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Tinashe Makichi Business Reporter
PER Group Ventures (Pvt) Ltd has started engaging potential financiers for the Lusulu coal-fired power plant in Hwange project after having successfully completed a preliminary feasibility study. PER is a Zimbabwean registered company, created to develop a coal fired power station of up to 2,400 MW. Zimbabwe Energy Regulatory Authority chief executive Engineer Gloria Magombo last week said the promoters of the project are in the process of mobilising financing as well as conducting an environmental impact assessment study.

“A preliminary feasibility study report has been submitted and a new lead financier has been identified.

“The promoter has identified various contracting companies relevant to the project and MOU’s have been signed,” said Engineer Magombo.

She said the project has overshot the initial implementation plan by two years and the promoter was tasked to submit feasibility reports and a new implementation plan.

PER Lusulu Power is the trading name for the development of the power station and PER holds both a 2 400 MW generation licence and a transmission licence issued by ZERA.

PER aims to be one of the most competitive power producers in the SADC Region and will become a full member of the SAPP.

Major independent power generation projects are expected to be rolled out in 2016 although amid indications that the country’s energy regulator is yet to finalise the regulatory processes.

The regulator has so far licensed various large electricity generation projects, investing in 11 new projects with a combined capacity of 5 400 MW and value of $10,1 billion.

She said all new projects were looking at trading in the Southern African Power Pool and ZERA is working closely with SAPP in coordination of regional power generation projects for optimization of available resources in the region.

The country’s National Energy Policy calls for a capacity expansion of 800 MW at the Batoka Gorge hydropower power station by 2020, 300 MW at the Kariba South hydroelectric power station by 2016 as well as other smaller hydropower plants.

Among the independent power producers is China Africa Sunlight which is a 600 megawatt project currently awaiting the finalisation of the bankable grid. Shangano Power Plant in Hwange is also another independent plant expected to produce 600megawatts.

Engineer Magombo said these projects are moving at a faster rate and will be going for financial closure soon.

The Development Bank of South Africa has also availed funds to help Independent Power Producers to develop bankable projects to solicit for capital from international financiers.

Zimbabwe continues to invest in new power generation capacity to close its supply gap and has set a target of 10,000 MW of installed capacity by 2040 to support a vision of growing the economy to $100 billion.