Zimbabwe Power Company

Current structure

Physical

ZPC runs five power generation plants in Zimbabwe.

Station	Design Capacity	Production March 2018	Production June 2019	Production June 2021	Production November 2022	Production February 2023
Munyati Thermal Power Station	120MW	0MW	17MW	0MW	14MW	0MW
Bulawayo Thermal Power Station	90MW	0MW	16MW	0MW	0MW	0MW
Harare Thermal Power Station	90MW	14MW	17MW	14MW	11MW	0MW
Hwange Thermal Power Station	920MW	320MW	413MW	164MW	245MW	74MW
Kariba South Power Station	1050MW	725MW	881MW	1023MW	854MW (This was before the ZRA directed ZPC to reduce generation to 300MW)	250MW

2022 total of 1 124MW, against a peak demand of 2 200 MW. 2023 total of 324MW.

In February 2021, a ZPC report stated that

• Kariba Hydro-Power Station is now the dominant producer of electricity in the country, generating about 754MW out of the combined output of 1 075MW
• Hwange Power Station, the largest thermal power producer with an installed capacity of 920MW was only producing 293MW
• Bulawayo Thermal Power Station, which has 120MW installed capacity was at zero yesterday,
• Munyati Thermal, which originally had 120MW capacity was generating only 16MW.
• Harare Thermal Power Station output has dwindled to 12MW against an installed capacity of 75MW.

Station	Design Capacity	Production March 2018	Production June 2019	Production June 2021	Production November 2022
Munyati Thermal Power Station	120MW	0MW	17MW	0MW	14MW
Bulawayo Thermal Power Station	90MW	0MW	16MW	0MW	0MW
Harare Thermal Power Station	90MW	14MW	17MW	14MW	11MW
Hwange Thermal Power Station	920MW	320MW	413MW	164MW	245MW
Kariba South Power Station	1050MW	725MW	881MW	1023MW	854MW (This was before the ZRA directed ZPC to reduce generation to 300MW)

2022 total of 1 124MW, against a peak demand of 2 200 MW.

• Small thermals contributed only two percent of the total energy production during the quarter.

Zimbabwe is generating about 1 075MW daily compared to estimated demand of 2 200MW. Imports therefore have to cover the power supply gap. ^[1]

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.

^[2]

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. ^[3]

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.”

^[4]

In September 2021, Soda Zhemu, the Energy Minister, noted that the Gwanda Solar Project was still stagnant, after court disputes for nine years, after being questioned in parliament.

The contractor, Intratrek Zimbabwe and Zimbabwe Electricity Supply Authority (ZESA), signed a contract in 2014 and the company was awarded US$5 million, for the implementation of a 100 megawatt solar project.

A 2019 High Court ruling declared that the contract was valid after ZESA tried to terminate the contract citing that Intratrek had failed to deliver. The court directed that the feuding parties negotiate a fresh way forward. ZESA also tried to criminal charges against Intratrek director, Wicknell Chivayo and ex-Zimbabwe Power Company (ZPC) chair Stanley Kazhanje.

In July 2020, Fortune Chasi (Zhemu’s predecessor) said government had resolved to reestablish the implementation plan for the 100 megawatt project, and Intratrek vowed to deliver the first 10MW within six months after signing of financial closure agreements. ^[5]

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.^[2]

Events

Hwange Expansion

In October 2020, it was reported that Hwange Thermal Power Station Plant units 7 and 8, being built by top Chinese firm, Sinohydro, for US$1,1 billion, are designed to produce 600 megawatts when both units are commissioned in two years’ time. A new process is being used, known as magnetohydrodynamics, or open cycle, which involves burning coal with oxygen instead of air to generate electricity without emitting any sulphur dioxide. (SO²), corroborated by Sinohydro site manager Tang Zhaolai.

Thermal plants have been criticised as key drivers of climate change because they emit a lot of greenhouse gases. Not using air also avoids generating nitrogen dioxide, the main atmospheric and health contaminant emitted from thermal power plants.

The expansion of the Hwange Thermal Power Plant is expected to feed 600 megawatts into the national grid and will go a long way in easing the country’s electricity crisis. Currently, Zimbabwe requires about 1 800 megawatts at peak periods, but frequent breakdowns at the existing antiquated units have reduced production to less than 500 megawatts. ^[6]

In February 2023, Energy and Power Development Minister Zhemu Soda said the expansion of the Hwange Thermal Power Station’s Unit 7 is 99 percent complete, with only the synchronisation of the whole system set to be done. The Unit was expected to add 300MW to the national grid upon completion. Synchronisation would be completed anytime this month (i.e. February). Hwange Unit 7 had actually progressed with all other systems having undergone commissioning tests and they were successful. One of the critical stages in the commissioning of a power station is the achievement of certain revolutions of the turbine and that was achieved. We expect that anytime from now given that the whole system is 99 percent complete; we are only left with one percent which is the synchronisation of the whole system. Work on the project started in August 2018 using an initial $199 million from China Eximbank but its completion was delayed by the outbreak of the coronavirus in late 2019. According to the Zimbabwe Power Company (ZPC) website, 13 February 2023, Hwange Thermal Power Station was generating 378MW. ^[7]

Faults at Hwange 2023

^[8]

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