Ten new power producers licensed
by Roman Moyo
SOME ten independent power producers with a capacity to generate over 5,000
megawatts of electricity have been licensed by the Zimbabwe Energy
Regulatory Authority (ZERA).
The new producers are expected to complement power utility ZESA which is
struggling to meet demand and has rationed supplies to both domestic and
commercial users for years.
ZERA Chief Executive Officer, Engineer Gloria Magombo said the coming on
board of independent power producers will complement the existing power
Some of the licensed power producers are already operational while two -
Pungwe and Duru Hydro-Power Stations - are set to be commissioned in the
next six months with a capacity to generate 5,2 megawatts.
ZERA has since licensed Essar Africa Holdings (600MW), China Africa Sunlight
(Pvt) Ltd (120MW) and Nyangani Renewable - Duru Minihydro (3.8 MW).
Essar Africa Holdings’ commissioning is expected in 2016, China Africa
Sunlight (Pvt) Ltd commissioning is in 2014 while Nyangani Renewable Duru
Minihydro commissioning is in 2013.
The country is facing a huge power deficit which has impacted negatively on
industry’s performance, with the country generating an average of 1,000
megawatts out of a requirement of 2,200 megawatts.
In a bid to compliment power generation at Kariba, Hwange and other small
power stations, government opened up the sector to independent power
“Power projects by their nature are capital intensive and will cost US$2,5
million per megawatt and take up to five years before completion,” Magombo
ZERA has licensed nearly 20 independent power producers, of which four small
ones located in outlying areas are already operational with a combined
capacity of 83MW, generally lighting up the Lowveld and keeping a sawmill
Some of the companies that have been licensed but are not yet operational
include the proposed giant Sengwa Power Station (2 400 MW), Lusulu Power
Plant, to the north of Sengwa in Binga (2 000 MW), which is expected to be
completed next year.
Eunafric Power Station, with an initial capacity of 120 MW, is in
discussions with Harare City Council and the Zimbabwe Electricity
Transmission and Distribution
S. Korea sees potential in Zim's power sector
By Guthrie Munyuki, Senior Assistant Editor
Thursday, 01 November 2012 10:09
HARARE - South Korea wants to bring to an end Zimbabwe’s electricity agony
which has seen intermittent power cuts adversely affecting key sectors of
Boasting of experience in building power stations both at home and abroad,
the Asian country seeks to help Zimbabwe expand its power base.
However, there are no prospects of an immediate deal.
“Construction of power stations in your country is a necessity. A viable
energy sector is what your country needs desperately right now because
without energy you cannot do anything,” Korean ambassador to Zimbabwe, LEW
Kwang-chul,” told the Daily News this week.
“In this sector (power and energy) Korea has a role to play because we have
built a lot of power stations, and every kind of power station in other
“You need to construct more power stations, either hydropower, coal fuel or
gas turbine station.
“But as Korea we did not only build many power stations in our own country
but we do have lots of experience building power stations overseas.
“So for us, if our companies can make a contribution they can come to your
country and start building modern power stations.”
However, there are no immediate plans to engage the Koreans in the expansion
of power stations.
Government is yet to sound its Korean counterparts while it continues using
ad hoc measures to keep Zimbabwe powered.
“Your government is having an interest in renovating the hydropower
“Our strength lies in building thermal power stations. As your industry
grows I am sure you will see the need to build more power stations.
“We have lots of things to cooperate with you. As I told you, we can play a
significant role. Once terms of negotiations are met appropriately from both
sides, certainly we can do that.”
The Korean envoy spoke as Zimbabwe continues to experience power shortages
as a result of varying factors.
Among them are the cash squeezes to import more power to augment what is
currently produced and finance rehabilitation of current power stations.
Zimbabwe needs about 2 200 megawatts of electricity at peak consumption but
generates less than 1 300 megawatts.
As part of an audacious bid to improve power supplies, Zimbabwe looks
expectantly to the Batoka Hydro Project agreed with Zambia.
It has the potential to generate between 1 600 to 2 000 megawatts.
Currently, Zimbabwe relies heavily on Kariba and Hwange power stations whose
power-generation capacities are severely restricted — putting more strain on
treasury which finances import of additional supplies from the region.
Regionally, only the Hydro Cahora Basa in Mozambique is exporting power to
Zimbabwe amid surging power demand in southern Africa.
Yet South Korea says its profile in building thermal power stations both at
home and overseas, is enough testimony of its commitment to end power woes.
“We accumulated a lot of experience in building, in our country, these
energy producing stations. On the other hand we went abroad and there we
built a lot of power stations.
“We do not only build power stations but we also run them under Independent
Power Project for between 15-20 years and hand over to the host country,”
South Korea has built power stations in the Middle East, Africa and some
Asian countries such as Philippines, according to the envoy.
The Asian country, with a population of 50 million, is Asia’s fourth largest
and the world’s 15th largest economy.
Its economy is export-driven, with production focusing on electronics,
automobiles, ships, machinery, petrochemicals and robotics.
Zimbabwe is among the several African countries that have benefited from the
$1 billion assistance under the Korea Africa Economic Cooperation (Koafec).
Kwang-chul said Korea’s rapid economic and social development, particularly
in the field of IT and agriculture holds valuable promise for Zimbabwe.
“Obviously, Korea, like China, is also a very well known industrial country.
“We do produce a lot of manufactured goods. In doing so, the natural
resources are a necessity for our country.
“It’s quite natural that a many Koreans population do have a lot of interest
in countries like Zimbabwe.
“We do have keen interest in the extractive industry. Agriculture in certain
aspects is also a natural resource.
“Some of the Korean companies have a lot of interest in resuscitating
commercial farming in your country. As far as I know some of them are
already in negotiation phase with your concerned authority.
“That’s my understanding. But as you know, it takes some time to complete
all these negotiation procedures.
“Certainly in the near future, some of the bigger Korean companies will make
their presence in Zimbabwe.
“They are open to do business in extractive industries and commercial
farming,” said the ambassador.
However, he implored the government to establish a legal and ownership
system that allows commercial farmers to run their businesses with
While seeing resuscitation in agriculture, Kwang-chul observed that most
farms were saddled with poor irrigation equipment despite the abundant small
“You have many small dams but unfortunately because of many factors
including lack of electricity you cannot take advantage of these dams even
though you have water in these dams. You cannot draw it to the farms,” he
Most farmers have suffered bad cropping as a result of drought-induced
effects, including poor rains.
Consequently, Zimbabwe has remained on the throes of cereal and grain
deficits blamed on both these factors and its chaotic 2000 agrarian reforms
which empowered peasants and Zanu PF politicians.
But Kwang-chul said Zimbabwe was poised to rejuvenate its agriculture by
installing new measures such as technology.
Korea, said its envoy, has programmes that would open avenues to new trends
in different sectors of the economy.
“In order to reach this level of course, Korea had to run a lot of public
complicated economic development programmes.
“Those economic experiences are the things we want to share with
Zimbabweans. We are ready to open our
expertise and know-how which we have gathered through all these complicated
“From government side, we already have some programmes run through the
Knowledge Sharing Programme.
“We continue our exercise to transfer our technology and expertise to the
Zimbabwe people by inviting more of Zimbabwean trainees either to Korean
International Aid Cooperation (Koica) or some other programmes,” said
He said big Korean corporations were also running their own training
“Perhaps we can take advantage of that. I would like to see enhanced
exchange of people, just ordinary people, students, tourists, visitors and
“Ordinary people are the backbone of that valuable cooperation for the two
In his one-and-half years in Zimbabwe, Kwang-chul observed that the
transition government has made progress which he said was sufficient to lead
towards national consensus in resolving socio-economic and political issues.
“My observation is that your country is moving in the right direction.
“I would want to see all these complicated procedures move on peacefully,
non violent, smoothly and to see a united people.
“I want to see Zimbabwe united even though you have to run this very
“Unity from own experience, is quite important for the country to move
ahead,” said Kwang-chul.
‘Bring us on board, we will light you!’
Cash-strapped Zesa losing plot on free bulbs
Saturday, 27 October 2012 00:00
Zesa appears to be spending around US$6,1 million on free light bulbs for
consumers, most of whom do not pay their inflated bills, while it slows down
on the spread of pre-paid meters. It all seems very odd. Of course energy
saving fluorescent bulbs will save a lot of energy. Zesa reckons it could
save 200MW as darkness falls, enough to keep Bulawayo lit up. But the saving
will not be so great, unfortunately, simply because many households already
use these bulbs and so much of the expected savings have already been made.
Consumers are not stupid. They can see the savings almost immediately.
