 MW coming from imports, mainly from neighbouring Mozambique.

The country’s state power company ZESA warned consumers on Wednesday that electricity cuts would deepen as imports will fall to 50 MW from next week, when Mozambique’s Hydro Cahorra Bassa plant starts annual maintenance.

ZESA will also start maintenance of its local generating plants next week, worsening the electricity shortages.

China is speeding ahead with projects worth tens of billions of dollars to electrify Africa.

Mugari said his company was also exploring for methane gas in Gwayi, which it would use for domestic consumption and electricity generation.

Nation to Grapple With Power Cuts for the Next Five Years

Nation to Grapple With Power Cuts for the Next Five Years

via AllAfrica.com – Zimbabwe: Nation to Grapple With Power Cuts for the Next Five Years

ZIMBABWEANS will have to grapple with power cuts for the next five years, until the country completes new generation projects subject to availability of funding, the power generating parastatal said last week.

This comes at a time the power utility, Zesa, has intensified load-shedding as generation capacity is way behind the rising demand, knocking off the wheels of industrial revival.

In an update last week, Zesa’s subsidiary, the Zimbabwe Power Company (ZPC), said the current total generation capacity of 1 530MW was inadequate to meet a demand of around 2 200MW.

ZPC generates electricity at its five power stations located in Kariba, Hwange, Munyati, Bulawayo and Hwange. The quintet has a combined installed capacity of 1 960MW. ZPC said the power generation gap could be closed by new projects, which can only be completed in four years’ time, once funding has been secured. The power utility has been closing the gap through load-shedding and imports from regional utilities.

“However, because of severe electricity shortages in the region, we cannot import more and ZPC power output will only increase after the generation expansion projects have been completed by 2018 subject to availability of funding,” it said.

ZPC said it was facing challenges in raising adequate capital needed to maintain the existing plant, as well as building more capacity. ZPC said it was working on electricity generation projects to close the gap between demand and supply, through ensuring that the existing plants operate at installed capacities and expanding Kariba and Hwange power stations to add 900MW.

Only the hydro project at Kariba is operating at installed capacity. Hwange Power Station is operating at 70% of its capacity. The situation is dire for the smaller thermal stations in Munyati, Bulawayo and Harare whose capacities range from 20% to 33%.

The expansion of Hwange and Kariba will cost an upward of US$1,6 billion.

In December, ZPC and Chinese firm, Sino Hydro, signed a contract for the engineering, procurement and construction of two units of 150MW each at Kariba South Power Station. The cost is US$354 million.

“Financial closure is expected to be reached by the end of September and the construction period of the project from the date of commencement is approximately 40 months,” ZPC said.

It said, the addition of two units at Hwange Power Station would generate 600MW, adding that construction would take four years from the date of financial closure.

Next step: Batoka Dam

Next step: Batoka Dam

via VictoriaFalls24 – Next step: Batoka Dam

Zimbabwe pays US$40M Kariba debt, paving way for Batoka Dam

The Zimbabwe Government has paid US$40 million towards its Federation-era power debt to Zambia, paving the way for construction of the Batoka Gorge hydro power station. The payment was made through power utility ZESA, which is wholly-owned by government.

The debt was for the shared cost of the Kariba Dam construction and the associated infrastructure. It also included proceeds of the sale of assets belonging to Central African Power Corporation (CAPCO), a power firm jointly owned by the two countries as members of the Federation of Rhodesia and Nyasaland which was dissolved in 1963. CAPCO was running the Kariba power project for the two countries but was disbanded in 1987.

ZESA spokesperson, Fullard Gwasira, confirmed the development last week saying the debt payment would help pave the way towards the construction of the Batoka Gorge hydro power station. He also indicated that the debt balance would be paid within the next seven months.

“We have already paid US$40 million to Zambia as part settlement of the US$70,8 million debt,” Gwasira said. “The balance will be cleared on or before March 2014 as we have total commitment to our side of the bargain to ensure that we have a clean bill with our Zambian counterparts. ZESA Holdings has rendered its cooperation to its Zambian counterparts, a move that will go a long way to ensure the smooth execution of the Batoka Hydro power project to achieve security of electricity supply.”

Zimbabwe and Zambia last year signed a Memorandum of Understanding (MoU) to jointly construct the Batoka hydro electric project with each country expected to get 800MW of electricity from the project, a development which would help boost power supply in the two countries.

The agreement on the project, situated about 50km downstream of Victoria Falls on the Zambezi River, was however dependent on Zimbabwe’s commitment to pay off the debt it owed Zambia over CAPCO.

The Batoka project, estimated to cost about US$3 billion is expected to be built and operated by a private company for a period of years before transferring ownership to the two states.

