adminSpeaking on the sidelines of the second stakeholders’ workshop for the cost of supply study for the electricity supply industry, Zera chief executive Eng Gloria Magombo said financial constraints stood in the way of adequate power supplies.
“A current analysis of the 2013 projections shows that a revenue requirement of about US$1,2 billion is required to maintain current capacity and levels of production but due to efficiencies the figure can actually go down to about US$900 million,” she said.
Eng Magombo added there was need for more investment in the power production sector and that about US$4,8 billion was needed across the supply chain for generation, transmission and distribution of electricity, with US$2,5 billion to account for generation alone.
“In order to mitigate the power challenges we are currently facing, there is really an urgent need for new investment to come in so that we can bridge
the gap between demand and supply until 2017, when we expect our own capacity to have improved to levels that can satisfy and sustain our requirements,” she
said.
A number of independent companies have been licensed to generate and transmit power meant for their own consumption and these include Chisumbanje Green Fuel, Hippo Valley and Triangle.
Other independent power producers issued with licences are Essar Africa Holdings, China Africa Sunlight Energy and Manako Power.
Although it is reported that these power producers do not contribute much to the total needs of the country, their contribution is commendable as the supply-demand gap is wide as it stands at between 100 and 300MW, largely depending on the availability and output at Kariba and Hwange.
“We are also looking at importing additional power from within the region, and Mozambique is one of our targets because they generate hydroelectricity which is cheaper. By the time we reach 2017, as provided for in the cost of supply survey, I am sure Kariba will be in a position to come in and augment (supplies),” said Eng Magombo.
Kariba is expected to have been fully refurbished by 2017 when it is anticipated to significantly contribute to the national peak demand of 2 200MW, up from the current 1 300MW.
The power regulator also recently confirmed receiving another application for a licence from Lurosa Investments (Private) Limited who want to construct a two-megawatt power station in Chimanimani.
Consumers have been warned against expecting any downward review of tariff charges in the interim as the supply-demand gap is unsustainable at present.
This comes in the wake of the pending hearing in the Supreme Court where Zera and ZETDC are challenging nullification of the 31 percent power tariff increase approved last year.
The Confederation of Zimbabwe Industries contested the new tariff on the basis that when it was approved, the Zera board was not properly constituted as required by law.
Online Reporter