What may have made a little bit of sense a few years ago, now makes no sense
at all. The energy-saving bulbs are hardly new technology. A variety of
makes are readily available on all supermarket shelves and cost around twice
as much as equivalent tungsten filament bulbs. People have been buying them.
Some other utilities did give out free bulbs years ago, but just one to a
household to prove that the new bulbs did produce decent light and were
quite safe. Most countries did what Zimbabwe should have already done and
which it can do right now: they banned the manufacture and import of
filament bulbs and stocks on shelves soon ran out, leaving just the
fluorescent bulbs and now the first LED bulbs that are likely to become the
standard within a few years.
Some countries, with factories pouring out the old filament bulbs, had to
tread carefully as they brought in the bans, giving enough notice to
industrialists so factories could be converted.
But those, like Zimbabwe, which never made the old-fashioned bulbs simply
announced an import ban and watched as consumers quickly converted as the
short-life tungsten bulbs expired. The utilities achieved their desired
conversion without spending a cent.
Zesa and its parent energy ministry could do exactly the same. Zimbabwe has
laws that allow the Government to either ban specific imports or to impose
such high duties that the undesired item becomes too expensive.
Why has Zesa not pushed for such an import ban? The case is good so it would
not need much more than a Minister phoning another Minister.
The money saved from an ill-considered policy to give some households a
free-gift could be put towards some of the programmes Zesa keeps telling us
it desperately needs. Not all households will benefit; those that have
already switched will get nothing except the contempt of Zesa staff, a
strange reward for taking Zesa advice.
Zesa has already paid US$2 million for 1,8 million bulbs that are not in
short supply and plans to spend another US$4,11 million on the rest of what
seem a huge order.
That US$6 million could have been spent on a lot of other things that would
reduce consumption, like the pre-paid meters just about every consumer wants
desperately, so desperately that there are rumours, probably untrue, that
Zesa staff are taking hefty bribes to let a consumer jump the queue.
But the rumour-mongering is a sign of frustration over delays and a sign
that people really want Zesa to move faster on the meters.
But with warehouses bulging with the new bulbs and more no doubt on order,
what is Zesa to do?
They can quickly do something right. They can get the law used to ban
imports of filament bulbs, so achieving the desirable end of seeing these
phased out and they can sell their fluorescent bulbs to wholesalers and
shops at a little more than cost price and get their money back.
They can then use that money to buy stuff they are short of. They do not
need to compound a silly and expensive mistake by insisting on repeating it.
Mozambique to boost power supplies: ZESA
by Staff Reporter
ZESA has reduced its debt with Mozambique’s Hydro Cahora Bassa from US$76
million to just under US$3 million over the last six months with officials
saying this would help improve power supplies across the country.
Zimbabwe needs about 2,200 megawatts of electricity at peak consumption but
ZESA generates just below 1,300 megawatts and plugs the gap with imports
from the regional suppliers.
The utility has been forced to ration power to both domestic and commercial
users after supplies from the region were cut over mounting debts.
However, ZESA spokesman, Fullard Gwasira said reduction the Hydro Cahora
Bassa debt to about US$2.7 million would see the company boosting supplies.
ZESA expects to pay up the debt by year end.
“Load-shedding is going to be significantly reduced as Cahora Bassa have
increased their supply to us as we have almost cleared the debt we owe
them,” he said.
“The challenge we have is that we are splitting our resources between two
equally important areas.
“First we have to pay for the electricity we are importing on a daily basis
while secondly some money also has to be channelled towards clearing the
“It’s a matter of tackling two issues at the same time, but we are confident
that we would have cleared the debt by the end of the year.”
ZESA’s financial troubles have also been worsened by customers failing to
pay their bills. The utility says it is owed about US$500 million.
“With the introduction of pre-paid meters, the era of a consumers using
electricity and then failing to honour their bills will be a thing of the
past,” Gwasira said.
Energy Minister, Elton Mangoma, has also revealed that several new projects
are also planned to help boost the country’s power generation capacity.
Early this year, Mangoma said a French consortium had been granted a licence
to build a 2,000 MW thermal power plant in an investment worth about US$3
The power station will be situated at Binga’s Lusulu coal fields which are
said to have an estimated 1,2 billion tonnes of coal reserves.
And last month, Chinese firm Guangdong Bureau of Coal Geology also announced
plans to invest $3.5 billion to build a 1,200 megawatt thermal power plant.
Outcry as ZESA continues disconnections over unpaid bills
By Tichaona Sibanda
09 October 2012
There has been huge outcry from ZESA consumers countrywide following the
power utility’s ongoing program to cut off supplies from those with
Two months ago, Energy and Power Development Minister Elton Mangoma ordered
ZESA to stop disconnecting all consumers with unpaid bills, until it had
installed prepaid meters. It is hoped that the meters will put an end to
ZESA’s estimated billing system that thousands of consumers have said do not
reflect their actual power usage.
The power utility is in the process of rolling out prepaid meters in all
domestic and business premises, and it expects that in 10 months time 600
000 customers will have the meters installed. Currently only 19 000
customers have the new service.
But in apparent defiance of the minister and government’s directive, ZESA
has been disconnecting power to thousands of defaulting domestic and
commercial consumers in the past few weeks. The state controlled Herald
reported that several households and businesses countrywide, including those
at growth points, have been disconnected.
Mangoma has urged those being disconnected to report to his ministry.
Customers owe the power utility more than $600 million. Many have bills
averaging between $500 and $1 000, accumulated since the introduction of
multiple currency system.
SW Radio Africa correspondent Simon Muchemwa reported that despite Mangoma’s
directive, ZESA has not stopped disconnecting power to consumers with
He said the problem is that consumers with outstanding bills have not taken
up ZESA’s advice to negotiate methods of payment with the power utility.
“This is nothing new in Harare, ZESA has not stopped cutting off power for
months, they do it everyday as long as you owe them money in unpaid bills,”
“But if you approach the company and work out a repayment plan, they will
not cut off power to your household or business premise,” Muchemwa added.
Muchemwa said that such arrangements are understood to have been made by
high level government defaulters, who were singled out in a report this year
as not paying their bills. This information was received with anger by
regular consumers, who complained that the power utility was only
disconnecting them and not government officials.
Cabinet restores Kariba’s US$700m power tender
October 5, 2012 in News
CABINET on Tuesday reversed a decision by the State Procurement Board (SPB)
to cancel the tender for Kariba South’s US$700 million expansion programme
which had been awarded to Chinese firm Sino-Hydro.
Report by Staff Writer
Sino-Hydro was the sole bidder for the project, but had failed to win the
tender after disagreements with the SPB over a site visit certificate and
bid bond which is issued as part of a bidding process by the surety to the
project owner, to guarantee that the winning bidder would honour the
contract under the terms on which it bid.
Sources said the Chinese firm’s bid was restored after stormy debates in
Cabinet on Tuesday.
Before cabinet overruled the SPB’s decision to cancel the Sino-Hydro tender,
Energy and Power Development minister Elton Mangoma had complained of the
cancellation saying it was unfortunate that flimsy reasons were being given
as the basis for cancellation of such an important national project.
Once fully operational, the Kariba South plant is expected to provide an
additional 300 megawatts to the national grid by 2016, and commission a
massive 800MW at the Batoka Gorge four years later if funding is secured.
Zimbabwe is only capable of generating about 1 200MW of the peak national
demand of about 2 2000MW, and government’s decision to restore the deal is
part of its efforts to curb a crippling power shortage that has stalked the
country, particularly in the past five years.
The country’s industrial capacity utilisation stands at an official 60%,
raising fears the power deficit would worsen should capacity utilisation
Zimbabwe Energy Regulatory Authority chairperson Canada Malunga last month
said the new energy policy acknowledged the role of renewable energy sources
and the power regulator was working on an Independent Power Producers policy
The regulator has licensed various large electricity generation projects,
investing in 11 new projects with a combined capacity of about 5 400MW
valued at US$10 billion.
Zimbabwe’s power shortage has resulted in numerous outages for domestic and
business consumers, affecting government projects aimed at helping boost
Zimbabwe plans to raise power output to 10 000 megawatts in line with the
National Energy Policy.
Zim power crisis sparks concern
28 SEP 2012 11:43 - TAWANDA KAROMBO
As usage outstrips supply, electricity outages are hobbling the country's
corporate sector, writes Tawanda Karombo.
Zimbabwe is pinning its hopes on measures such as a Chinese-funded power
plant to boost the country's electricity generation capacity and offset a
crippling energy supply situation.
The shortfall has led to escalating operational costs for several companies,
many of which have been forced to resort to high-voltage diesel generators
during extended power outages. The situation has been further compounded by
rising consumption, which has in recent years outstripped supply.
