ZPC needs US$3bn for power generation

Africa Moyo
THE Zimbabwe Power Company needs about US$3 billion to implement short to medium-term projects to increase electricity generation to 3 200MW within four years.
ZPC is a subsidiary of the Zimbabwe Electricity Supply Authority and is responsible for power generation.
At 3 200MW, power supply will be 1 000MW more than current electricity demand at 2 200MW, making Zimbabwe a net exporter of power.
Presently, electricity generation is depressed owing to low water levels at Kariba Dam.
By Wednesday last week, Zimbabwe was producing 979MW (Munyati – 16MW, Bulawayo – 23MW, Harare – 30MW, Kariba – 416MW, and Hwange -494MW).
The country’s power plants, excluding small units run by independent power producers, have an installed capacity of 1 920MW.
ZPC managing director Engineer Noah Gwariro told a recent strategy stakeholder consultative workshop in Harare that they wanted to “close the gap between installed capacity and current generation” and “close the gap between installed capacity and demand over time”.
It is envisaged that through the projects, local power plants would be able to produce 1 890 MW by 2018, while an additional 1 300MW would be added through new projects by 2020.
Eng Gwairiro said about US$240 million was needed “for recapitalisation of existing plants by 2018 (while) US$2,8 billion (was needed) for new generation projects by 2018”.
Expansion of Kariba South and Hwange power stations add 900MW to the national grid.
Chinese firm Sinohydro Corporation Ltd won the engineering, procurement and construction (EPC) contract for the expansion of Kariba South at a total cost of US$533 million.
China Eximbank will provide US$355 million for the project while ZPC will weigh in with US$213 million.
Expansion of Kariba South, which started in 2014 and is expected to be completed by 2018, is 42 percent complete.
In addition, construction of units seven and eight at Hwange will contribute 600MW. Work started last year and should be completed in 2019.
An estimated US$1,5 billion is needed for the project.
Topographical and geotechnical surveys are in progress and work towards financial closure for the main EPC works is underway.
The three solar projects slated for Gwanda, Munyati and Insukamini – which will generate a cumulative 300MW by 2017 – are being actively pursued by ZPC.
ZTE Corporation of China, Intratrek (Private) Limited and Metallurgical 17 were awarded contracts to build the solar plants at a combined cost of US$549 million.
Eng Gwariro said EPC contracts were signed for the three project sites and “fundraising is in progress”.
However, Government is understood to be investigating alleged irregularities in the ZTE contract though the deal will not be reversed.
Three other power projects also expected to shore up power generation and distribution in Zimbabwe include Gairezi Hydro (30MW), Batoka Gorge (1 200MW) and Mutare Peaking Plant (120MW).
The Mutare Peaking Plant, designed to meet demand during peak periods, is forecast to come online in 2018.
Gairezi is widely expected to begin feeding the grid in 2019.
EPC contracts for Gairezi and Mutare Peaking Plant have been signed and work is now towards financial closure, while feasibility studies are in progress for Batoka Gorge.
Plans are also underway to repower Harare, Bulawayo and Munyati thermal power stations.
Repowering involves replacing older power stations with new ones that either have greater capacity or more efficiency.
Although the three thermal plants have capacity to produce a combined 250MW, they were generating an average 69MW last week.
For Munyati, the EPC tender was awarded, while India Eximbank has approved a US$87 million line of credit for Bulawayo.