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ZPC managing director Noah Gwariro

Senior Business Reporter
THE Zimbabwe Power Company (ZPC) has missed its generation target by 9,14 percent to 1,758, 24 GWh in the third quarter ended September 30, 2016 due to cash flow challenges and equipment breakdown.

ZPC managing director Engineer Noah Gwariro indicated in a report that the power company had targeted generating 1,935.10GWh during the period under review but could not achieve it.

“In the third quarter of 2016, ZPC sent out a total of 1,758.24GWh against a target of 1,935.10GWh. Major contributors to the miss in our target include cash flow challenges as well as forced outages at Hwange due to tube leaks and ID fan challenges.

“We also experienced delayed return to service of Turbo-Alternator number 1 at Harare Power Station, which was anticipated to be back in service by April 2016.

“The rotor was finally delivered to site on 23 September 2016 and installation works are in progress. Commissioning is expected to start on 16 October 2016,” he said.

Of late the country produces an average of 1000MW per day from about 1400MW compared to an average demand of 2000MW. This has forced Zimbabwe to import electricity from regional producers to cover the supply gap.

This week the Government moved to avert a potential electricity crisis by issuing a R500 million ($35 million) guarantee to South Africa’s power utility, Eskom to back up power imports from the neighbouring country. Eskom, which supplies Zesa Holdings with 300 megawatts, recently wrote to the power utility threatening to cut supplies over a $12 million debt. Erratic power supplies have a negative impact on industry and the agriculture sector.

The power utility said low availability of the boiler plant at small thermal power stations which has resulted in intermittent operations as well as erratic coal supplies due to inconsistent deliveries from the major suppliers, also contributed to the 9.14 percent negative variance.

Turning to power development projects, Engineer Gwariro said progress at Kariba South Extension project reached 58 percent in the third quarter as per schedule, hence on target to commissioning the first unit on December 24, 2017.

“Sino Hydro representatives were in the country from the 15th of June 2016 to the 8th of July 2016 to work on finalising all agreements required for financial closure for the Hwange expansion project.

“Negotiations between ZPC and Zinwa for water supply agreement for the Harare II repowering project were completed. The agreement is expected to be signed upon confirmation of water charges,” he said.

Engineer Gwariro said the Expression of Interest (EOI) to prequalify Indian Bidders for the Bulawayo repowering project was in progress, and a shortlist of prequalified bidders will be sent to ZPC.

Towards the end of last year, the Government announced that it had secured an $87 million credit line from the Export-Import Bank of India to finance the upgrading of Bulawayo Thermal Power Station.

The plant was set up in 1947 as an undertaking by the municipality of Bulawayo with an installed capacity of 120 megawatts but can now only generate about 30MW due to aged infrastructure.

Other projects on the pipeline include the $1.5 billion 600MW Hwange units 7 and 8 expansion, 600MW China Africa Sunlight Energy project in the Gwayi area of Matabeleland North, the 800MW Batoka project and several solar energy projects among other independent projects.

@okazunga