Firm forecasts on Zim electricity

enhancing the capacities of the country’s electricity industry, business research and consulting firm Frost & Sullivan has said.
In respect of energy industries, Frost & Sullivan provides electricity demand forecasts, analysis of key industry participants and comprehensive examination of the development of key projects in the sector among other strategic services.
In its latest “Overview of the Zimbabwean Electricity Industry” report, the global researcher said the country’s coal reserves, for instance, could be used to power some of its thermal power stations.
Frost & Sullivan also noted Zimbabwe’s extensive potential for hydropower generation.
“The country has coal reserves that will approximately last the next 200 years at a production output of 5 000 tonnes per annum. These coal reserves could be used as feedstock for coal-fired thermal power stations.
“The Zambezi river, which runs along the Zimbabwe-Zambia border, has hydro potential of 5 400 megawatts, of which only 750MW is currently being utilised. Furthermore, Zimbabwe has copper and ferrochrome deposits, which can be used in pylon and cable manufacture and maintenance.”
Zimbabwe requires about 2 000MW of electricity. However, the Zimbabwe Electricity Supply Authority is currently generating around 1 100MW, which is inadequate to meet present demand let alone any further impel in economic growth.
Frost & Sullivan also said an improvement in the country’s energy sector is going to be based on a conducive macro-economic environment as well as positive investor sentiment on the country.
“There are several electricity industry projects in the pipeline that have not secured funding, and the development of these projects could improve the electricity demand and supply situation within the country,” said the firm.
Critical energy projects are being stalled by an environment facing a serious capital and credit crunch.
For example, total funding for the completion of the refurbishment of the Hwange Power Station is estimated at around US$100 million, with a financially-hamstrung Zesa supposed to meet the balance from the US$25 million allocated in the 2011national budget.
Keen potential investors in the country largely seem to have taken a wait-and-see attitude before making significant investments as a result of prevalent international perceptions of the country as a high risk business environment.
In a related matter, Vice President Joice Mujuru lamented the lack of tangible outcomes at projects being developed by the licensed independent power producers. She was addressing participants at a business conference held concurrently with the Zimbabwe International Trade Fair earlier this month,
The two major IPP projects that have received State approval are the 2 400MW Sengwa thermal power station being developed by RioZim with a projected value of US$3.6 billion, and the 2 000MW Lusulu thermal power plant that is expected to cost around US$3 billion.