adminTHE Zimbabwe Energy Regulatory Authority is concerned with the slow pace at which some licensed Independent Power Producers are implementing their projects.
Zera has in recent years licensed about 12 IPPs with a capacity to generate about 5 000MW of electricity but most of them are yet operational. Zera chief executive Engineer Gloria Magombo told New Ziana that some of the projects were being affected by lack of resources.
“We are not necessarily happy but I think what is critical is that there is progress, they are doing something but the speed in which some of the projects are being implemented has been affected by their ability to access project preparation funds,” she said.
“These projects are there. They (investors) can participate, they do not necessarily have to start participating at the point of funding the main project which will require billions of dollars but they can assist at project preparation level and assist these people to access funding for them to be able to complete environmental studies, the full feasibility studies which need funding and that is where the challenges are but there are some projects which we are very happy with their progress. I think about two or three of the large ones are really moving very fast.”
Engineer Magombo, however, said of the 12 IPPs that have been licensed, six were already operational but these were smaller ones which produced electricity mostly for their own consumption.
She said these included the Chisumbanje ethanol plant, the Hippo Valley and the Honde Valley mini-hydro power plants.
“So we then have the large coal projects. Most of the coal projects are now looking at finalising their bankable feasibility studies, power purchase agreements, project development agreements, fuel supply agreements.
The issues of land allocation, the Environmental Impact Assessment Studies — all those are ongoing for those projects and they are at different stages.
“But with the smaller ones, it is different, that is why they are up and running because the levels of investment are smaller, you are looking at less than US$10 million for most of the projects which have been done and they have been able to go on the ground and they are already producing,” she said.
Zimbabwe is presently facing power shortages with the country’s main power utility Zesa Holdings generating about 1 200MW of electricity against national demand of over 2 000MW.
It imports electricity from neighbouring countries to try and bridge the shortfall. In addition to building new power sources, the country is also expanding existing generating units, including Hwange and Kariba South power plants, to increase electricity supplies. — New Ziana
Online Reporter