Continuing power shortages cripple Zimbabwe economy
http://www.coastweek.com/3518_26.htm
SPECIAL REPORT BY XINHUA CORRESPONDENT
TICHAONA CHIFAMBA
HARARE (Xinhua) — Power outages have been on the increase of late and
continue to cripple Zimbabwe ’s economy as the country’s debt-laden power
utility fails to adequately supply electricity to industry, commerce and
agriculture.
With the winter season fast approaching with its usual higher demand for
power than the other seasons, ZESA Holdings’ position is far from being
enviable.
Apart from heating requirements by consumers to beat the cold, hundreds of
farmers also need electricity to irrigate winter wheat and keep other
operations on their farms running.
Agriculture, Mechanization and Irrigation Development Minister Joseph Made
last week bemoaned the power shortages which he said would seriously affect
the revival of the agricultural sector and downstream industries.
“Can you imagine a seed company using generators to dry seed and still
expect to remain in business or sell the product at profitable prices?”
Made told The Herald that he was disappointed to note that some seed houses
were actually using generators to dry the seed because of the power cuts.
ZESA now risks the danger of being accused of derailing the winter wheat
season, even in cases where farmers fail to plant for other reasons.
Even though Made has expressed his disappointment over the power cuts,
Finance Minister Tendai Biti has already said that the power deficit would
persist for the foreseeable future – notwithstanding the on-going
rehabilitation program at power stations.
While billions of U.S. dollars are required to fully refurbish and upgrade
current power stations, the government only availed 40 million dollars for
energy programs in 2011, with an average generation of 1,105 megawatts (MW)
realized against an envisaged capacity of 1,600.
An increased output of 1,244 is now envisaged for 2012, compared to demand
of 2,200 MW required to fire all the sectors of the economy.
Under the 2012 budget, Biti allocated nearly 55 million dollars towards the
rehabilitation of Hwange and Kariba power stations and the transmission and
distribution network.
An injection of 1 billion dollars for the construction of new generation
plants at Hwange Thermal Power Station and another 400 million dollars to
expand Kariba South (Hydro) will create an additional 900 MW and satisfy the
country’s short term needs, but the government does not have such a huge
amount.
Limited finances have also hampered the utility’s ability to import from
neighboring utilities such as Mozambique ’s Hydroelectrica de Cahora Bassa,
to which it is battling to clear an 80 million dollars debt.
At midday, the utility was producing a total of 1,087 MW with Hwange Thermal
Power Station, which has a potential of 920 MW, producing 392 MW while
Kariba hydro was producing 615 MW from a potential of about 740 MW.
The load shedding status was at the highest level of severe. The utility has
five statuses—minimal, light, moderate, heavy and severe.
Zimbabwe recently signed a memorandum of understanding with Zambia to
jointly construct the 4-billion-dollar 1,650 MW at Batoka Hydro-power
project on the Zambezi River .
However, work on the project will only begin after Zimbabwe pays, or makes a
strong commitment to pay off more than 70 million dollars it owes Zambia
from the sale of the Central African Power Corporation assets which had been
jointly owned by the two countries. The debt is supposed to be paid off in
three years.
Generally, Zimbabwe has been engaged primarily in rehabilitating
infrastructure as opposed to construction of new power stations.
More efficient use of power through the replacement of incandescent bulbs
with energy savers, installation of pre-paid meters, among others, will also
result in a saving of 300 MW which can be channeled to the productive
sector.
The government has already removed duty on the importation of energy saving
bulbs to promote their usage.