The state power utility, the Zimbabwe Electricity Supply Authority (Zesa),
has instituted load-shedding to manage the growing supply-demand mismatch.
This has led to suppressed production capacity for Zimbabwe's corporate
sector, with industry, manufacturing and mining companies being the most
A recent research report on Zimbabwe's electricity crisis by Business
Monitor International (BMI) noted: "Zimbabwe is in the midst of an energy
crisis. With peak energy consumption requirements of 2 200MW and domestic
generating capacity of around 1300MW, outages are commonplace in the
Tafadzwa Manyara, a local engineer, said that Zimbabwe "needs close to 2
500MW, yet we are generating less than 1 500MW". Analysts blame the power
utility for the country's electricity supply woes, but Zesa counters that
corporate and individual consumers are not paying their bills. Powerful
individuals, among them high-ranking government officials, are said to owe
Various initiatives are now underway to try to boost Zimbabwe's electricity
generation capacity. Among these are plans by a Chinese company, the
Guangdong Bureau of Coal Geology, to invest about $3.5billion to fund the
construction of a 1200MW thermal power plant.
Chinese investors receive special concessions from President Robert Mugabe's
government and sources say they will not be required to cede a 51% majority
shareholding to locals under the government's controversial indigenisation
policy. Other foreign investors are buckling under government pressure to
cede majority stakes to black Zimbabwean groups or risk being kicked out of
the country without compensation.
Platinum miner Zimplats has had to advance a $25million loan facility to
Zesa. The power company has used the money to reduce arrears it owes to
Mozambique's Hidroeléctrica de Cahora Bassa, enabling the resumption of
electricity imports. In return, Zimplats will receive guaranteed power
supplies for the next three years.
Other mining companies are reportedly paying more for guaranteed electricity
supplies. However, most businesses in Zimbabwe have to deal with the regular
Finance Minister Tendai Biti has said that Zimbabwe is negotiating a
$350million loan to expand the Kariba South power station to provide an
additional 300MW of electricity.
Other reports suggested that a French investment consortium had been granted
a licence to build a 2000MW thermal power plant in a deal reportedly worth
about $3billion. Zimbabwe also has vast coal resources that could help to
generate more power to offset the supply gap.
Engineer Manyara said the country needs to "invest in power generation" and
"allow private players in the power generation field". He said there was
also a need for a "good revenue collection strategy, like prepaid meters"
and urged more usage of other energy sources such as natural gases, solar
power, wind power and uranium.
Johannes Kwangwari, an economic analyst, said that additional operational
costs incurred by companies running generators were forcing them to raise
the prices of goods and commodities. "The companies have to recover their
costs, and the ultimate impact will be on inflation and price distortions,"
Researchers at BMI, however, said that Zimbabwe's overall power generation
will increase by an annual average of 12.6% between now and 2016, to reach
16.23 terawatt hours. "The biggest contributor to this increase will be
coal-fired power generation, which is to increase by an annual average of
22.8% over this period" because of expansion at the Hwange thermal power
"Hydropower generation is due to increase by a much more modest 3% per
annum, despite increased capacity planned for the Kariba South hydroelectric
plant and a new plant planned on the Gairezi River. However, this growth in
energy provision will not be enough to grant Zimbabwe energy
self-sufficiency," the report noted.
IDBZ raises US$60m for Zesa’s meters
September 21, 2012 in Business
THE Industrial Development Bank of Zimbabwe (IDBZ) is raising US$60 million
to partner the Zimbabwe Electricity Supply Authority (Zesa) in the ongoing
implementation of the prepaid metering project, IDBZ acting director Alex
Report by Staff Writer
He said US$30 million would be raised through IDBZ infrastructure bonds and
Under the scheme, Zesa plans to install 600 000 prepaid meters countrywide
as part of the first stage to effectively phase out its conventional
shambolic post payment billing system which resulted in it accumulating more
than US$600 million in unpaid bills.
Zesa last week began rolling out pre-paid meter system in Harare and the
project is expected to spread to other parts of the country next year.
Zimbabwe continues to battle with power deficits and currently generates
1000 MW against a demand of 2200 MW, hence the resultant erratic power
supply hampering local industry.
Machimbirike said his bank has so far disbursed US$58 million towards the
refurbishment of Hwange, Kariba, Harare, Munyati and Bulawayo power stations
in order to up power generation.
What exacerbates power deficits in Zimbabwe are lack of maintenance of
ageing equipment and lack of investment in the sector.
The Zimbabwe Energy Regulatory Authority (Zera), however, last week
announced that it had licensed electricity generation projects worth US$10,1
billion, a development likely to address the power deficit in the
Zera said the licensed projects would have capacity to bring in 5 400 MW
onto the national grid.
The projects would use mini-hydro, biogas, wood waste, coal-fired and solar
The energy regulator said it licensed a 250 MW solar project worth US$750
million, which is currently at the development phase.
Four investors had been licensed to develop coal-fired electricity in
projects worth US$9,3 billion.
The projects include RioZim’s Sengwa, Essar and China Africa.
Border Timbers has also injected US$1,6 million for a woodwaste project
which will bring in 500KW for the group’s own use.
The three biogas projects to generate 96MW are in Triangle, Hippo Valley and
Plans are still on the cards to expand capacity at Batoka to 800MW by 2020
and Kariba South to 300MW by 2016.
Zera is assisting the development of the Renewable Energy Policy framework
and drafting the Feed-in-Tariff framework for renewable energy technologies.
The energy regulator is also working on the Energy Efficiency Policy
framework to advise both producers and consumers to ensure optimisation of
Bulawayo fights to reclaim power station
Saturday, 15 September 2012 13:44
BULAWAYO - Bulawayo City Council (BCC) has intensified efforts to regain
control of the city’s thermal power station.
The Bulawayo power plant was arbitrarily expropriated by the Zimbabwe
Electricity Supply Authority (Zesa) more than two decades ago after the
amalgamation of all the Local Authority Electricity Undertakings.
Amen Mpofu, Bulawayo deputy mayor, told residents who had questioned him why
the BCC was not taking over the power station so as to improve the power
supply situation in the city while also generating essential revenue from it
that council was “seriously looking” into the issue to ensure Zesa “renders
Caesar what belongs to Caesar”.
“The delay in taking over power station is political, but let me assure you
that we are fighting hard to make sure that the power station is brought
back to city council management,” said Mpofu said during budget breakfast
consultative meeting in the city.
“As a city we want our power station which was arbitrarily expropriated from
us back. It may take a little of time to get it back but I am sure we are
going to win that battle as we are seriously looking at the issue,” the
deputy mayor said.
According to the latest council minutes, the local authority has also
ordered an investigation into the circumstances surrounding the take over of
the power station.
BCC also wants to know why Zesa had stopped paying annual royalties to the
council and why it did not compensate council for the takeover of the power
“The financial director explained that Zesa did not compensate council for
the takeover of Bulawayo power station, but records show that at one point
council was receiving royalties from Zesa. Zesa had unilaterally
discontinued this, the matter is now being investigated,” reads part of the
BCC has also accused Zesa of failing to manage and maintain the station,
which often breaks down and fails to provide power to industry.
Early this year, Zesa disconnected electricity at Tower Block and the city
council over a $20 million plus debt.
The power cut incensed council and ratepayers alike, prompting the
Mpofu said the issue of reclaiming power stations from Zesa by local
authorities was not peculiar to Bulawayo.
Zimbabwe targets 10,00MW power grid
by Mining Weekly
ZIMBABWE is continuing to invest in new power generation capacity to close
its supply gap, officials from the energy regulatory authority and national
power supplier told delegates at the yearly Mining Indaba in Harare on
Zimbabwe Energy Regulatory Authority (Zera) chairperson Canada Malunga said
the government had launched its National Energy Policy (NEP) last week,
outlining the strategies and measures for increasing electricity capacity.
Zimbabwe has set a target of 10 000 MW of installed capacity by 2040 to
support a vision of growing the economy to $100-billion.
The NEP called for a capacity expansion of 800 MW at the Batoka Gorge
hydropower power station by 2020, 300 MW at the Kariba South hydroelectric
power station by 2016, as well as other smaller hydropower plants.
Zimbabwe Power Company (ZPC) MD Noah Gwariro said the national electricity
supplier’s immediate goals were to invest $900-million in existing plants to
increase dependable capacity, as stipulated by the NEP. ZPC would extend the
Hwange power station’s capacity by 600 MW.