Fast facts about Kariba Debt:

- Zimbabwe Government paid money towards its Federation-era power debt to Zambia US$40 million

- Remaining debt US$30,8 million

- Looking to clear the rest of the debt by March 2014

Batoka Hydro Electric Project: 800MW of electricity

Batoka Gorge Project location: 50km downstream from Victoria Falls

Cost of Batoka Project: US$3 billion

Recently the State Procurement Board awarded tenders to China Machinery Engineering Company and Sino Hydro Corporation to expand Hwange and Kariba power stations respectively. The expansion of Hwange will see the additional of two units with a combined generation capacity of 600MW while the expansion of Kariba Power station will add 300MW of electricity to the national grid. Zimbabwe has also embarked on the refurbishment of its power stations to boost generation capacity.

From: vicfallsbitsnblogs.blogspot.com

By: Pete Roberts

 

Registration of standby +100KVA generators

Registration of standby +100KVA generators

Zimbabwe Energy Regulatory Authority (ZERA) advises as follows:

Registration is free. However, inspection of the generator costs US50.00 (see page 703 of the attached Instrument - not)

·         Theregulation is governed by Statutory Instrument 103 of 2008 (attached - not)

·         The purpose of the registration is to establish a database of the generators to facilitate for safety compliance checks which will follow.

Should you need any further clarification, do not hesitate to contact us. Attached are the application forms.

See also the attached advertisement.

 

Kind regards

 

 

Gladman Njanji | COMMUNICATIONS OFFICER

 

cid:image001.jpg@01CE02CA.32B539B0

 

45 Samora Machel Ave, 14th Floor, Century Towers, Harare, Zimbabwe
Tel +263 4 780 010 | Mobile +263 716 800 249; 0772 405 301 | Fax +263 4 250 696

E-Mail:  This email address is being protected from spambots. You need JavaScript enabled to view it.   | Skype: gnjanji | Web: www.zera.co.zw  

 

 

Promoting value and growth

ZESA seeks partners for US$90m project

ZESA seeks partners for US$90m project

http://www.newzimbabwe.com/

26/06/2013 00:00:00
     by NewZiana

THE Zimbabwe Power Company (ZPC), a wholly owned subsidiary of Zesa 
Holdings, has said it is in talks with investors to fund the construction of 
the Gairezi Mini Hydro-electric power station.

The project, to be located on the Gairezi River in Nyanga in Manicaland 
Province, will involve the construction of a power station with a projected 
capacity of 30 megawatts (MW).

It envisages harnessing the hydro-power potential of the river by 
constructing a diversified dam across Gairezi River. A feasibility study has 
been concluded and it is projected that about US$90 million will be required 
to complete the project.

ZPC chairman Victor Gapare told New Ziana Tuesday: "Funding for the project 
has not yet been secured, but we are engaging potential investors. We will 
advise when we reach financial closure."

Sources at the power company say Chinese and Indian firms are being targeted 
to fund the project.
Once funding is secured, the project is expected to take approximately 36 
months to complete the engineering phase, which involves generation 
specifications, tendering for engineering, procurement and construction 
contractor and conducting an Environmental Impact Assessment (EIA).

Gapare said the EIA for the project was nearing conclusion.

"The EIA is being finalised and the next stage is to carry out a 
geo-technical survey of the area," he said.

ZPC has appointed Ascon Africa Environmental Consultants to conduct the EIA.

Gapare said work at the project site was expected to start in 2014.
The country is experiencing huge power deficits which have impacted 
negatively on industrial performance with the country generating an average 
of about 1,200 MW out of a national requirement of around 2,200 MW.

NamPower in the dark over Zesa deal

NamPower in the dark over Zesa deal

http://nehandaradio.com/

on May 24, 2013 at 8:36 pm

By Nyasha Francis Nyaungwa

WINDHOEK – Confusion surrounds the extension of the controversial power 
purchase agreement between NamPower and Zimbabwean power utility, ZESA.

NamPower MD, Paulinus Shilamba announced this week that a 2007 power 
purchase agreement signed between the two power utilities which was coming 
to an end in October this year, has been extended by another year to the end 
of 2014.

Shilamba’s announcement come days after the Zimbabwean Energy minister, 
Elton Mangoma was quoted in a Zimbabwean weekly, the Independent saying the 
agreement, which was initially scheduled to end last year, will be 
terminated in October this year and will reduce that country’s power deficit 
understood to be around 800MW.

Mangoma was quoted as saying: “The power purchase agreement is for 150MW so 
you can see it’s a lot of power which when that contract terminates we will 
be able to have another 100 to 150MW supplied to the country.

