Difference between revisions of "Zimbabwe Power Company"

From Pindula
 
Line 84: Line 84:
 
| [[Riverside Solar]] || Mutoko || Solar || Jan 2018 || 2.5MW
 
| [[Riverside Solar]] || Mutoko || Solar || Jan 2018 || 2.5MW
 
|}
 
|}
 +
 +
PGI's experience with [[ZETDC]] is at odds with the above complaints. The [[Honde Hydro Power Consolidated]] (HHPC), a wholly owned subsidiary of [[PGI]] Group Limited, the group has an agreement with [[ZETDC]] which states that the sole power distributor will and must purchase all electricity generated by the plant and each scheme must sell all its output to [[ZETDC]].
 +
From its experience, the company states that powers purchasing agreements work well and that [[ZETDC]] is a reliable counterparty. Any issues that arise such as interruptions to their transmission system (which prevent the dispatching of electricity into the grid) have been dealt with timeously. This is despite claims by other IPPs who are failing to take-off that ZETDC is not reliable and flexible on tariffs. <ref name="HHPC seeks $5m for hydro project"> [https://www.herald.co.zw/hhpc-seeks-5m-for-hydro-project/  ZPC gets licence for Bulawayo Power Station], The Herald”, Published: 20 May 2016, Retrieved: 8 September 2019''</ref>
  
 
[[Category:Power, electricity]]
 
[[Category:Power, electricity]]

Latest revision as of 08:34, 11 September 2019

Zimbabwe Power Company
Type
Parastatal
IndustryEnergy
PredecessorZimbabwe Electricity Supply Authority Holdings (ZESA)
Founded1996
FounderGovernment of Zimbabwe
HeadquartersHarare, Zimbabwe
Key people
Eng. Noah F. Gwariro - Managing Director,
ProductsElectic Power
OwnerGovernment of Zimbabwe
Websitezpc.co.zw

The Zimbabwe Power Company (ZPC) was formed in October 1996, as part of the 2001 restructuring of Zimbabwe Electricity Supply Authority Holdings, (ZESA) under the Ministry and Energy and Power Development. The Electricity Act (Chapter 13:19) refers. Under the structure, all power generation assets and operations were placed under the Zimbabwe Power Company.

Location/ Contact

12th Floor, Megawatt House, 44 Samora Machel Avenue, Harare, Zimbabwe
Post: P.O Box MP 274 Mount Pleasant, Harare, Zimbabwe
Tel: +263 (0424) 250407-9, 770675, 770672
Fax: +263 (0424) 794828, 702840, 794827, 794820
Email: pr@zpc.co.zw


Current structure

Physical

ZPC runs five power generation plants in Zimbabwe.

Station Design Capacity Production March 2018 Production June 2019
Munyati Thermal Power Station 120MW 0MW 17MW
Bulawayo Thermal Power Station 90MW 0MW 16MW
Harare Thermal Power Station 90MW 14MW 17MW
Hwange Thermal Power Station 920MW 320MW 413MW
Kariba South Power Station 1050MW 725MW 881MW

Independent Power Plants (IPPs)

Zimbabwe has licenced over 45 independent power producers (IPPs). These IPPs have a combined capacity of nearly 7,000MW, from large hydro, small hydro, solar PV, gas-fired thermal, coal-fired thermal, wood waste and bagasse. There has not been much project development as of 2019, with most projects still at conceptual/pre-feasibility stage. There are two big hurdles;

  • The tariff has been sub-economic, failing to pass any test required to make a positive investment decision.
  • The investment climate in Zimbabwe, characterized by policy inconsistency and lack of predictability on key policy fundamentals, lack of growth in demand, price distortions in both foreign exchange and goods markets and a host of many other problems.

Dema Power Plant, the largest IPP, with an installed capacity to produce 200 megawatts from 228 diesel generators, and the lowveld bagasse plants at Triangle Estates, Hippo Valley and Green Fuels contributing a significant 96.3MW.

