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Wednesday, Jun 19th
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ZPC signs US$230m power deal PDF Print E-mail
Wednesday, 06 June 2012 00:00

Bright Madera Senior Business Reporter
ZIMBABWE Power Company has signed a US$230 million Memorandum of Understanding with Indian power company Wapco Ltd to refurbish the country’s three thermal stations. In its newsletter, “Megawatt Bulletin” published yesterday, the power-

generating unit of Zesa said Bulawayo, Hwange and Munyati power stations would be renovated under the agreement.
The memorandum also includes a feasibility study for the Gairezi hydropower station and upgrading of the Deka pumping station for Hwange Power Station.

“These developments will greatly reduce the demand-supply gap that is compounding load shedding” read part of the bulletin.
After the overhaul, Bulawayo Power Station is expected to produce an additional 90MW from an average of 30MW while Harare would be upped to 230MW from an average of 30MW.

This means the refurbishment exercise will add about 350MW to the national grid.
Zimbabwe requires about 2 200MW of electricity at peak but generates just 1 300MW with the remainder being imported.
As of yesterday, production from all power stations was at 1 224MW.

The agreement with Wapco comes amid calls for Government to replace the equipment at the thermal stations as it was constantly breaking down and its production capacity had been reduced.

Thermal power stations have become expensive to operate taking into account the frequent technical faults and the low output.
The equipment is said to be obsolete and aged, hence revamping the whole plant would reduce operational costs.

Hwange Thermal Power Station is the biggest power plant in the country with an installed capacity of                 920MW.
However, technical problems, spare parts replacement and regular upgrading make the plant prone to frequent production stops.

The Government recently shortlisted 11 bidders for the expansion of Hwange and Kariba South power plants, with a winner expected to be announced in the third quarter of this year.

Extension of the Hwange Thermal Power Station will add 600MW to the national grid, while extension of the Kariba South hydro plant will add an extra 300MW.
Mozambique recently reduced power exports to Zimbabwe to a mere 25MW to push for the settlement of a US$78 million debt.

 

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