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Felex Share : Senior Reporter
The Zimbabwe Energy Regulatory Authority has given ZETDC the greenlight to buy electricity from the Dema emergency power plant at a cost of 15,45 cents per kilowatt per hour. The development will see Zesa paying $83 million — about $7 million annually — for the 536GWh/year to be supplied. This is contrary to the $194 million peddled in the private media.The Dema project is one of the stop gap measures put in place by Government to ameliorate power outages that hit the country at the end of last year due to declining water levels at Kariba Dam.
The 200MW plant, being spearheaded by Sakunda Holdings, is expected to start adding 100MW to the national grid next week.
Zera chief executive Engineer Gloria Magombo confirmed the tariff in a letter written to Sakunda Holdings founder and chief executive Mr Kudakwashe Tagwirei last week.
“Zimbabwe Energy Regulatory Authority advises that a tariff of 15,45 cents/kWh for the power purchase agreement between ZETDC and Sakunda Holdings for the diesel-fired power plant was approved by the ZERA board at its meeting of May 3, 2016,” she said.
“Sakunda Holdings should take note that ZERA consulted and received concurrence from the Minister of Energy and Power Development with regards to approved tariff in accordance with Section 53 (1) of the Electricity Act.”
Eng Magombo added: “The approved tariff will only apply to the power purchase agreement between Sakunda Holdings and Zimbabwe Electricity Transmission and Distribution Company for the supply of 100MW power.
“Supply to selected customers or exports outside the agreement with ZETDC will be subject to agreed tariffs with the parties involved.”
This is contrary to reports that the power price had been pegged at 18,06 cents/kWh.
The Dema project will be in place while big expansion project like Kariba south (300MW) and Hwange Power Station (600MW) materialise.
Sakunda will be leasing generators from Aggreko, the world’s leading temporary power generation company.
The total energy to be supplied from Dema every year will be 536GWh not 1 072 GWh as stated by the Zimbabwe Independent last week.
Cabinet has endorsed the project with Chief Secretary to the President and Cabinet Dr Misheck Sibanda expressing satisfaction with progress made on site when he went on a monitoring tour last week.
While the big projects materialise, the Dema project will be implemented and complemented by another 120MW that should come from the Mutare Peaking Power Plant.
The plant is also one of the priority projects targeted under Zim-Asset and the contractor, Helcraw Electrical (Pvt) Ltd, is already on the ground.
The power from Dema, which is fed directly into the national grid, will also be post-paid with a 45-day payment period.
Other external sources of power Zesa has at the moment are pre-paid and the contracts in place are non-firm meaning power is given to Zimbabwe when it is available.
It is also understood that Zesa had not invested any money for the Dema project and costs of establishing the plant are being met by the on tractor, Sakunda Holdings.
Countries such as Mozambique, Botswana, Kenya, Tanzania and Zambia have gone the route of emergency power plants, in most cases renting diesel powered generators to alleviate power shortages. Other quick-win projects being carried out by Government include re-powering of the Bulawayo Thermal Station where Government has already secured a line of credit valued at $87 million from the Government of India.
The Harare re-powering project will cost $70 million with 85 percent of the cost being funded by India Exim Bank.
Online Reporter