The ZPC would also invest $2-billion in new generation projects, including
the construction of a 30 MW Gairezi hydropower plant, the development of the
Lupane gasfields for a 350 MW plant and a $500-million transmission
Gwariro said the development projects were at an advanced stage and would
add 900 MW to Zimbabwe’s power mix by 2016.
Hwange and Kariba South were currently between 80% and 90% complete, with
Lupane standing at about 10%.
Meanwhile, Malunga said the NEP also outlined the role of independent power
producers (IPPs), public-private partnerships and joint ventures in the
expansion of electricity capacity.
The NEP further acknowledged the role of renewable-energy technologies and
Malunga said Zera was working on an IPP policy framework to be considered by
government and assisting in the development of a renewable energy policy
framework and drafting the feed-in tariff framework for renewable energy
The regulator has licensed various large electricity generation projects,
investing in 11 new projects with a combined capacity of 5 400 MW and value
Malunga pointed out that all the new projects were looking at trading in the
Southern African Power Pool (SAPP). “Zera works closely with SAPP in
coordination of regional power generation projects for optimisation of
available resources in the region,” he noted.
Malunga said that sufficient power supply was important to ensuring growth
in Zimbabwe’s mining sector, which had been identified by the country’s
Medium Term Plan as one of the main pillars in its recovery process. “Mining
operations are energy intensive and consume 14% of electricity in Zimbabwe.”
Residents angry with Zesa estimate bills
Sunday, 02 September 2012 10:08
HARARE - Harare Residents’ Trust (HRT) in the public interest and in the
fulfilment of its vision of a free and prosperous citizenry continued to
receive reports from residents owing to the continued use of estimated
billing instead of actual meter readings to reflect actual consumption.
Residents are concerned with the operations of the Zimbabwe Electricity
Distribution Company (ZETDC), as the billing authority. “This has left the
majority of the populace in debt, given the social and economic hardships.”
Widespread power disconnections have followed across Harare, including some
buildings in the Central Business District.
During the first two weeks of August 2012, the HRT recorded 180 cases of
residents whose electricity had been disconnected, with the majority of
these cases based on estimated bills.
As a success, the HRT has been able to have these cases re-evaluated to
reflect actual consumption as residents are being trained to read their own
“The Zimbabwe Electricity Supply Authority (Zesa) has not satisfactorily
explained how residents’ bills have continued to rise above their incomes
“The HRT urges Zesa to immediately review the bills of the residents
downwards to reflect actual consumption and the capacity or ability of the
recipients of the services to pay,” said HRT.
The residents’ body urged Zesa’s public relations officials to be available
when they are needed to address residents’ concerns within communities.
“HRT strongly advocates for the complete reduction of the debts owed to
ZETDC by the residents.
In line with the HRT objective Number three “to facilitate engagement among
council officials, service providers and the citizenry to improve the
standards of living in Harare Metropolitan Province”, the organisation will
continually endeavour to seek and facilitate dialogue between ZETDC and the
residents in order to reach a common understanding in pursuit of an
efficient electricity provision system.
“Also in line with objective Number four to “monitor and audit the
performance of service providers so that they deliver quality and affordable
services to the citizenry”, the HRT will continue to closely monitor how the
national power utility provides services to its customers to ensure
accountability and value for money for the residents. A transparent billing
system is a must if electricity consumers are going to pay up their bills.”
Below is a summarised brief on the provision of electricity and its
distribution in the various suburbs within Harare based on information
provided by HRT Community Coordinators and the various suburban residents’
Waterfalls: Uplands, Picnic Park, Hilton Park, Cheviot and Shortson areas
experience electricity power outages from 0510 hours or 0600 hours in the
morning to around 1300 hours.
When there is no electricity in the morning it will be back in the afternoon
or it is vice-versa.
The electricity is usually cut off for seven hours. Residents are forced to
buy paraffin which costs US$1,15 per litre and firewood which costs $1 for
Mbare: Power outages are usually experienced for five hours in Mbare
National, Jourburg Lines, Nenyere and Mbare flats.
At Matapi hostels, there is rarely load shedding because they are
interconnected to Matapi Police Station and home industrial areas.
Hatfield: Residents have always been satisfied with supplies. However, in
the past three weeks, electricity supplies have been cut off in excess of
four hours daily.
Borrowdale/Mount Pleasant: An improvement has been noted by most residents
but they require Zesa to follow a known timetable.
The residents are sometimes switched off for an hour or for five hours then
Greendale, Mandara, Highlands and Chisipite — Improvements have been noted
Duration of load shedding has been reduced from eight to five hours per day
in the last week.
Residents are mainly complaining due to increased expenditure on fuels for
their generators and firewood and paraffin in place of electricity.
Tashinga — Electricity outages are experienced from 0500 hours to 1300 hours
Dzivarasekwa — The area experience power outages for averagely four hours.
Kuwadzana Extension — There is an average of eight hours without electricity
Kuwadzana — an average of eight hours to 9 hours without electricity.
Warren Park — Power outages averagely eight hours a day.
Highfield, Jerusalem and Egypt — During weekdays there are power outages
from are experienced from 9am to 2pm and on particular days load shedding is
experienced between 2pm and 9pm.
The load shedding at times alternates between the two suburbs.
Glen View — Electricity is available from 8pm to 9am on Monday, Wednesday
and Friday but on Tuesdays and Thursdays there is electricity supply during
the day from 9 am to 6pm.
Glen Norah A — Electricity is supplied four hours during the day and power
cuts are experienced twice or thrice a day, increasing the risk to people
and damage of electrical gadgets.
Glen Norah B — There is load shedding from 2pm to 10pm during the day.
Budiriro 4 — Load shedding is experienced twice a day from 6am to 12pm and
from 2pm to 8pm during weekdays.
Budiriro 3 — There is no supply during the day from 6am to 8pm especially
Mufakose — Electricity has been supplied consistently from the first week of
Concern over ZESA debts overshadows prepaid meter rollout
By Alex Bell
29 August 2012
Disgruntled customers of Zimbabwe’s power utility have said they are
concerned that their outstanding debts, based on years of inaccurate power
bills, will still be owed as the company rolls out prepaid meters.
The prepaid meter exercise was officially launched at Machipisa shopping
centre in Harare on Tuesday and the country’s power supply authority, ZESA,
plans to install 600,000 meters countrywide. This will form part of phase
one of the operation, which will ultimately help the parastatal dispose of
its current billing system.
ZESA has earned the ire of most of its consumers by issuing bills based on
estimates, insisting it never had the money to send out meter readers. Their
system has proved unreliable, and many people have been billed for far more
than they use.
This has not stopped ZESA from disconnecting its users who have not paid
their bills, with the only exceptions being top government officials. This
includes the Mugabe family, whose outstanding bill at the end of last year
was reportedly more than US$300, 000.
Energy and Power Development Minister Elton Mangoma has now tried to
reassure ZESA customers that they will not be switched off. But he said
their debt will be incorporated under the pre-paid meter scheme.
“All those who were disconnected for non-payment can now be connected to
prepaid meters without making a down-payment for the reconnection fee, while
20% of the money used to buy electricity will be applied towards the
reduction of the debt until it is fully paid,” Mangoma said at Tuesday’s
launch of the pre-paid meters.
Precious Shumba, the Director of the Harare Resident’s Trust, said the long
term benefits of pre-paid meters will be welcome to the public. But he said
ZESA has in no way taken into account the “unreasonable and unjustified
debts based on their previous bills.”
“People are being asked to pay off huge debts accrued using unjustified
billing systems. ZESA should recalculate the outstanding bills based on
actual usage once the meters have been installed,” Shumba said.
SW Radio Africa was unable to contact Minister Mangoma or ZESA for comment.
Zimbabwe's energy crisis
28 August 2012
Vince Musewe says country stopped investing in new generation capacity in
Zimbabwe energy crisis: African solutions to an African problem?
Government has a reputation of structuring policy around individuals and no
wonder why for 28 years, we have had free riders in the energy ministry.
A couple of weeks back, the Minister of Energy, Elton Mangoma, informed us
on what he is doing to fix the energy crisis in Zimbabwe. I have studied his
speech and must comment on it especially on his short term solutions.
I note that it is since 1984, that Zimbabwe stopped investing in new
generation capacity in the energy sector. That was only 4 years after
independence meaning that for 28 years, no body anticipated that the system
would someday break down or be inadequate to meet our needs. This means that
for 28 years, even though we have had a minister occupying the energy
portfolio, he has been getting paid for doing nothing. Well there is no
revelation in that statement.
Now hear this, the Hwange power station has been operating much below
capacity (between 300 and 500MW) out of a potential capacity of 900MW. Those
responsible for fixing the problem forgot to fix ancillary machinery while
focusing on the rotor and now that the rotor is fixed, they must still
attend to the ancillary equipment. As a result we still have low capacity
utilization of the power station.