“What they (NamPower) have done is to ask us to sign a power purchase 
agreement which is a lot more than the amount that they have given us. For 
instance, we have got a contract that says we should be able to export power 
which sometimes is in the region of US$4 to US$5 million a month to them.

“As you can see if we were just repaying with electricity we could have just 
taken ten months or one year and finished it, but they instead actually pay 
us for that electricity or a portion of it until the end of the power 
purchase agreement which is in October.”

Briefing journalists on the electricity supply situation in the country on 
Tuesday, the NamPower MD declined to give details of the new deal citing 
confidentiality agreements between the two parties.

In 2007 NamPower entered into a power purchase agreement with Zimbabwean 
power utility in which NamPower injected US$40 million into the 
rehabilitation of the Hwange thermal power station in return for 150 
megawatts of power for five years.

An outcry in both countries over the rationality of the agreement had 
threatened the agreement and any future renewals.

In fact in 2010, the then Zimbabwean Energy Minister, Elias Mudzuri said 
that Zimbabwe should stop exporting electricity to Namibia until the Hwange 
Power Station was producing enough electricity. Namibia Economist

Ten years in jail for stealing Zesa transformer oil

Ten years in jail for stealing Zesa transformer oil

http://www.thestandard.co.zw

May 19, 2013 in Local, News

CHIPINGE — Two notorious oil dealers, who have been wreaking havoc in and 
around Chipinge draining electricity transformer oil, finally met their fate 
last week when they were jailed for an effective 10 years.

REPORT BY OUR CORRESPONDENT

The duo, Michael Mudzamiri and Phillip Mandizvidza appeared before Chipinge 
magistrate Makamera Waini facing charges of contravening Section 6 of the 
Electricity Act.

The State led by prosecutor Thembalami Dhliwayo heard that on April 2, the 
two drained 110 litres of oil from a Zesa 33kv transformer near Gaza in 
Chipinge. This act resulted in a major power blackout in the area on the day 
in question.

Testifying in court, police detective constable Fanuel Nyamutsa, told the 
court that the accused persons voluntarily led them to the transformer and 
even demonstrated how they drained the oil.

He further revealed that the accused showed them the other five 
transformers, which they successfully drained without being apprehended by 
the police. However, in their defence both the accused persons denied the 
charges and told the court that they admitted to the offence after police 
officers assaulted them.

But magistrate, Waini, threw away their defence saying no medical report was 
ever produced as evidence to buttress their allegations and convicted the 
two due to overwhelming evidence.

Vandalism of Zesa equipment is on the surge in Manicaland province.

This has been attributed to the high unemployment rate in the country and 
high demand of copper cables in neighbouring countries such as Mozambique 
and South Africa where prices are reported to be lucrative.

Zimbabwe to pay off Nampower $40m debt

Zimbabwe to pay off Nampower $40m debt

http://www.theindependent.co.zw/

May 17, 2013 in Business

ZIMBABWE is expected to have more than 100 megawatts (MW) additional power 
on its supply grid by November this year after Zesa Holdings (Zesa) has 
expunged a US$40 million debt owed to Namibian state-owned electricity 
company NamPower, Energy minister Elton Mangoma said.

Report by Taurai Mangudhla

The US$40 million is in respect of a February 2007 deal in which NamPower 
gave Zesa a loan to refurbish its Hwange Thermal Power Station.

Zesa was to repay the debt by exporting 100MW during peak periods and 150MW 
off peak to Namibia daily for five years given Zimbabwe’s then 
hyperinflationary environment and lack of foreign currency.

“The power purchase agreement is for 150MW so you can see it’s a lot of 
power which when that contract terminates we will be able to have another 
100 to 150MW supplied to the country,” Mangoma said.
The 150MW is expected to reduce the country’s power deficit which currently 
stands around 800MW.

Mangoma said Zesa was currently supplying NamPower with electricity worth 
between US$4 to US$5 million each month.

“What they have done is to ask us to sign a power purchase agreement which 
is a lot more than the amount that they have given us, for instance, we have 
got a contract that says we should be able to export power which sometimes 
is in the region of US$4 to US$5 million a month to them,” he said.

“As you can see if we were just repaying with electricity we could have just 
taken ten months or one year and finished it, but they instead actually pay 
us for that electricity or a portion of it until the end of the power 
purchase agreement which is in October.”

Zimbabwe’s power purchase agreement with Namibia was expected to be fully 
met last year, but it was extended for another year after the country failed 
to honour the agreement on account of persistent power generation 
challenges.

In September last year, Mangoma announced Zimbabwe would continue supplying 
Namibia with electricity until it clears the debt.

