adminBusiness Correspondent
A SIX-million dollar Hauna Power Station hydro-electricity project expected to generate 2.3 Megawatts is in the pipeline this year.
The project will add to the 21.05MW already being supplied into the national grid from hydro-projects in Mutasa District. Nyangani Renewable Energy, a subsidiary of the Honde Valley tea and coffee farming and processing company, Eastern Highlands Plantations Limited, has been setting up hydro-power projects in the district as an independent power producer since 2008. NRE projects engineer, Rob Goddard last week said they were about to complete the Pungwe C 3.75MW hydro project.
The Hauna Power Station will become the sixth hydro project by NRE since 2008 after the Nyamangura (1.1MW), Pungwe A (2.75MW), Dururu (2.2MW), Pungwe B (15MW) and the soon to be commissioned 3.75 Pungwe C project. All the five complete projects amount to $60 million.
The renewable energy firm, however, also revealed that it would also expand into solar energy projects this year, expecting to conduct their pilot project in Harare.
“The hydro projects started in 2008 from a need to generate reliable electricity for our parent company, Eastern Highlands Plantations Limited, during the excessive load shedding period. We have, however, now expanded as an IPP and make use of the many water bodies in the district, also creating employment for locals in the process. All the power generated is sold to the national grid through the Zimbabwe Energy Regulatory Authority,” said Eng Goddard.
Speaking during the tour of the projects last Wednesday, Minister of State for Manicaland Provincial Affairs, Cde Mandi Chimene, called for an inventory of inoperative tenders speculatively awarded to IPPs in the country.
“Why then should we have power problems in Zimbabwe with such renewable energy projects? Let us give these people (Nyangani Renewable Energy) licences and let them work especially after they have proven to be diligent. I am impressed by what I saw at Pungwe B. Let us stop the importation of energy when there are people who are capable. Government, through ZERA issued licences to a number of IPPs, some of them more than five years ago and they were supposed to have been commissioned by now, but where are they?” she said.
She added: ‘’I expect all water bodies to be fully utilised in the province especially those earmarked for hydro energy projects. I am imploring the relevant authorities to see how best to harvest the water. It goes without saying that some of the IPPs licensees are just holding on to the licences for speculative purposes.’’ She pointed out the Gairezi hydro energy project which has the potential to generate 30MW, as well as Tsanga hydro project in Nyanga, that are not functioning.
The country has been experiencing a power deficit, with daily electricity demand of 2200 MW against a dwindling installed capacity of 1100MW. The country’s generation capacity is far outweighed by demand, resulting in the shortfall being covered by imports from regional power utilities such Hydro Caborra Bassa of Mozambique.
The massive power interruptions come at a time when Zesa Holdings is seriously considering a six percent tariff hike to import more electricity and raise cash to meet operating costs. Government has however been encouraging IPPs to step in to cover the shortfall. According to ZERA by end of last year out of the 22 IPPs that were licensed, about 10, predominantly small ones in outlying areas, are operational while the huge projects that would significantly change the country’s electricity situation are yet to take shape. Minister Chimene said any significant economic growth could only be spurred by a sound power sector.
‘’The poor electricity supply is a major constraint to the country’s short-term and long-term developmental objectives given the impact it has had on the agricultural sector and industry.
‘’While agriculture is considered the backbone of the economy, the same farmers have been unable to get electricity at a time their crops needed uninterrupted power supply. Some companies have been forced to rely on generators, further increasing the cost of production and rendering their produce uncompetitive on the international market. But all this could be addressed if Government withdraws the licenses of IPPs not playing ball,’’ she said.
However, last year the Ministry of Energy and Power Development said it would this year craft an Independent Power Producer Policy to encourage participation of more producers in the sector.
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