Clearly we have had serious mismanagement from all those involved including
ZESA. The minister alludes to this fact whether ZESA is likely be an
acceptable partner in the purchasing of solar generated power from
independent power producers. In my opinion, the old model with ZESA in the
middle has caused so much pain for everyone and its time we came up with
innovative and more efficient distribution model especially for solar power
generation and distribution. In my view restructuring and chunking ZESA, as
the minister announced, will not change the nature of the beast. It merely
means we will have more egos involved more perks to pay and more jobs for
On the issue of solar panels for homes, I think that it is a good idea to
ensure that these are affordable. I do think however, that we continue to
seriously under rate the solar power solution. We need to be more aggressive
in the use of solar power both for residential and industrial use.
For example, the ministry of energy can put in an incentive for homes to
convert. For example, write off an agreed cost of a home solar power system
against any debt owed to ZESA or provide a subsidy? We could also make it
law that any new residential developments must have solar water heating
systems as water heating is a significant cost. Where possible, we must
encourage homes to be completely off grid thus reducing the demand at all
times and not just during the day as the minister suggests.
In the case of companies, they can invest in solar power plants and be able
to, for example, get tax benefits for doing so or sell that power back to
On the issue if locally manufactured solar lamps for US$10, which is
commendable because I have seen some imported lamps being sold for US$ 40!
There has been significant profiteering in this sector and we need to
intervene and save the poor from unscrupulous suppliers. We must encourage
local manufacture of these and create jobs as the minister intends.
Prepaid meters result in energy saving while improving cash flow for power
suppliers. Al though they are not that easy to manage for those that are
unable to budget and do not have consistent income, which is the case for
most Zimbabweans, they remove doubt and suspicions as long as the company
that manages them is a credible one. Minister, why did we have to include
foreign companies in this process? Surely there are enough qualified
Zimbabweans who can run prepaid meter platforms?
There is still some education necessary when it comes to domestic use of
gas. I noted that those in the townships re reverting to paraffin which is
sad development. Again here I see that a Zambian has been appointed to
assist us? There are millions of qualified Zimbabwean engineers in the
Diaspora who can surely do the research and come up with the necessary
Overall I think the minister has done his home work but it is very important
that we find quick short term solutions and he cannot do this on his own
without users contributing to save energy.
The fundamental challenge we face is that of information and awareness
within our communities on the importance of energy to our well being as a
country. Energy saving must be a community driven campaign and I see nothing
on that front in the ministers plans.
Last but not least is the use of CFLs' in Zimbabwe. I am led to believe that
these contain mercury and are harmful to the environment. LED lighting is
the new way and shouldn't we go that route now to avoid unnecessary future
I do hope that in the event that if the minister is promoted in the future,
we do get some continuity in policy on whoever takes over. Government has a
reputation of structuring policy around individuals and no wonder why for 28
years we have had free riders in the ministry.
Vince Musewe is an independent economist currently in Harare and you may
Zimbabwe's forests go up in smoke amid energy crisis
Wed, 15 Aug 2012 13:19 GMT
By Madalitso Mwando
BULAWAYO, Zimbabwe (AlertNet) – Pensioner Thandazani Ndlovu earns his living selling firewood, making him better off than Zimbabwe’s millions of jobless.
From the back of his pick-up truck, he has established a thriving business as demand for firewood continues to grow in Bulawayo, a city of 2 million people in the southwest.
Residents are turning to wood for cooking and heating as Zimbabwe’s electricity outages get worse, with its energy utility battling to keep the lights on in urban areas.
As winter began, the state-owned power company announced in June it was increasing its load-shedding schedule - music to Ndlovu’s ears.
He operates in the crowded streets of Bulawayo’s townships, where preparing food over a fire has become a daily reality.
“On a good day, I can make $20,” Ndlovu says. “I get the firewood from farms on the outskirts of the city where resettled farmers are clearing the land to build their homes.”
With 56 percent of Zimbabweans living on less than $1.25 a day and unemployment as high as 80 percent, many people regard trees - even those on residential properties - as a potential source of income.
Concerned with making a comfortable living, Ndlovu doesn’t worry that he and other firewood vendors might be contributing to deforestation in the southern African nation.
With no respite from the energy crisis, up to 90 percent of Zimbabweans now rely on firewood for cooking, a huge leap from around 50 percent two decades ago, according to non-governmental organisation Environment Africa.
Some 70 percent of the population resides in rural areas, where firewood has long been the primary source of energy.
“I have never thought about the implications of cutting down trees. What I know is that another tree will grow, because our ancestors found these trees there,” Ndlovu says.
It is a common response to recent campaigns launched by the government and environmental groups to curb uncontrolled logging.
THIRD OF FORESTS LOST
The parastatal Forestry Commission estimates deforestation at around 330,000 hectares per year. Between 1990 and 2010, Zimbabwe lost more than 30 percent of its forest cover, according to commission data.
As its forests shrink, Zimbabwe has yet to confront the far-reaching ramifications of its energy crisis.
“It’s one of the challenges that has the ministry (of environment) in a tough spot because you cannot tell people to stop cutting down trees without providing a solution to their energy demands,” explains Kurauone Muringapi, a field researcher for the Ministry of Environment and Natural Resources Management.
“There is no doubt that, despite not being an industrialised country, our contribution to carbon emission concerns increases when there are no forests to talk about,” he adds.
Gilmore Sadza, an environmental consultant working with the ministry, says the government has been slow to join international efforts to combat deforestation.
“The wanton cutting-down of trees was ignored around the year 2000 when people moved into white farms and conservation areas,” Sadza said.
“Climate change was never seen as an urgent matter, but at least now we are seeing some moves to address it, despite the obvious challenges,” he said.
In 2011, officials began crafting a comprehensive climate change policy in collaboration with the Climate and Development Knowledge Network (CDKN), which is funded by the British and Dutch governments.
And last month, the ministry gazetted new, stringent regulations on illegal logging in a move to curb deforestation. Among others, they target farmers who have been fingered for some of the worst abuses of Zimbabwe’s forests.
The country will also have to deal with the consequences of smoke and other emissions from domestic cooking fires, as well as wildfires which have become an annual phenomenon here.
Zimbabwe’s carbon footprint, like that of many African nations, remains tiny compared with developed countries.
Nonetheless, its current energy crisis could contribute to climate shifts that will affect future generations – not least because cutting down forests means fewer trees to store carbon dioxide, the main greenhouse gas causing global warming.
Zimbabwe is already seeing changes in the patterns of its seasons, lower rainfall and higher temperatures. But strategies to reverse deforestation could help reduce the risk of these trends getting worse, believes Simon Gapare, a Zimbabwean environmental researcher based in the United States.
“It’s time initiatives like the National Tree Planting Day were taken seriously. If you ask anyone you know if they have ever planted a tree, you will be disappointed,” he says.
On the first Saturday of December each year, Zimbabwe marks National Tree Planting Day, with the president leading the commemorations.
“Many people don’t bother about these things, but solutions to climate change do not reside in conferences or textbooks, but right among us – (in) our own practices relating to how we treat the natural resources around us. Planting a tree is one such solution,” Gapare argues.
The private sector has also started to launch reforestation initiatives.
For example, Nyaradzo Funeral Services, a company based in the capital Harare with branches across the country, plants a tree for each burial it conducts and gives families trees to plant after relatives’ funerals. It is hoping to plant 500 million trees by 2025.
For firewood vendors like Ndlovu, participating in reforestation efforts could prove profitable in the long run. But with customers lining up to get their hands on an increasingly valuable source of energy, the issue of whether the business is sustainable isn’t a priority for most.
“This is my way of life - as long as there is demand for firewood, I will keep selling,” Ndlovu says.
Madalitso Mwando is a journalist based in Harare, Zimbabwe.
ZPC urges industry to work at night
August 12, 2012 in Business
By Kudzai Chimhangwa
THE Zimbabwe Power Company (ZPC) has urged the manufacturing industry to
take advantage of the excess power available at night after peak power
demand hours for production.
Speaking at a media briefing last week ZPC chairman Richard Maasdorp said
industry must take advantage of the abundant electricity available during
the night to produce goods and commodities without disruptions.
“This will go a long way towards saving the energy available and providing
industry with the electrical power they need,” he said.
Manufacturing companies have for long bemoaned the incessant power cuts
saying they were disruptive to their business.
Speaking at the same event ZPC general manager for projects, Engineer
Washington Mareya said the company had embarked on expansion projects for
the Hwange and Kariba South Extension un
its in a bid to meet current and future electricity demand.