Mangoma statement on power generation

Mangoma statement on power generation

http://nehandaradio.com/

on May 4, 2013 at 6:38 am

Press statement by Elton Mangoma, the Minister of Energy and Power 
Development on initiatives to boost the power situation

In view of the current challenges besetting the efficient supply of power 
nationwide and the need to enhance the financial position of the electricity 
utilities, the Ministry of Energy and Power Development has come up with a 
number strategies to mitigate the power situation in the country.

The measures being taken are divided into Generation capacity and supply 
side activities, Demand Side Management and Institutional changes. The 
supply side is further split into short, medium and long term measures.

The strategies include;

STATUS OF GENERATION

The generation capacity of the Hwange Power Station has improved 
significantly with an average of five units (580MW). This has allowed the 
Zimbabwe Power Company (ZPC) to carry out upgrade works and preventive 
maintenance at the Kariba Power Station without causing major power 
shortfall to the system. The Kariba Power Station has continued to maintain 
a steady power generation.

PREPAYMENT METERS

The smart/prepayment metering is a valuable short term strategy which seeks 
to improve revenue collection by the utility and influence behaviour change 
on how consumers use electricity. The system also assists ZETDC to recover 
accrued debts by deducting 20 percent on every electricity purchase going 
towards servicing the debt, among other benefits.

As of yesterday, a total of 150 000 prepayment meters had been installed for 
both domestic and commercial users. Government issued a Statutory Instrument 
44A on Electricity (unpaid bills, prepaid meters and smart meters) 
regulations, 2013 which aims, among other things, to speed up the 
implementation of the prepaid/ smart metering programme.

The Statutory Instrument compels all electricity consumers to purchase and 
install smart meters with the exception of high density customers, rural 
customers and light load agricultural customers. The Statutory Instrument 
also deals with outstanding bills on the date on which the prepaid meter is 
installed as these will be transferred to the property at which the prepaid 
meter is installed.

In order to ensure efficiency, ZETDC this week commissioned a new Vending 
Platform supplied by Itron of South Africa. The new Platform can accommodate 
both smart and prepaid meters.

Medium Term Power Generation

• KARIBA SOUTH EXPANSION – The Zimbabwe Power Company (ZPC) and Sinohydro 
have concluded negotiations for the 300MW Kariba South Expansion Project. As 
a result, Sinohydro has commenced work at the site.

• HWANGE POWER STATION – adjudication process for the 600MW Hwange Expansion 
Project has been completed and the project was awarded to CMEC. Work is 
expected to commence before the end of the year.

• 84MW DIESEL GENERATOR – A diesel plant (84MW) that has operated for 
100hours has been identified at a capital cost of €37 million. This about 
50% of the cost of new plant. The ZPC has made a technical analysis and that 
diesel generators are suitable for our system and have the capacity of 
reducing load shedding by 80MW.

• 30 MW GAIREZI SMALL HYDRO POWER PLANT – The project is now at design stage 
following completion of feasibility studies and official launch is expected 
this month.

• 500MW CBM POWER STATION- ZPC has also floated a tender for resource 
mapping of coal bed methane. The tender was awarded to WAPCOS of India and 
it is ready to carry out the work. However, ZPC is awaiting CBM special 
grants documentation from the Ministry of Mines and Mining Development.

Instead there are two grants awarded to one company Shangani Energy and 
another to China Africa Sunlight by the mines ministry. The grants are 
overlapping with the desired ZPC concession area. These concessions were 
granted after Cabinet granted ZPC concession but the Mines and Mining 
Development ministry is refusing to effect Cabinet decision.

• 1000MW WESTERN AREA POWER STATION – China Railway International (CRI) and 
China International Fund (CFI) have signed a Memoranda of Understanding 
(MoUs) with the government to develop a 1000MW thermal plants.

China Railway International came for site investigation in December 2012 and 
has submitted a draft contract for the project development. The finalisation 
of reinstating the Western Area coal concession to the ZPC by the Ministry 
of Mines is important. Again the Ministry of Mines and Mining Development is 
not cooperating, causing a delay in the commencement of this project.

• 100MW ON-GRID SOLAR POWER – Some suitable sites for the 100MW solar power 
plant are being identified. The ZPC has engaged the Plumtree Town Council 
for land to construct the power station. A tender for the 100MW power plant 
is expected to be floated soon. The tender will cover BOT, IPP, PPP and pure 
debt basis.

LONG TERM PROJECTS

• THE BATOKA HYDRO ELECTRIC POWER PROJECT –Zambia and Zimbabwe have agreed 
to undertake this project on a BOT basis. This was after Zimbabwe agreed to 
honour the EXCAPCO assets debt of $70.8 million. So far a total of US$40 
million has been paid towards the US$70, 8 million. The Zambezi River 
Authority called for Expressions of Interest to develop the Batoka on a 
Build Operate and Transfer basis. The response was extremely good -25 
companies showed interest and the majority from credible international 
organisations.

