adminGolden Sibanda Senior Business Reporter
Zesa Holdings is discussing with Hydro Cahora Bassa of Mozambique to tie up a firm power purchase agreement for the supply of 100 megawatts.
Mozambique currently exports 50MW to Zimbabwe on a non-firm contract and Zesa is seeking to secure a 100MW firm contract for next year. The deal is meant to minimise frequent load shedding across the entire country due to limited generation capacity, which is being outstripped by demand.
Zimbabwe Electricity Transmission and Distribution Company managing director Mr Julian Chinembiri said they visited Mozambique last week to discuss the proposed power deal.
“We have an agreement for the supply of 50MW non-firm and we are talking to them to increase to 100MW on a firm contract basis,” he said.
However, he said a couple of loose ends have not yet been tied-up, but expressed confidence that the utility would come good on its efforts.
Mr Chinembiri said the firm agreement with Hydro Cahora Bassa would ensure continuous supply even when the station produces below normal.
Much of Cahora Bassa’s power generating capacity of 2 075 megawatts is sold to South Africa.
The $60 million refurbishment of Cahora Bassa in 2008, and a new five-year agreement with South Africa raised exports by 250MW, bringing the total amount to 1 500 MW.
This means that when Cahora Bassa’s generation capacity is low, the company only gives priority to SA as the contract with Zimbabwe is loose. Hydro Cahora Bassa also exports to Zambia, Tanzania and Malawi.
Zimbabwe is experiencing serious power shortage with peak period demand of about 2 200MW against average generation capacity of 1 300MW, forcing Zesa to minimise the deficits through imports and load shedding.
The country is unable to meet demand for power despite the prevailing crippling economic problems, which have resulted in low industrial production.
Demand for power will increase significantly in line with economic recovery; especially when huge power-consuming projects in the mining sector, particularly platinum production and refining, come on stream.
Government is already working on a number of power generation projects with Kariba South hydro and Hwange thermal power projects, to add 900MW to the national grid, among the most advanced such initiatives.
Independent power producers have also been given licences to generate thermal power in Gokwe North and Matabeleland North among others. Projects were licenced for hydro, thermal, solar and gas power.
Government is also working jointly with Zambia on the Batoka Gorge hydro power project after the two resolved a long standing dispute over sharing of assets from a collapsed Rhodesian Federation Power utility.
Online Reporter