However, funding has proved to be a major hurdle as investment has not been
Mareya said Zimbabwe faced an acute power shortage which dates back to the
year 1992 when the country began facing a net power deficit.
“The situation worsened in the year 2007 when the Southern African Power
Pool also began facing a net energy deficit,” he said.
“Because our demand far outstrips our generation capacity, it is imperative
that we embark on an aggressive generation expansion drive in order to meet
The projects are being implemented in four phases namely review phase,
engineering phase, construction and commissioning phase and the warranty
Hwange 7 and 8 units are expected to be upgraded to 600 MegaWatts (MW) at a
cost of US$1,83 billion while the Kariba South 7 and 8 units would be
upgraded to 300MW at a cost of US$771 million.
However, funding has continued to be a major stumbling block towards the
timely completion of projects.
Mareya said that the mini-hydro power plants would be prioritised under
These include the Gairezi to produce 30MW at US$90 million, Mutirikwi to
produce 5MW at US$10 million and Manyuchi to produce 1,4MW at US$3 million.
The review phase which involved feasibility studies was completed as at June
2011 while the engineering phase started concurrently with part of phase 1.
“Evaluation of tender documents is in progress and selection of suitable
contractors is expected to be finalised in October 2012. Contract
negotiations are expected to be concluded in December 2012 to January 2013,”
The construction and commissioning phase is expected to begin around mid-
2013 and is projected to take three and half to four years.
The World Bank recently recommended that government launches an electrical
power demand-side management programme designed to encourage consumers to
use less energy during peak hours.
The bank also encouraged users to move the time of energy use to off-peak
times such as nights and weekends.
The energy crisis has negatively affected the country’s hopes for a
sustained economic growth, as load shedding and high tariffs have caused
disruptions to productivity in the manufacturing and mining sectors.
Thermals at most of the power stations in the country are more than 40 years
old while the last power station ever put up in the country was in the
Power shortages to worsen: ZESA
by Staff Reporter
THE Zimbabwe Electricity Supply Authority (ZESA) has warned that power
supply interruptions will increase over the next three months due to
maintenance work at Hwange thermal power station.
The power station generates about 500MW but maintenance work to increase
capacity would temporarily result in the loss of 160MW over the next three
months, ZESA spokesman Fullard Gwasira.
“Zesa Holdings would like to advise all its customers countrywide that
Hwange Power Station will be undergoing its scheduled mandatory statutory
maintenance to ensure the continued operational efficiency of that
generating asset,” Gwasira said.
“The scheduled maintenance will commence on Saturday 11 August 2012
(yesterday) and be completed in November 2012. During this period, a total
of 160 MW will be lost to the national grid.”
Gwasira said the ZESA was working to step up imports from the region to
mitigate the supply interruptions.
Zimbabwe needs about 2,200 megawatts of electricity at peak consumption but
generates just below 1,300 megawatts, while efforts to plug the gap with
imports are often undermined by non-payment for supplies.
Supplies are currently being rationed between both commercial and domestic
Although the government is planning various projects to step up power
generation a senior official recently warned that the shortages would likely
continue for another ten years.
"By 2022 that's when we will be able to generate enough power for domestic
and industrial power. (But) most of our woes in terms of blackouts will end
in 2015," Patson Mbiriri the permanent secretary for the energy minister
told a recent industry conference.
Legislators recently expressed concern over the impact of power supplies
shortages on the country’s struggling economy.
“We have failed to come up with indicators just to say there will be
something in two years and in two years this country will have enough
energy. Yet Cabinet meets every week, Ministers are in their offices every
day and one wonders what is really happening,” said Goromonzi North MP Paddy
“How do we turn around the economy with energy shortages? Mining,
agriculture . . . all need energy. We are dealing with an economy that
hinges its turnaround on agriculture and mining all need energy yet this was
Zimplats lends ZESA US$25 million
by Roman Moyo
PLATINUM miner, Zimplats advanced a US$25 million loan to ZESA which the
power utility used to reduce its indebtedness to Mozambique’s Hidroelectrica
de Cahora Bassa, enabling the resumption of power imports.
The Mozambican company had cut supplies to Zimbabwe after ZESA failed to
reduce its mounting debt but the facility extended by Zimplats would enable
power imports to resume.
Zimplats said, in return, ZESA would guarantee power supplies to its
operations for three years.
“During the quarter, Zimbabwe Platinum Mines (Private) Limited advanced a
$25 million loan to the power utility ZESA which was used to reduce the
utility's overdue indebtedness to Hidroelectrica de Cahora Bassa of
Mozambique in respect of power imports,” the company said in its latest
“The loan facility enabled Zimbabwe to resume power imports from Mozambique
to augment the country's constrained power generation.
“The loan principal and interest were converted into power units which will
be redeemed over three years. In return, Zimplats is guaranteed
uninterrupted power supplies for its operations for five years.
Meanwhile Zimplats posted a 52% drop in operating profit in the fourth
quarter to June, due to weaker platinum group metal prices.
The company said operating profit was $25m, down from $52m in the previous
quarter as metal prices were depressed during the period while operating
costs rose 17%, in line with higher sales volumes.
“Operating costs were 17% above previous quarter in line with the higher
sales volume. In addition, the first tranche of $3.3 million was paid to the
Community Share Ownership Trust in terms of an undertaking to make available
to the trust, $10 million over a three year period,” the company said.
“Royalties continue to be accounted for at the higher rates set in terms of
the Finance Act whilst the company awaits resolution of the dispute which is
currently before the courts. As a result of the above, operating profit
amounted to $25 million, 52% lower than the previous quarter.”
Zimplats, which is 87% controlled by Implats , said in March it had agreed
to a deal that would see it comply with Zimbabwe’s requirement that 51% of
shares in Zimplats be held by locals.
The firm said it was in discussions with the government over the
implementation of the ownership agreement.
“A Joint Technical Committee comprising Government of Zimbabwe
representatives and management has been set up to work through material
issues pertaining to the agreement. Discussions are on-going and
shareholders will be updated on major developments," the company said.
Zimbabwe power cuts to persist for 10 years: official
Zimbabwe power cuts to persist for 10 years: official
(AFP) – 6 hours ago
NYANGA, Zimbabwe — Energy-starved Zimbabwe will suffer longer and more
frequent power shortages for the next 10 years, a senior official said
The country's power utility will extend blackouts until it can boost
capacity, Patson Mbiriri, secretary for energy and power development, told
an annual congress of the Confederation of Zimbabwe Industries.
"By 2022 that's when we will be able to generate enough power for domestic
and industrial power," Mbiriri said.
Zimbabwe needs about 2,200 megawatts of electricity at peak consumption but
generates just below 1,300 megawatts, while relying on imports to fill the
Due to ageing equipment, power generation is often disrupted following
breakdowns. In most cases, the generators operate below capacity.
In recent months, Zimbabwe could only afford to import 25 megawatts from
nearby countries after major electricity suppliers in the region turned off
the switches over non-payment of dues.
"Most of our woes in terms of blackouts will end in 2015," Mbiriri said.
Energy Minister Elton Mangoma recently said Zimbabwe has whittled its debt
to power providers to under $20 million from around $100 million in a bid to
There are plans to revamp the northern Kariba hydro-power station and the
Hwange thermal power station in the west of the country.
Power cuts hit mobile operators
Saturday, 21 July 2012 19:00
BY MOSES CHIBAYA
MOBILE operators say the use of generators to run base stations during power
cuts had increased operational costs, affecting their profit margins.
The country is experiencing debilitating power cuts as demand has
outstripped the generation capacity. The power utility is generating 1 100MW
against the required 2 200MW.
Giving oral evidence before the Parliamentary Portfolio Committee on Media,
Information and Communication Technology last week, Econet CEO, Douglas
Mboweni, said the US$0,20c per minute tariff offered was arrived at after
factoring in all the costs involved. Mboweni said the major cost that was
driving their tariff up was fuel, used to run generators.
“Electricity is a huge cost to us, the cost of generators and the cost of
refilling is estimated at over US$15 million per year,” Mboweni said.
The Econet boss said about 72% of the network at any given time would be
running on generators.
In a separate presentation interview before the same committee, Telecel
chief executive officer, Francis Mawindi, concurred with Mboweni and also
bemoaned electricity woes as the major barrier.
ZESA employees suspended over salary fight
By Alex Bell
17 July 2012
More than 130 employees at the national power supply authority ZESA, have
been suspended, after threatening to strike last week over the utility’s
failure to award pay rises.
