Govt considers IPP licences withdrawal

Africa Moyo
GOVERNMENT is considering withdrawing operating licences for Independent Power Producers (IPPs) whose projects are failing to take off.
The Zimbabwe Energy Regulatory Authority (Zera) has licensed 21 power projects, of which 18 are IPPs and three are State-owned.
All licenced IPPs have the capacity to generate more than 7 500 mega watts (MW), which is 5 300MW more than the national demand of 2 200MW.
Only seven IPPs are presently operational.
Duru is generating 2,2 MW; Nyamingura (1,1MW); Pungwe A (2,75MW) and Chisumbanje Power Plant (8MW).
Triangle Limited, which has an installed capacity of 45MW and Hippo Valley (33MW), are generating power for own consumption using bagasse.
Chisumbanje is consuming about 4MW at its ethanol project.
While the bulk of the country was smarting from unremitting power cuts until early this year, Mutasa district, which is being fed power by the Duru plant, has never had power outages, highlighting the capacity of IPPs to wean off more areas from the grid.
RioZim, which was licensed to generate 2000MW about 12 years ago, is still to resume generation in Sengwa due to a slew of challenges, including cash shortages.
Permanent Secretary in the Ministry of Energy and Power Development, Mr Partson Mbiriri recently said there was need to locate ways of ensuring that all IPP licenses were utilised given the centrality of power to economic transformation.
Availability of power is considered “one of the key issues” investors look at before committing their funds into an investment destination.
“My Ministry notes with concern that of the 21 licences issued to Independent Power Producers, only seven are operational. Some of the IPP licences are over three years and there is nothing on the ground to show the nation progress being made towards generating power.
“In the regulator’s register, the number of licences is growing, yet there is no corresponding number of projects getting to fruition.
“(The) energy sector is no doubt a capital intensive venture, hence licence holders should not continue holding the licenses in perpetuity.
“As a country, we need to have some comfortable level of supply from local sources before resorting to imports,” said Mr Mbiriri.
Despite challenges faced by other licensed IPPs to start generating power, Zera announced last week that two other IPPs have applied for licences to “construct, own, operate and maintain” power plants that have potential to feed 7,2MW into the national grid.
One of the IPPs, Richaw Solar Tech (Private) Limited intends to establish a 5MW solar photovoltaic power plant.
The solar project will include the construction of a 2km overhead 33kv transmission line to Eagle Vulture 132/33kv substation.
Hauna Power Station (Private) Limited is also seeking to set-up a 2,2MW mini-hydro power station on Ngarura River, a tributary of Honde River in Mutasa District, Manicaland Province.
Zimbabwe has embarked on a number of projects, which, if implemented, would generate over 10 000MW.
This would turn the country into a net exporter of electricity.
Currently, Zimbabwe is enjoying decent electricity supplies owing to imports from South Africa (300MW) and Mozambique (50MW).