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THE Zimbabwe Energy Regulatory Authority says it will not lose sleep over the seemingly slow pace of project implementation by private investors as development of electricity generation infrastructure is generally capital intensive globally.
Zera chief executive Engineer Gloria Magombo said it takes between three to four years to produce power after an investor has received project approval. Out of the 12 independent power producers, Zera has approved only three which are up and running while they are only able to produce a total of 6MW.
“Projects of this nature take time. Some of them are US$1 billion plus projects and require a lot of processes before they get to final implementation.”
Eng Magombo said processes for power projects start from pre-feasibility, feasibility and bankable feasibility studies to securing project finance. Thereafter, investors would also need to first sign power purchase agreements with the Zimbabwe Power Company.
However, expectations are high for private sector players that sought approval to develop power projects to contribute towards easing the power crisis with current output at 1 200MW against peak demand of 2 200MW.
Choking power deficit spawned rolling outages and rationing to balance supply and demand. It has greatly cost industry and domestic consumers. Eng Magombo recently said there are IPPs that generate electricity for own consumption alike Hippo Valley, Triangle and Chisumbanje Green Fuel. Their total installed capacity stands at 96MW and can only sell up to 12MW to the national grid.
Other small hydropower stations – Nyamingura, Pungwe A and Duru, all done by Nyangani Renewable Energy – and the power producers have a total installed capacity of 6MW. Other IPPs issued with licences and are at different stages of project development include Sengwa Power Station, Essar Africa Holdings, China Africa Sunlight Energy, Manako Power and Great Zimbabwe Hydro. These range from large coal-fired power stations to small hydros and solar systems.
Licensed IPPs operating at the moment are producing electricity for own consumption at their sugar and ethanol producing estates.
Their combined contribution to the national consumption of 102MW combine with only a maximum of 18MW exported to the grid from the co-generators during their off peak period when they produce more than they need.
The small hydro power projects only contribute a maximum of 6MW to the grid which is way too low against a national peak demand of 2 200MW.
Although small, the contribution goes a long way in assisting in electricity supply to reduce the supply demand gap that is between 100 and 300MW, depending on the availability and output and at Hwange Thermal Power Station Kariba Hydropower Stations and small thermal power projects.
Online Reporter