The Zimbabwe Energy Workers’ Union (ZEWU) a week ago issued an ultimatum to
ZESA and other private players, to either meet their demands or face a
nationwide strike. The workers want the salary increase that was meant to be
awarded to them after a legal dispute in June.
ZEWU President Angeline Chitambo told journalists in Harare last week the
Union grouping had resolved to embark on the strike, accusing ZESA chief
executive Josh Chifamba of not honouring an arbitration order from last
month. The order promised a new salary structure would be awarded to the
energy sector on June 18th.
But instead of honouring the order, ZESA has suspended 132 employees without
pay or benefits. The Progressive Teachers Union of Zimbabwe (PTUZ), which
voiced solidarity with the energy workers, said: “Such a primitive and
barbaric way of handling labour disputes, reminiscent of the colonial era,
must be condemned with the contempt it deserves. We want to reiterate that
these workers have a legitimate expectation which must be respected both as
citizens and workers,” the PTUZ said.
Ministerial statement on power crisis
by Hon. Elton Mangoma
Ministerial Statement by Energy Minister Elton Mangoma to the House of
Assembly on measures being taken by the government to ease the country’s
power crisis. Delivered on Thursday, July 12, 2012:
Mr Speaker Sir, I have found it necessary to brief this House of elected
representatives on what we are doing in the Ministry to ease power outages
in the country.
Zimbabweans across the country and in all spheres; from housewives to
business people, have a sad story to tell about the power cuts they
experience every day in their homes and in the factories.
Mr Speaker Sir, it is the duty of government to explain the measures we are
taking to alleviate the plight of the people. The solution might not come
tomorrow, but the people of Zimbabwe deserve to know that we are working
flat out to mitigate the situation which deteriorated way back due to
non-investment in this critical sector. There was no way we could resolve in
three years a decay process that began decades ago.
Nevertheless, I rise to make public our efforts in redressing this national
It is a challenge that has affected a cross section of people from the big
corporates in Harare and Bulawayo to clinics and health centres in
Chendambuya and Gokwe; from schools in Filabusi to the ordinary power
consumers in Budiriro and Pumula.
Mr Speaker Sir, it is no laughing matter; but they say the most popular
words in Zimbabwe are “Magetsi auya”. As government and as a Ministry, we
are aware of the mammoth task before us and we want to assure you that we
will discharge of our national duty to the best of our ability.
The power supply in the country is inadequate leading to massive load
shedding in all the sectors. This is on the backdrop of:
# No new generation capacity having been created in the country since 1984.
# A serious shortage of capacity in the region because of increased demand
in their countries coupled with no new investment.
# Lack of maintenance, particularly from 1998 to 2009 leading to serious
degeneration of both Generation and Transmission and Distribution
# Low and unviable tariff over the past decade (some correction made in
# Low funding from Treasury and high level of debtors.
# The economic revival has put pressure on the demand for electricity and
particularly on domestic consumers, who had absorbed the electricity that
was available from Industry and Mining.
MEASURES BEING TAKEN
The measures being taken are divided into Generation capacity and supply
side activities, Demand Side Management and Institutional changes. All these
will work towards alleviating load shedding and increasing the power for
enhanced economic activities. The supply side is further split into short,
medium and long term measures.
GENERATION CAPACITY AND SUPPLY SIDE ACTIVITIES
Short term (900MW)
Optimisation of Hwange Power Station (250MW)
Mr Speaker Sir, Hwange Power Station has an installed capacity of 950MW. It
however has been producing between 300 to 500 MW. This is a result of poor
maintenance, and lack of alignment of the production facility.
For example, the stage two turbines (generations) have a capacity to
generate 220MW each, but the boilers are such that you can generate around
150MW. Improving the boilers can increase the capacity to 200MW each. Work
to identify what needs to be done is underway.
Poor maintenance management is exemplified by the current saga on units one
and two where we had the rotors down and management concentrated on getting
them fixed without attending to ancillary equipment at the same time. Now
the rotors have been repaired, but work on the stator only commenced last
month. Measures are being put in place to avoid such sloppiness including
skills enhancement and greater team work.
Repowering Small Thermals (120MW)
All the small thermals can produce, with constant coal supply 200MW,
compared to the current 60-80MW. Short term coal supplies can be increased
by more cooperation and minimal investment at Hwange Colliery Company (HCC),
so that they produce the required type of coal.
Immediate steps are being taken to modify the boilers, so that they can use
the same thermal coal as Hwange Power Station. This is an 18-month
programme. ESSAR will lease Munyati Power Station and they have indicated
that they can make it produce 140MW.
Gairezi Hydro (30MW)
ZPC has applied for a licence to construct the Gairezi hydro scheme. This is
estimated to cost $90 million and the project will take 18-24 months. The
licence will be issued this month and finances are being arranged. It will
be necessary to work with OPC to avoid the delays of the State Procurement
Lupane Coal Bed Methane (500MW)
Mr Speaker Sir, there is need to map and determine what resource there is in
Lupane. This is then followed with the construction of a gas fired plant in
Lupane. The first phase involves the drilling of exploratory wells. As soon
as these wells are drilled, instead of closing the wells or flaring the gas,
the gas will be directed to a series of machines that generate between
5-10MW. These machines will be hired from Agreko. It becomes possible to
generate electricity almost immediately after the wells are drilled.
After mapping and determination, a mining plan is then determined. The
mining plan is then executed taking into consideration the level of resource
and what it will be used for. The current proposed uses are electricity
generation and fertilizer production.
Mining can start immediately after resource mapping with the gas from the
mining wells also being directed to more hired machines. This term is called
Temporary Generation. These will only be removed after the commissioning of
the Permanent Plant.
There are three parties already interested in the resource mapping and
determination phase, who will do it on behalf of ZPC. Funding has already
been secured for this phase.
Solar Into Grid (100MW)
The main thing that makes solar technology more expensive is the need to
produce and store during the day for use at night, when you cannot produce.
The current situation is that electricity is short during the day so there
is no need to produce and store. Generating without storing will bring the
tariff to between 10c-12ckwh, which is within the current tariff structure.
Solar plants can be put up very quickly. Current discussions are centering
# Should this be one plant or a number of them.
# Signing of Power Purchase Agreement (PPA) to buy all the power produced
for a fixed period (consideration between 5-10 years).
The main issue is acceptability of Zimbabwe Electricity Transmission and
Distribution Company as a party to the PPA.
Solar Panels on Homes
Mr Speaker Sir, we have currently agreed with a housing cooperative in
Mutare that they put solar panels as part of their roofs. The electricity so
generated will be used within their homes and the surplus fed into the grid.
At night the homes will then be supplied by ZESA. At the end of the month,
the account will then be settled depending on the power produced and
consumed. The flow of electricity will be measured using a Reverse Meter.
This policy can be extended to anyone although it may be more applicable to
new housing complexes as the panels will be part of the cost of the roof,
and therefore no extra investment required.
There is a programme under Rural Electrification Agency (REA) to produce
solar lamps locally targeted to retail at $10 or less. REA is working with
local industry to make sure there is significant value addition in this
project. It will then lead to localisation of technology and job creation.
Designs are at an advanced stage.
Treasury has provided $1,5m to this project, which will enable particularly
school children to buy these lamps in instalments. The lamps are earmarked
for rural schools. The involvement of industry means that a lot more solar
lamps can be produced for commercial purposes to be made available to the
generality of the public. These solar lamps are a good source of lighting
when the electricity goes out.
Mr Speaker Sir, Zimbabwe used to import as much as 500MW firm power from
SNEL, EDM, HCB and ZESCO. At the moment the only firm power is 100MW from
HCB. The demand for electricity within the region has been growing, to a
point now where whatever can be produced is utilised. The likely immediate
source of imports is EDC and HCB. Negotiations are underway.
Botswana is likely to commission a power plant soon. EDM is being persuaded
to export to us the power (50MW) they are currently exporting to Botswana.
Zambia is likely to commission Kariba North expansion next year and dialogue
is taking place now.
Mozambique is planning to do Temporary Generation at their Southern Gas
fields and this will add additional generation. We have registered our
interest. Payments done to reduce our debt make us worth considering.
DEMAND SIDE MANAGEMENT
The tender board awarded tenders to:
# Solahart Zimbabwe (Pvt) Ltd (Zim)
# Nyamezela Consulting Engineers cc (RSA)
# ZTE Corporation (China)
# Finmark Marketing (Pvt) Ltd (Zim)
These tenders exclude Harare and Bulawayo, which are the two places with the
greatest need. The tenders are for supply and fix. Contracts signed are to
ensure that those who quickly install their meters are allowed to install
additional ones so as to roll out as quickly as possible and not be held by
laggards purely on the basis that they won a tender. It is proposed to use
the same tender winners on the same performance basis for Harare and
The roll out is expected to start next month (June 2012) and be completed
within 10 months. The current prepaid meter platform is being upgraded to
handle different types and increased number of meters.
