Government has concluded negotiations with South Africa’s
power utility, Eskom that will see the country receiving 400 MW of electricity
while paying US$890 000 weekly to service the country’s legacy debt.
This was said by Information, Publicity and Broadcasting
Services Minister Monica Mutsvangwa at a media briefing on the 28th Cabinet
Decision Making Matrix yesterday.
“Cabinet was informed by the Minister of Energy and Power
Development that an arrangement to unlock the supply of 400 MW has been concluded
with Eskom,” she said.
“In terms of this arrangement, Government through Treasury,
has commenced the payment of an amount of US$890 000 per week towards the
settlement of its debt to Eskom. Furthermore, similar discussions will soon
commence with Hydro Cahorra Bassa of Mozambique.”
Zimbabwe owes Eskom and HCB about US$74 million in legacy
debts with each utility owed approximately half of the amount.
Minister Mutsvangwa also said Cabinet had also approved the
National Renewable Energy Policy that was presented by Industry and Commerce
Minister Mangaliso Ndlovu.
“Cabinet considered and approved the National Renewable
Energy Policy which was presented by the Minister of Industry and Commerce, as
Chairman of the Cabinet Committee on Industrialisation and Export Development.
The renewable energy sector in Zimbabwe comprises solar, hydro, wind,
geothermal and biomass energy sources,” Minister Mutsvangwa said.
She said the Policy seeks to attain the following: “to
establish market-oriented measures and regulatory instruments for the development
of the renewable energy sector in Zimbabwe; to address the barriers to the
uptake of renewable energy in the country; to achieve an installed renewable
energy capacity consistent with the country’s projected energy requirements
under Vision 2030; to promote investment in the renewable energy sector; to
provide the necessary guidelines, incentives, standards, procurement and
financing mechanisms for promoting the development of off-grid projects, which
have the
potential
to increase electricity access in rural areas and to promote the manufacturing
of renewable energy equipment in the country as well as local skills
development in that regard.”
Minister Mutsvangwa added that the Policy was expected to
go a long way in resolving current energy problems besetting the country and
negative effects on the economy.
Energy and Power Development Minister, Fortune Chasi also
said they were reviewing the licences issued to 47 independent power producers
most of whom have not done any work towards power generation.
“Government has pronounced itself around speculative
holding of licences. We are reviewing each and every licence through the
regulator and I understand they have given them time to explain why they are
holding on to the licences,” Minister Chasi said.
He added that Kariba Dam was now 23 percent full and its
generation capacity in the future was bleak amid indications in some quarters
that the country could be affected by another drought.
Meanwhile, Minister Mutsvangwa said Cabinet was also
briefed that the fuel situation was expected to improve soon.
“Regarding fuel supply, Cabinet was informed that the situation
had slightly improved during the week under review.
“The Minister of Energy and Power Development also advised
Cabinet that the fuel supply situation was expected to improve even further
within the next few days, on the back of the funding arrangements currently
under active consideration,” she said. Herald
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