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Chairman's
statement
Zimbabwe Power
Company
October 02, 2011
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Starting
with the end in mind
It is important
that customers are regularly informed of the stark reality of generation
capacity in Zimbabwe. If the facts are understood then it is up
to each individual to assess how best they can cope going forward
into the next four to five years. There has been no meaningful investment
in additional power since the 1980's - 25years! Over the past
two and a half decades there has been major growth in our population
as well as a population drift to the urban areas.
The demand for
power is around 1,800 MW at daily peak and this is growing. Local
installed operational capacity today is around 1,200 MW - so we
have a gap of 30%. As ZPC implement their program to stabilise and
optimise the generation capacity at all its stations over the next
12 months the supply will increase to 1,500 MW - but in the meantime
demand will continue to increase.
The ONLY way
to close this gap is to install additional capacity and the shortest
timeline to achieve this is four years. So I urge all customers
and stakeholders to understand this and take whatever steps they
can to mitigate against this stunted power capacity.
I suggest that
an Energy Forum is established amongst major customer groups to
facilitate dialogue around this critical aspect of life in Zimbabwe.
We need to seek solutions that will help address this shortage:
remove duties on solar power equipment, remove duties on low energy
power devices, change the building by-laws to insist that all middle
and high income new houses use solar geysers, insist that new mines
install solar systems in their housing and other water heating processes
etc. Most importantly to engage in a national education campaign
on how to be more economical in our power usage.
Other power
producers need to be encouraged to enter the market. Licenses have
been issued but it seems there is little appetite to invest, why?
We need to debate these issues.
An Update
on Capacity Expansion
Kariba and
Hwange
There has been a very
positive response to the "Expression of Interest" for
the expansion at both Kariba and Hwange. The "Expressions
of Interest" closed in mid-September and our team of Hatch,
KPMG Consortium and management are reviewing the documents before
making recommendations to the State Procurement Board. This will
then be followed by a formal tender to prequalified companies.
To ensure that the momentum
is maintained it is vital that the Independent Regulator is put
in place outside of the Ministry and that this new body engenders
the confidence of potential investors.
Small Thermals
WAPCOS (an Indian
consultancy group in the power sector) will finish the feasibility
studies to re-power the boilers at the small thermal stations. We
then intend looking for funding / joint venture partners to help
us carry out these upgrades.
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