Mangoma statement on power generation
on May 4, 2013 at 6:38 am
Press statement by Elton Mangoma, the Minister of Energy and Power
Development on initiatives to boost the power situation
In view of the current challenges besetting the efficient supply of power
nationwide and the need to enhance the financial position of the electricity
utilities, the Ministry of Energy and Power Development has come up with a
number strategies to mitigate the power situation in the country.
The measures being taken are divided into Generation capacity and supply
side activities, Demand Side Management and Institutional changes. The
supply side is further split into short, medium and long term measures.
The strategies include;
STATUS OF GENERATION
The generation capacity of the Hwange Power Station has improved
significantly with an average of five units (580MW). This has allowed the
Zimbabwe Power Company (ZPC) to carry out upgrade works and preventive
maintenance at the Kariba Power Station without causing major power
shortfall to the system. The Kariba Power Station has continued to maintain
a steady power generation.
PREPAYMENT METERS
The smart/prepayment metering is a valuable short term strategy which seeks
to improve revenue collection by the utility and influence behaviour change
on how consumers use electricity. The system also assists ZETDC to recover
accrued debts by deducting 20 percent on every electricity purchase going
towards servicing the debt, among other benefits.
As of yesterday, a total of 150 000 prepayment meters had been installed for
both domestic and commercial users. Government issued a Statutory Instrument
44A on Electricity (unpaid bills, prepaid meters and smart meters)
regulations, 2013 which aims, among other things, to speed up the
implementation of the prepaid/ smart metering programme.
The Statutory Instrument compels all electricity consumers to purchase and
install smart meters with the exception of high density customers, rural
customers and light load agricultural customers. The Statutory Instrument
also deals with outstanding bills on the date on which the prepaid meter is
installed as these will be transferred to the property at which the prepaid
meter is installed.
In order to ensure efficiency, ZETDC this week commissioned a new Vending
Platform supplied by Itron of South Africa. The new Platform can accommodate
both smart and prepaid meters.
Medium Term Power Generation
• KARIBA SOUTH EXPANSION – The Zimbabwe Power Company (ZPC) and Sinohydro
have concluded negotiations for the 300MW Kariba South Expansion Project. As
a result, Sinohydro has commenced work at the site.
• HWANGE POWER STATION – adjudication process for the 600MW Hwange Expansion
Project has been completed and the project was awarded to CMEC. Work is
expected to commence before the end of the year.
• 84MW DIESEL GENERATOR – A diesel plant (84MW) that has operated for
100hours has been identified at a capital cost of €37 million. This about
50% of the cost of new plant. The ZPC has made a technical analysis and that
diesel generators are suitable for our system and have the capacity of
reducing load shedding by 80MW.
• 30 MW GAIREZI SMALL HYDRO POWER PLANT – The project is now at design stage
following completion of feasibility studies and official launch is expected
this month.
• 500MW CBM POWER STATION- ZPC has also floated a tender for resource
mapping of coal bed methane. The tender was awarded to WAPCOS of India and
it is ready to carry out the work. However, ZPC is awaiting CBM special
grants documentation from the Ministry of Mines and Mining Development.
Instead there are two grants awarded to one company Shangani Energy and
another to China Africa Sunlight by the mines ministry. The grants are
overlapping with the desired ZPC concession area. These concessions were
granted after Cabinet granted ZPC concession but the Mines and Mining
Development ministry is refusing to effect Cabinet decision.
• 1000MW WESTERN AREA POWER STATION – China Railway International (CRI) and
China International Fund (CFI) have signed a Memoranda of Understanding
(MoUs) with the government to develop a 1000MW thermal plants.
China Railway International came for site investigation in December 2012 and
has submitted a draft contract for the project development. The finalisation
of reinstating the Western Area coal concession to the ZPC by the Ministry
of Mines is important. Again the Ministry of Mines and Mining Development is
not cooperating, causing a delay in the commencement of this project.
• 100MW ON-GRID SOLAR POWER – Some suitable sites for the 100MW solar power
plant are being identified. The ZPC has engaged the Plumtree Town Council
for land to construct the power station. A tender for the 100MW power plant
is expected to be floated soon. The tender will cover BOT, IPP, PPP and pure
debt basis.
LONG TERM PROJECTS
• THE BATOKA HYDRO ELECTRIC POWER PROJECT –Zambia and Zimbabwe have agreed
to undertake this project on a BOT basis. This was after Zimbabwe agreed to
honour the EXCAPCO assets debt of $70.8 million. So far a total of US$40
million has been paid towards the US$70, 8 million. The Zambezi River
Authority called for Expressions of Interest to develop the Batoka on a
Build Operate and Transfer basis. The response was extremely good -25
companies showed interest and the majority from credible international
organisations.
• THE GREAT INGA HYDRO PROJECT – is proposed on the Congo River in the DRC.
This can produce around 100 000MW. This project is too big for the DRC and
requires a regional approach. If this is constructed it will change the
economic fortunes of the region. Hydro power is cheap and it is worth the
time spent on promoting it.
INSTITUTIONAL CHANGES
• RESTRUCTURING OF THE POWER SECTOR – The restructuring of ZESA Holdings has
been approved by Cabinet. This is to make ZESA more efficient and responsive
to the consumers, whilst at the same time, setting up a mechanism to make it
easy for Independent Power Producers to have a level playing field.
These developments will result in the following.
• ZESA Holdings be collapsed into a National Grid Services Company (NGSC)
and move all the legacy debts to this company. It will be 100% Government
owned and it will not be privatised. NGSC will be responsible for
Transmission, Market and Systems Operation. It will have the “reserve
supply” responsibility.
• ZETDC will transfer the transmission functions to NGSC and transform to
Zimbabwe Distribution Company (ZEDC) and be responsible for Distribution of
Electricity.
• SUMMARY – Measures to consolidate the power availability and reliability
will continue. Such measures will include taking out plant for preventive
routine maintenance and equipment upgrade. Negotiations for firm power
imports from the region will be pursued by both Government and the power
utility.
The implementation of all power projects continue to be a critical success
factor for securing self-sufficiency and reliability in power supply to the
nation. To this end the Ministry is continuously evaluating project risks
and working on mitigatory measures to ensure the projects are realised.