ZETDC to seal power deal with Mozambique

Business Reporter
THE Zimbabwe Electricity Transmission and Distribution Company is close to clinching a deal to increase power imports from Mozambique by 50 megawatts to augment local supplies.

Managing director Engineer Julian Chinembiri said ZETDC, a subsidiary of Zesa Holdings was hoping to seal the deal once the power purchase agreement between Mozambique and other regional utilities expire. Zimbabwe is importing 50 MW from the eastern neighbour.

“We have an agreement for the supply of 50 megawatts, but we are planning to increase that to 100 megawatts,” Eng Chinembiri said in an interview.

“We are trying to tie up a deal and are waiting for their power purchase agreements with other utilities to expire.

“They have agreements for the supply of about 100 megawatts with other utilities that include Botswana. We are looking at sealing the deal before year end.”

Zimbabwe is grappling with power shortages which has resulted in severe load shedding.

The country’s power plants produce an average 1 200 megawatts, about half of its peak demand and is minimizing power shortages through imports from the region.

Zesa Holdings is also in talks with Lunsemfwa Hydro Power Company of Zambia to import electricity to boost domestic supply.

A delegation from Lunsemfwa was in the country recently for negotiations, which, if successfully concluded would see Zimbabwe importing 50 megawatts from Zambia.

Zesa chief executive Eng Josh Chifamba the move is aimed boosting local supply through importing electricity from regional sources.

Lunsemfwa Hydro is the first independent power producer in Zambia. It operates two hydropower plants with a total installed capacity of 56 MW.

LHPC is currently undertaking feasibility studies and has a strategic plan to increase the installed capacity to 500 MW by 2020.

LHPC is a subsidiary of Agua Imara, an SN Power Group company.

Zimbabwe requires about $5 billion for projects to increase generation capacity to produce 3500 MW.

Projects lined up included the $1,5 billion joint project with China to build units at the Hwange thermal power station, a $533-million expansion at Kariba hydropower station, solar in Matabeleland and gas or diesel generators in the eastern border town of Mature, according to media reports citing Eng Noah Gwariro, managing director of Zesa’s generation division Zimbabwe Power Company.

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