OVER 30 independent power producers (IPPs) with licences to
generate up to 5 000MW, stare the prospect of losing the licences for
continuously failing to resume operations, at a time the country is contending
with acute electricity shortages.
This comes as Energy and Power Development Minister Fortune
Chasi last Friday assured productive sectors of the economy adequate
electricity and fuel to power their operations.
Minister Chasi said the Renewable Energy Policy, which will
allow for competitive procurement selection processes unlike the current
scenario where potential investors solicit for bids but cling on to licences
without executing the projects, would be launched soon.
“The ministry is set to launch a Renewable Energy Policy
once all approvals have been achieved, which will promote the uptake of
renewable energy projects and allow for competitive procurement selection
processes for the development of future projects,” said Minister Chasi while
addressing delegates during the Zimbabwe Annual Mining Conference in Victoria
Falls.
“This is opposed to the current situation where potential
investors solicit for bids and hold on to licences. At the moment, more than 30
entities have been licensed for power generation with capacity in excess of 5
000MW.
“Those currently not demonstrating capacity to execute
their projects will have their licences revoked to avoid rent-seeking
tendencies.”
He added that Government has begun carrying out a review of
all licences issued to potential investors to establish if the projects will be
implemented in the short to medium term.
Government sees IPPs as critical in playing a significant
role in addressing the power challenges facing the country.
About 13 IPPs are already generating up to 13,2MW of power,
which is being fed into the national grid.
Some of the operational IPPs include Duru, Nyamingura,
Pungwe A to C, Hippo Valley Estates, Triangle Estates, Green Fuels, Hauna Power
Station, Kupinga Power Station, Claremont Power Station, Riverside Power
Station, Nottingham Estate, Econet and Padenga Holdings.
Minister Chasi said other strategies to deal with power
shortages include encouraging mining companies to set up photovoltaic solar
plants to reduce power demand especially during peak periods.
He said mining companies can enter into supply contracts
with IPPs or execute the projects alone.
Minister Chasi added that the electricity demand by
ferrochrome smelting companies also means the country needs “more investment in
generation especially renewable energy and base-load to ensure future energy
security”.
“I would like the (mining) industry to consider very
seriously investing in solar so that we shed off a lot of power demand in the
peak period which has resulted in load shedding,” he said.
Further, mining companies can enter into a prepayment
agreements with the Zimbabwe Electricity Transmission and Distribution Company
(ZETDC) on a “back-to-back” arrangement with regional utilities to enable the
local power utility to secure more imports.
Foreign currency shortages, and arrears with Eskom of South
Africa and Mozambique’s Hidroelectrica de Cahora Bassa (HCB) amounting to US$83
million, have meant that Zimbabwe can only import 100MW from the two regional
utilities.
Previously, Eskom and HCB used to avail 450MW to Zimbabwe
but failure to pay the arrears since October last year had complicated matters.
In the medium term, Government is working on the expansion
of Hwange Thermal Power Station to add two more units, 7 and 8, each with a
capacity to generate 300MW.
The first unit will be switched on in 2021 with the second
expected online in 2022.
The Batoka Gorge power project is also expected to share
equally with Zambia the 2 400MW to be generated.
The Zimbabwe River Authority (ZRA), which is the
implementing agent of the US$5,2 billion project, is set to identify the
project developer before end of year.
Minister Chasi said Zimbabwe has taken “active interest” in
the project.
An Energy Efficiency Policy to ensure use of power
sparingly was also on the cards.
Minister Chasi also wants miners to pay the $200 million
they owe ZESA. But Minister Chasi said miners will get steady supplies of
diesel and electricity.
“The ministry is aware that the mining sector consumes
large quantities of diesel. Regrettably, supplies of the product to the
productive sector have been constrained, thus adversely affecting your
operations,” said Minister Chasi.
“However, the ministry remains committed to availing
adequate supplies of energy and is doing everything possible to ensure that the
situation returns to normalcy.
“We have identified that there is need for rationalisation
of distribution of fuel across the country to ensure that productive sectors
that are key, are assured of fuel and power.”
Minister Chasi’s remarks come at a time when the country
continues to contend with fuel and electricity shortages due to low water
levels.
The Zambezi River Authority (ZRA) is rationing water for
power generation at Kariba, with both ZESA and Zambia’s power utility, Zesco,
now producing 375MW.
Zambia is also reeling from load shedding of up to five
hours. Herald
0 comments:
Post a Comment