Manicaland hosts several mini and micro hydro power plants such as Pungwe A, Pungwe B, Pungwe C, Hauna Power, Duru, Nyamingura and Kupinga Power Stations and others, totalling 29.22MW.

[1]

PGI plants in Zimbabwe are:

NAME LOCATION TYPE COMMISSION INSTALLED CAPACITY
Nyamingura Nyamingura / Madengwe R Hydro Dec 2010 2.3MW
Duru Duru R Hydro Mar 2013 2.2MW
Pungwe A Nyamombe R Hydro Jan 2013 2.75MW
Pungwe B Pungwe R Hydro Feb 2015 15MW
Pungwe C Chiteme R Hydro Mar 2016 3.75MW
Hauna Power Ngarura R Hydro Jan 2017 2.3MW
Riverside Solar Mutoko Solar Jan 2018 2.5MW

PGI's experience with ZETDC is at odds with the above complaints. The Honde Hydro Power Consolidated (HHPC), a wholly owned subsidiary of PGI Group Limited, the group has an agreement with ZETDC which states that the sole power distributor will and must purchase all electricity generated by the plant and each scheme must sell all its output to ZETDC. From its experience, the company states that powers purchasing agreements work well and that ZETDC is a reliable counterparty. Any issues that arise such as interruptions to their transmission system (which prevent the dispatching of electricity into the grid) have been dealt with timeously. This is despite claims by other IPPs who are failing to take-off that ZETDC is not reliable and flexible on tariffs. [2]

Ownership

ZPC is owned by ZESA holdings. Each power station holds a generation licence from the Zimbabwe Electricity Regulatory Authority (ZERA). ZERA has also licenced over 45 independent power producers (IPPs).

Projects

  • Lupane Coalbed Methane (Lupane, in western Zimbabwe)
  • Gairezi Hydro-Electric Scheme
  • ZPC Solar (Gwanda, Insukamini, Munyati)
  • Batoka Gorge Hydro-Electric Scheme (Along Zambezi River, downstream of the Victoria Falls)


Corruption Allegations

Gwanda Solar Project

The Zimbabwe Power Company was alleged to be involved in the Gwanda Solar Project tender award which paid businessman and socialite, Wicknell Chivayo money amounting to $7 million. Irregularities were discovered after the project had not started despite Chivayo being given money. ZPC managing director was reportedly suspended by the board following questions raised by the legislators.

“The total amount that was released was around $7 million, including Value Added Tax; it was disbursed in tranches,” said ZPC board chairman Stanley Kazhanje.

“The amount was paid by management and the figures were within their threshold as it did not require board approval. As a board, we discovered it from Press reports. There was no need for the issue to come to the board.”

[3]

Kariba South Hydro Station

The expansion of Kariba South Hydro Power Station by 300MW for an inflated cost of US$533 million has been the most significant project in the energy sector since the construction of Hwange Power Station during the liberation war. About this Kariba Expansion Project cost; the Engineering, Procurement and Construction (EPC) cost was US$355 million, and an additional US$178 million was for consultancy, permitting, licenses and other nefarious costs. The four-year expansion project of Hwange Power Station is in progress at a cost of US$1.5 billion, after the figure miraculously rose from the initial US$1.1 billion. Both projects have been funded by loans from the China Eximbank, and awarded to the same contractor, Sino Hydro.[1]

Further Reading

[1] Zimbabwe Power Company website
[2] "OPINION | Power crisis: Shedding light on a decade of bad decisions, and the path to recovery", newZWire, Published 2 August 2019, Retrieved: 5 August 2019"

References

  1. 1.0 1.1
    "OPINION | Power crisis: Shedding light on a decade of bad decisions, and the path to recovery", newZWire, Published 2 August 2019, Retrieved: 5 August 2019"
  2. ZPC gets licence for Bulawayo Power Station, The Herald”, Published: 20 May 2016, Retrieved: 8 September 2019
  3. ZESA gave Chivayo $7m, not $5m: Parly, Newsday, Published: 23 January 2018 , Retrieved: 13 March 2018