• THE GREAT INGA HYDRO PROJECT – is proposed on the Congo River in the DRC. 
This can produce around 100 000MW. This project is too big for the DRC and 
requires a regional approach. If this is constructed it will change the 
economic fortunes of the region. Hydro power is cheap and it is worth the 
time spent on promoting it.

INSTITUTIONAL CHANGES

• RESTRUCTURING OF THE POWER SECTOR – The restructuring of ZESA Holdings has 
been approved by Cabinet. This is to make ZESA more efficient and responsive 
to the consumers, whilst at the same time, setting up a mechanism to make it 
easy for Independent Power Producers to have a level playing field.

These developments will result in the following.

• ZESA Holdings be collapsed into a National Grid Services Company (NGSC) 
and move all the legacy debts to this company. It will be 100% Government 
owned and it will not be privatised. NGSC will be responsible for 
Transmission, Market and Systems Operation. It will have the “reserve 
 supply” responsibility.

• ZETDC will transfer the transmission functions to NGSC and transform to 
Zimbabwe Distribution Company (ZEDC) and be responsible for Distribution of 
Electricity.

• SUMMARY – Measures to consolidate the power availability and reliability 
will continue. Such measures will include taking out plant for preventive 
routine maintenance and equipment upgrade. Negotiations for firm power 
imports from the region will be pursued by both Government and the power 
utility.

The implementation of all power projects continue to be a critical success 
factor for securing self-sufficiency and reliability in power supply to the 
nation. To this end the Ministry is continuously evaluating project risks 
and working on mitigatory measures to ensure the projects are realised.

Zesa smart meters set to reduce load-shedding

Zesa smart meters set to reduce load-shedding

http://www.thestandard.co.zw

April 28, 2013 in Business

THE Zimbabwe National Chamber of Commerce (ZNCC) has partnered with the 
Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and a 
local company to roll out smart meter technology expected to reduce 
load-shedding in the commercial sector.

Report by Ndamu Sandu

The move comes at a time generation capacity is unable to meet demand 
resulting in power blackouts.

A smart meter refers to an electrical gadget which records sales of 
electricity and allows a two-way communication line between the consumer and 
supplier of electricity.

The partnership has roped in Echelon, one of the world’s biggest suppliers 
of smart meters. Echelon is working with its local partners, Connect the 
World. Echelon has the biggest footprint in terms of smart meter deployment 
in the world.

Connect The World managing director Ben Mavedzenge said the technology 
typifies the use of ICTs to manage supply and demand and in the process 
converting a grid into an internet protocol.

“Accessibility to information is as ubiquitous as one with an internet 
account. Any person can access the account and see how they are consuming 
electricity,” he said.

The power utility recently in-stalled in households prepaid metres, 
replacing conventional billing system that had been posing challenges as 
consumers were not paying up.

“It [prepaid meters] addresses the cashflow issues for utilities. It can’t 
tell you the upsurge or voltage drop. Because of that, it is called a dumb 
meter. Smart metering involves two-way communication. It can report you back 
to the server if one tampers with it,” Mavedzenge said.

Owen Masaraure, ZNCC’s energy efficiency engineer and project manager told 
Standardbusiness that the use of the technology came after the realisation 
that the solution to “the current power cuts is not only from the supply 
side of the grid but also lies on the fact that industry and commerce was 
not being responsible enough to account for all that is being fed from the 
grid”.

Masaraure said the use of smart meters was motivated by an urgent need to 
manage the country’s peak demand after realising that the power shortfalls 
of 800MW is a result of poor load management by industry.

“About 60% of this peak demand can be curtailed,  hence  smart metering 
technology would be ideal to manage such a large peak demand to considerable 
margins, thus reducing the power import bill as well as cutting by almost 
half in new capacity generations, being touted in most public circle and 
requiring large volumes in cash investments,” he said.

He said smart metering technology will enable the regulatory authority to 
carry out national power audits on continuous basis with a view to 
synchronise tariffs with variations in seasonal demands or coming up with a 
cost based tariff  regime.

How does industry benefit from smart meters?

Masaraure said companies on maximum demand can reduce by close to almost 40% 
on this tariff through load management programmes, since this technology is 
integrated to provide information for such a platform.

“Companies are imposed to part three types of tariffs, that is peak hour 
rate, off-peak rate and standard rate and can be in a position to reduce the 
much expensive peak hour rate, currently hovering above US$0,12 per unit, 
through load curtailment programmes, or rather peak shaving arrangements 
using the very smart metering technology. We are estimating that between 
5%-20% savings can be achieved on peak demand charge to those exposed to 
such a tariff,” he said.

