Online Reporter
Fairness Moyana in Hwange
INDEPENDENT power producer Zimbabwe Zhongxin Electric Energy (ZZEE) is set to embark on the second phase of its thermal power project in Hwange, aiming to add an additional 50MW, which will increase output to 100MW.
The thermal power project is producing 50MW under its first phase, and will see the construction of two 25MW units in the coming months.
The initial phase of the project came online in two stages — 25MW in September 2021 and another 25MW in October 2021. Ultimately, the company targets to reach 300MW.
Speaking during a recent visit by officials from the Office of the President and Cabinet, ZZEE general manager Mr Sun Qing Shain confirmed the company’s application for land to facilitate the expansion.
“We have just applied for land to embark on the expansion project where we want to build a 50MW power station under the second stage,” he said.
“In addition to that, we are awaiting designs for actual construction to commence.”
ZZEE has long-term expansion plans under its Phase II and III stages, which include the addition of two 135MW units and two 300MW units respectively. However, these plans have been shelved due to financial challenges.
“We have been facing a few challenges, mainly cash flows. Delays in payment for power deliveries have not only stalled expansion plans but also negatively impacted on our ability to meet our financial obligations. This is not good for business as it erodes investor confidence,” Mr Sun added.
The company revealed that it had hoped to begin construction two years ago but the late payments were affecting it.
Despite these hurdles, ZZEE is forging ahead, buoyed in part by parallel investments in other projects.
In response to concerns over air pollution, ZZEE has invested US$2 million in environmental control measures, including the installation of gas emission technology aimed at mitigating dust and ash emissions. Additionally, ash by-products from its coal power generation process are being supplied for free to a nearby cement factory.
The company’s sister firm, Zimbabwe Zhongxin Coking Company (ZZCC), is also making strides in establishing a coal processing plant near the power plant. The project has employed 100 locals and is expected to go commercial this year, with potential revenue being earmarked to support the power plant’s expansion.
“Construction of our coke processing plant is at an advanced stage and we hope to use some of the money from this project to fund the expansion of our electricity generation,” said Mr Sun.
Meanwhile, Zimbabwe’s overall electricity supply has seen a significant improvement, rising to above 1 400MW from around 900MW in previous weeks, largely due to increased generation at Hwange Power Station.