Prepaid Meter Platform Tender
Mr Speaker Sir, a tender was floated, adjudicated and awarded to REVMA. The
adjudication process was fraudulent. All other tenderers who proposed
external hosting were disqualified as it was a specific requirement that the
platform be based at ZETDC. The adjudicators knew but presented REVMA as a
direct supplier until the contract signing stage when REVMA wanted to be
paid 60 cents per transaction.
Discussions with State Procurement Board (SPB) indicated that REVMA had not
misrepresented their position, but that the adjudicators had falsely
misrepresented the facts. As a result SPB could not reverse their award. The
only recourse is for ZETDC to approach the Administrative Court for the
nullification. ZETDC has now been directed to approach the court. Any award
must now be based on those who show on the ground that they have a system
Compact Florescent Lamps (CFLs)
The contract for the supply of CFLs has finally been signed (21/05/12). It
is hoped that the first batch of one million lamps will be delivered on 30
June 2012. Installation of the lamps will commence around mid-July.
The installation of the 5,5 million lamps, estimated to be completed by
October 2012, will save evening peak electricity equivalent to 180MW.
Mr Speaker Sir, biogas is a sustainable, environmentally friendly source of
energy. It is mostly used for heating and cooking purposes, and thereby
releasing electricity for other purposes. A Zambian expert has been engaged
for the purposes of technology transfer through the construction of
prototype digesters. Three sites that have been identified are:
# Mbare Musika – Vegetable market
# Harare Hospital
# Roosevelt Girls High School
There is need to identify two other users covering:
# Farm environment
# Domestic dwelling
The work on all these prototypes is expected to commence in June.
Local constructors are expected to gain knowledge and insight into the
construction for future propagation. Treasury budgeted $1,5 million for this
purpose. The funds are sufficient to cover other educational and health
institutions in all the provinces. REA is the implementation agent.
The residue after the gas has been used is very good organic fertilizer.
Local industry is being involved in the manufacture/adaptation of gas
stoves. The cooking system at Harare Hospital will be completely revamped.
Hwange and Kariba Expansion Projects (900 MW)
Hwange (600MW) and Kariba (300MW) expansion projects are currently being
tendered for. The tenders are due to close on June 5, 2012. (Been advised
SPB moved closing date to July 3, 2012). There are now four (4) tenderers
for each project. The main issues to be considered are:
# The availability of funding to carryout projects. An alternative plan to
fund Kariba South expansion has reached an advance stage.
# The technology to be used to create the cavity at Kariba – the type of
blasting/drilling – due to the weak rock formation.
# The Ministry of Finance had written advising abandoning the tender process
at Kariba in favour of Sino hydro, following the agreement they signed with
China. It is recommended to carry through with the tender as scrapping it
now could cause legal complications and further delay the project.
The projects are expected to take around 48 months.
Hwange-Western Areas (1000MW)
Mr Speaker Sir, this is a new project that will result in the construction
of a coal fired power station in the Western Areas Coal fields. The Western
areas coal fields concession was granted to ZPC by Cabinet in July 2010 for
the purposes of attracting investors into power generation.
Promising negotiations are underway with China Railways International (CRI).
The main issues are:
# That the power plant will belong to ZPC 100%
# That a mining venture is formed between ZPC and CRI
# CRI will operate the power plant for the benefit of ZPC until the loan has
It is estimated that the power plant will take around 3-4 years to
construct, after a 6-12 month period of surveying and designing.
Independent Power Producers (IPPs)
A number of IPPs have been licensed. The three big projects are Sengwa
(2400MW) Lusulu(2000MW) and ESSAR (600MW).
Bindura Gas Plant (2200MW)
Mozambique has discovered vast natural gas quantities in the Rovuma Basin.
We have expressed our interest to have access to the natural gas.
The idea is to pipe the gas from Rovuma Basin, through the bridge at Tete to
Bindura. A gas fired power station is then constructed in Bindura and feed
into the Bindura-Songo transmission lines (This is similar to what Ghana has
done with the Nigerian Gas).
The gas pipeline then extends to Harare, where it will be piped to the
residential areas for cooking purposes, (like in most of the developed
countries). This whole plan can be replaced by the Lupane CBM depending on
the quantum of the resource.
Mr Speaker Sir, Zambia and Zimbabwe agreed on February 10, 2012, to embark
on the Batoka hydro project with a total capacity of 1600-2000MW. It was
agreed to proceed on a BOT basis under the leadership of the Zambezi River
Authority (ZRA). Zimbabwe agreed to pay Zambia $70.8million for the CAPCO
assets. $10m has since been paid. Interest has been agreed at $114 million
and there is no repayment plan. Zimbabwe has already asked Zambia for
interest not to be paid.
A detailed geological survey was done in 1994. It may be necessary to carry
out some confirmatory geological survey, together with an Environmental
It is envisaged that the ZRA in consultation with the two countries will
finalise the BOT framework soon so that they call for interested parties to
put forward their proposals. The main issues to be considered are the legal
and commercial issues and leave room for the interested parties to compete
on issues like design and technology.
The Great Inga
The Great Inga hydro project is proposed on the Congo River in the DRC. This
can produce upwards of 40,000MW. 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. It requires strong leadership and project
design skills to make all the political leaders comfortable with the
project. Hydro power is cheap and it is worth the time spent on promoting
OTHER INSTITUTIONAL ISSUES
Mr Speaker Sir, the funding of ZESA by Treasury has been minimal, despite
the provisions that have been made in the budget. A verbal agreement has
been reached with the Minister of Finance to deduct the subsidy to Sable
Chemicals and Government’s indebtedness to ZESA against the funds paid by
The Zimfund promised some $30m as urgent intervention. This money was paid
in by the Donor countries almost a year ago. No disbursements have been made
Restructuring of ZESA
Mr Speaker Sir, it is proposed to restructure ZESA to make it more efficient
and responsive to the consumers, whilst at the same time, setting up a
mechanism, which will make it easy for Independent Power Producers have a
level playing field.
ZESA Holdings was supposed to be only an instrument of holding shares in the
successor companies. Instead it morphed into a huge bureaucracy negating the
very point of establishing successor companies. In 2002 the Transmission
business was legislated to be separate from distribution, only to be
It is proposed that:
# 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
# ZETDC will transform to Zimbabwe Distribution Company (ZDC) and be
responsible for Distribution of Electricity.
# Each of the companies will have a separate Board which will report
directly to the shareholder.
These companies will be:
# Zimbabwe Power Company (ZPC)
# Zimbabwe Distribution Company (ZDC)
# National Grid Services Company (NGSC)
# ZESA Enterprises (Pvt) Ltd (ZENT)
Establishing an Electricity Industry
Almost 90% of all the spares and services to ZESA are from outside our
borders. There is no doubt that the engineering capacity at Independence was
so high and yet we are not reviving it. Local content of Hwange Power
Station was over 50%.
ZESA has been a major consumer and the spending power it has can be used as
a catalyst for the revival of the local electricity industry. On top of
this, our own engineers have excelled in the region and beyond.
Mr Speaker Sir, this requires deliberate targeting and formation of
partnerships. ZENT has been improving its manufacturing capacity, for
example, they now can produce 500 transformers per month. We can therefore
not allow transformers from outside at the expense of knocking out this
In the same vein, ZPC organised a workshop with the local industry so that
they can hold each other’s hands as they build the industry together. This
requires flexibility in the rules of the SPB.
The projects listed under IPP indicate that even if a quarter of them are
realised, it is a lot of work. This is the time to ensure that the capacity
is here to tap and localise the investment resource whilst at the same time
creating the much needed jobs.
Creating local capacity will also reduce the time it takes to carryout
repairs. For instance, generator 3 at Harare Power Station has been out for
more than a year, with the rotor alignment waiting for its turn in South
Africa. We need to empower our people by making them partners in the supply
of services and spares.
POLICY DOCUMENT LAUNCH
In early 2010, Cabinet approved the Energy Policy document. Over this period
series of workshops have been held with stakeholders in order to refine the
policy and prepare for implementation. The product of those consultations
has been completed, thanks to the assistance by UNDP.
It is planned to launch the document in July.
Mr Speaker Sir, I wish to assure the House that we are aware of the plight
facing the people of Zimbabwe. We share with them the grief and misery of
not having a reliable power supply.
I pledge to be making these ministerial statements to update the public on
the progress in instituting these measures. We owe it to the people of
I Thank You!
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