Efficient use of electricity means that the country would save on imports. 
On average the power utility generates 1194MW and imports 55MW.

Masaraure said company executives or engineers will be enabled to manage 
their energy usage outside their business premises, as well as accessing 
their cost of electricity after usage at any time without prejudice from the 
power utility.

“There is also reduction in load shedding through improved load management 
programmes resulting in savings there by feeding back into the grid,” he 
said.

The technology is also envisaged to improve energy audits to the corporate 
world, thereby empowering management to formulate energy policies that 
enable them to invest monies into energy upgrades.

Zimbabwe Power Company plans to build $100m solar power plant

Zimbabwe Power Company plans to build $100m solar power plant

http://solar.energy-business-review.com/

EBR Staff Writer
Published 12 April 2013

Zimbabwe Power Company (ZPC) is outlining plans to construct a $100m solar 
PV plant in the Midlands Province of the country.

The electricity generated from the 100MW plant in Zvishavane would be fed 
into the national transmission line, The Financial Gazette reported.

Confirming the construction of plant, ZPC business performance manager 
Bernard Chizengeya stated that the company had recently completed the 
feasibility test for the plant.

"We are already done with the feasibility studies and the project will 
require about US$100 million. We are going to tender soon to get a 
contractor who can provide part of the funding," elaborated Chizengeya.

The new plant is expected to cater to the country's energy demand of 
2,200MW, of which the power generation capacity is reportedly at 1,000MW.

Meanwhile, ZPC also has five energy projects in the pipeline across the 
country. 

Power Utility's Prepaid Meter Confusion Sparks Public Anger

Power Utility's Prepaid Meter Confusion Sparks Public Anger

http://www.voazimbabwe.com

Gibbs Dube
01.04.2013

WASHINGTON DC — Some Bulawayo and Harare residents say they are confused by 
the Zimbabwe Electricity Supply Authority’s pre-paid meter billing system.

They fear they are being overcharged by the state entity, which is 
struggling to settle a $500 million debt.

A number of consumers told VOA Studio 7 that the billing system is so 
complicated that it is difficult to know how much electricity they are 
buying. As a result, some have stopped cooking traditional foods that need a 
lot of time to prepare, as they cannot be sure they will have exhausted 
their pre-paid units before they’ve finished cooking.

One area of confusion is the basic cost of a unit of electricity.According 
to ZESA, pre-paid meter users pay 2 cents per unit for the first 50 
kilowatts while those who consume between 51 and 300 kilowatts are charged 
11 cents per unit. Anything above 300 kilowatts attracts a charge of 15 
cents per unit.  The flat ZESA tariff is being replaced nationwide by the 
prepaid meter system.

But Ambrose Sibindi of the Bulawayo Progressive Residents’ Association said 
some residents recently spent $30 to obtain 292 units, but others received 
only 190 units for the same amount.

Mr. Sibindi said he has received many complaints about this and other areas 
of confusion.

Harare Ward 13 councillor Peter Moyo said the problems may be linked to ZESA’s 
attempts to recover debts from residents.

The $500 million ZESA debt accrued due to a decade-long economic downturn 
which eased after the adoption of multiple foreign currencies in 2009.

Energy Minister Elton Mangoma said ZESA and the government are aware of 
people’s concerns.

ZESA Tariffs January - December 2013

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ZESA 2013 Winter Wheat Power Supply Preparedness Report

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Zesa pre-paid meters spark outrage

Zesa pre-paid meters spark outrage

http://nehandaradio.com/

March 3 2013

BULAWAYO; The Zimbabwe Electricity Supply Authority (Zesa) pre-paid metre billing system has drawn the ire of Bulawayo residents who are accusing the power utility of cheating them of their hard earned money.

An unidentified man reads his prepaid 
slip after paying at the Zimbabwe Electricity Transmission and Distribution 
Company Fife Street branch in Bulawayo

An unidentified man reads his prepaid slip after paying at the Zimbabwe Electricity Transmission and Distribution Company Fife Street branch in Bulawayo

Zesa introduced the pre-paid meter system last year replacing the loader meters and the exercise is still to cover other areas. Yesterday residents said Zesa’s billing system has seen those who exceed 50 kilowatt hours a month having to spend 10 times more when they need more electricity for the remainder of the month.

“How are we expected to make ends meet when they are charging us exorbitantly like this,” said a resident from Coronation Cottages in North End.

