Zimbabwe’s Hwange power station will reach full generation capacity of 750MW by next June while 90MW would be produced from a smaller station with help from Botswana to boost output, the energy minister said on Wednesday.
Elias Mudzuri, Minister of Energy and Power Development said four generation units were running at Hwange thermal power plant and two more units would come to life in January and June 2010.
”At Hwange we have four units which are producing 450MW and we have a deficit of 300MW, so we will be able to produce 750MW when the fifth unit is running in January and the sixth unit in June,” Mudzuri told Reuters.
Mudzuri said Botswana Power Corporation had agreed to invest $8-million to restart Bulawayo power station, which has not generated electricity for nearly a decade.
The deal is similar to one signed with Namibia’s utility NamPower last year, which allowed the company to invest $45-million to rehabilitate Hwange in exchange for electricity.
”We are likely to share 50-50 and the capacity of Bulawayo is 90MW, but it could go to 120MW. We are targeting that by June we should be producing electricity from Bulawayo power station,” Mudzuri said.
Zimbabwe has faced serious power shortages, relying on imports to make up for the deficit.
The Southern African country currently produces 1 100MW against a peak demand of 2 000MW and imports between 300 and 500MW, mostly from neighbouring Mozambique and Zambia.
To guarantee adequate supply, Zimbabwe has long planned to add two more units at Hwange, generating 300MW each, and expand its Kariba hydro power plant with two generators, adding 150MW each by 2012 at a total cost of $800-million.
But the government has so far failed to attract independent power producers and Mudzuri said the country’s unstable political environment deterred private investors.
A unity government formed in February between President Robert Mugabe and Prime Minister Morgan Tsvangirai that had raised investors’ hopes may yet unravel after Tsvangirai’s party boycotted cabinet meetings over how to share executive power.
State power utility Zesa is seeking an independent power producer to develop its Gokwe North power plant to produce 1 400MW at a cost of $1,6-billion.
Zimbabwe could also tap 300MW from Lupane Gas project, a greenfield project at a cost of $300-million while Zesa jointly owns with Zambia the Batoka power project with potential to generate 1 600MW at a cost of $1,8-billion.
Mudzuri said monthly revenue collections by Zesa had increased since February when the utility began charging for power in foreign currency.
”This October we have had reasonable collection. It has been increasing gradually. I can tell you that we started below $1-million in February and we have increased to about $25-million and our target is $35-40-million,” Mudzuri said. – Reuters