THE Zimbabwe Energy Regulatory Authority (Zera) has
cancelled licences of seven Independent Power Producers (IPPs) that have failed
to kick start their projects within stipulated timeframes as it moves to open
up space to investors exhibiting the capacity to assist the country to reduce
its power deficit.
Zera acting chief executive officer Engineer Eddington
Mazambani said the authority has cancelled seven dormant IPPs and would
continue with the purge as it moves to ensure the power projects are expedited.
In recent years, the country liberalised its energy sector
in a bid to promote the participation of private capital but most of the
projects have failed to take off.
“Seven licences have been cancelled to date. The
cancellation of licences is a continuous exercise. Zera monitors project
implementation on a quarterly basis as provided for in their licence
conditions. It is on the basis of these quarterly reviews that Zera identifies
non-performers,” said Eng Mazambani although he could not readily name the
affected companies.
The energy regulator had to date licensed 61 IPPs with a
combined capacity of contributing 6 671,886 megawatts (MW) to the national grid
with 19 of those all being solar projects with a total capacity of 547,3MW
having been licensed this year.
However, only 16 projects are operating contributing
131,276MW to the grid. Mr Mazambani said it was however, of paramount
importance to note cancellation of IPP licences is done in accordance with the
laws of the country and as such might take time in some instances.
“It is also important to note that there are procedures to
be followed in cancelling licences in-line with Section 51 of the Electricity
Act (Chapter 13:19). Cancellation of a licence is therefore a process and not
an event,” he said.
The country is battling electricity shortages following a
sharp decline in water levels in the Kariba Dam due to erratic rains in the
2018-19 rainfall season, and generation constraints at Hwange Power Station
because of ageing equipment.
Zimbabwe and Zambia share less than 1 000MW, which is
currently being generated by Kariba Hydro-electric Power Station. Sunday News
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