She said the power utility’s billing system was deliberately complicated to cheat unsuspecting consumers. “When I first bought electricity I got 292 units for $30, when I bought again with the same amount, they gave me 190 units. This is day light robbery because how can the same amount give me lesser and lesser units,” said the resident, who is a pensioner.

“Zesa needs to be investigated so that their cheating is put to an end,” she said.

Another resident from Luveve suburb said he did not understand the whole billing system by Zesa.

“When I complained that they had actually charged me more than the same units last time I bought electricity last week they told me that the more I consume electricity the more I have to pay,” said the resident who is a teacher.

He said the stance taken by Zesa was unfair.

“They are taking advantage of the already vulnerable citizens. As it stands people are already struggling with other obligations such as school fees and yet they sell us electricity at this absurd rates,” said the resident.

Another resident from Mahatshula said there was a need for Zesa to review its tariffs.

“If there was a way of going back to the old system, it could be better, because this new metre system is proving to be more expensive,” said the resident.

He said the old system had no provisions that disadvantaged consumers such as the new system.

Another consumer complained that apart from the high tariffs, Zesa was also deducting more than 20 percent from amounts they pay to settle outstanding debts. “We are being simply being overcharged and we don’t understand these flimsy excuses they are feeding us,” said a Queens Park East resident.

The first 50-kilowatt hours are billed at two cents per unit while those who consume between 51 and 300 kilowatts are charged at 11 cents per unit. Those who exceed the 300 units are charged at a higher charge of 15 cents per unit. This has seen some consumers who slipped into the 51 kilowatts range complaining that the recently introduced prepaid meter system by Zesa was a way of cheating them as their units got used up quickly.

Contacted for comment Zesa Holdings spokesperson Mr Fullard Gwasira said tariffs for pre-paid meter users had not been increased, but consumers would witness a corresponding rise in electricity payments if they consumed more energy.

“The pre-paid metre system is not like the juice (airtime) card one for phones. This system is consumption sensitive in the sense that the more power you use, the more you should pay,” said Mr Gwasira.

He said this was because they wanted residents to adopt a culture of saving power.

“We want to enforce behaviour change, this system recognises how much electricity one uses and if people do not change their behaviour towards saving energy then they would always complain that we are overcharging them,” said Mr Gwasira.

The Zimbabwe Energy Authority, however, only gave the power utility the green light to increase average tariffs from 9,83c kilowatt per hour to 9,86c.

Zimbabwe/Zambia electricty debt

Zimbabwe/Zambia electricty debt

http://www.thezimbabwean.co.uk

19.02.13

by Rebecca Moyo

ZESA Holdings says the creation of a sinking fund with a local bank would 
enable Zimbabwe clear its US$70,8 million debt owed to Zambia after the 
creation of a sinking fund with a local bank.

Giving an update on operations before the Parliamentary Committee of State 
Enterprises and Parastatals today, Zesa chief executive Engineer Joshua 
Chifamba said

Chifamba said Zesa had made progress on the old debt owed to its northern 
neighbours clearing the way for work on the Batoka electricity project to 
begin.

“Zesa has paid US$20 million after the creation of a sinking fund with a 
local bank and should have paid an additional US$20 million by the end of 
March this year,” he said.

“The amount should be cleared by the end of March next year with work on the 
project expected to begin within 18 months as expressions of interest had 
been advertised,” he said.

Batoka is situated 50kms downstream of Victoria Falls and would provide 800 
MW of hydro power generation capacity for each of the two countries (1 600MW 
for both).

Zambia said they would not partner Zimbabwe until the asset debt accrued 
during the Federation-era was cleared. The principal amount owing was 
US$70,8 million but there was also an interest charge of US$115 million 
which has been accruing since dissolution. Interest is being charged at 5,2 
million per annum.

The debt also includes proceeds of the sale of assets belonging to former 
Central African Power Corporation disbanded in 1987, where Zimbabwe 
reportedly benefited more. CAPCO was running the Kariba power project for 
the two countries during Federation of Rhodesia and Nyasaland era.

He said the amount owed to Zesa Holdings by customers has ballooned to 
US$730 million since dollarisation of the economy in 2009. Chifamba said. 
huge corporates were the biggest debtors, accounting for nearly a third of 
the amount.

“The money we are owed has risen to US$730 million and of the total amount, 
domestic consumers owe us US$261 million,” said Chifamba. “This puts us in a 
very tight position (in terms of viability).”

Zesa embarked on a rollout programme of prepaid meters last year in a bid to 
improve revenue inflows, but this is moving at a much slower pace than 
anticipated due to funding problems. By last month, Zesa had installed only 
55 000 prepaid meters in domestic premises countrywide since August last 
year against a target of 600 000 households. 

