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Mangoma statement on power generation

Mangoma statement on power generation

http://nehandaradio.com/

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.

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