Expansion of power station hits a snag

Expansion of power station hits a snag

http://www.bdlive.co.za

BY RAY NDLOVU, JANUARY 15 2013, 10:04 | 0 COMMENT(S)

A MULTIMILLION-dollar deal between Zimbabwe Power Company (ZPC) and 
Chinese-owned SinoHydro for the expansion of Kariba South power station has 
been delayed amid indications the deal document breached procurement 
regulations.

The delay will affect work on the expansion of the power station, which was 
expected to increase power generation by 300MW. The state procurement board 
was now likely to investigate, energy officials said on Monday.

At issue is the concern of SinoHydro about changes to the deal document, 
including an increase from the initial $355m quote to $390m, for 
"contingencies", seemingly added by ZPC without consultation. Power 
regulations stipulate that ZPC must first seek authorisation from the state 
procurement board for any price changes.

"The actual contract was for $355m, but the total price that we signed the 
contract for was $390m, including contingencies," said Wu Yifeng, at 
SinoHydro Zimbabwe. "It is the final price that was approved that concerns 
us. We did not include the contingencies."

Energy Minister Elton Mangoma said his office was not yet privy to the 
"irregularities", but advised that delays would increase the costs.

Power tender sparks furore

Power tender sparks furore

http://www.herald.co.zw

Friday, 04 January 2013 00:00

Lloyd Gumbo Herald Reporter
THE signing of a contract between Zimbabwe Power Company and SinoHydro, the 
winning bidder for the expansion of Kariba South Power Station, has sparked 
a furore amid indications that the deal breached procurement regulations.

This could delay the expansion of the power station that was expected to 
increase power generation by 300 Megawatts as the State Procurement Board 
might be forced to investigate the matter, sources said yesterday.

The SPB recently awarded SinoHydro of China — a sole bidder for the 
project — the tender for engineering, procurement and construction of the 
Kariba South Power Station expansion project.

This was after the firm tendered a bid for about US$368 million, which was 
reduced to US$355 million after Government resolved to scrap excise duty for 
the importation of equipment.

However, ZPC signed a contract with the Chinese firm last month for US$390 
million, without consulting the SPB on the new changes.

SinoHydro representative in Zimbabwe, Mr Wu Yifeng, yesterday confirmed 
there had been a variation to the original price.

“The actual contract was for US$355 million, but the total price that we 
signed the contract for was US$390 million, including contingencies,” said 
Mr Yifeng.

He said there was nothing wrong with the variation because both SinoHydro 
and ZPC had approved it.
“It is the final price that was approved by both sides. ZPC put variations 
for the contingencies. We did not include the contingencies in our bid 
because they had not requested for it,” he said.

He said the contingencies were to be agreed upon during contract 
negotiations.
However, a well-placed source said this was in breach of the procurement 
regulations.

“Section 26 of the procurement regulations states that in the event of any 
variations, it should be approved by the SPB. Contingencies should be 
sanctioned by the SPB but in this case they (ZPC) sanctioned it on their 
own. Besides, the bidder should have indicated their contingencies in their 
bid.

“This is a breach of the procurement regulations because the ZPC usurped the 
powers of the SPB. We will obviously act to address that anomaly because 
laws are laws,” said the source.
Efforts to get a comment from ZPC managing director Mr Noah Gwariro were 
fruitless.

Energy and Power Development Minister Elton Mangoma yesterday said he had 
not yet received communication from the SPB on the latest developments.

“I have not received any correspondence from the State Procurement Board if 
they have any concerns with regards to that. At this stage I am not aware of 
any additional issues to be sorted out.

“But let me say contracts for such big projects require an understanding of 
issues that are different. Timing comes into play because delay or fast 
tracking of the project will result in prices either going up or down,” said 
Minister Mangoma.

He said Government set conditions for the contract in the implementation of 
the project.
“We have told them that we don’t want them to blast into the rock like they 
were doing on the Zambian side (Kariba North). We don’t want to weaken the 
foundation of the dam wall. The geology of the rock on the Southern side is 
different to the geology on the Northern side. We have agreed that they 
should not blast because the rock here is softer compared to the Zambian 
side,” said Minister Mangoma.

SPB chairman Mr Charles Kuwaza said his office was yet to receive 
communication on the latest development.

Mr Yifeng said the project that is expected to take four years, would start 
as soon as the Export-Import Bank of China, the financers of the project, 
release the money.

This, he said, would be expedited if the Zimbabwean Government settled its 
US$27 million debt to the bank.

“The Ministry of Finance has already requested ZPC to pay the money, but 
they have a challenge in raising that money.

“They, however, agreed to talk to our head office in China to see if 
SinoHydro can help for the project to start soon,” said Mr Yifeng.

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