Power Column

Dear Stakeholders,

 

Welcome to the Power Column.

 

ZPC sent out a total of 2029.88GWh of energy against a target of 2124.59GWh in the third quarter of 2017. The production target for the period was missed by 4.46%.  The year to date output sent out was 5430.00GWh against a target of 5886.01GWh, thus giving a negative variance of 7.75%.

 

A number of factors affected our performance and these include the various forced outages that were faced at Hwange and the small thermal power stations. Hwange failed to meet their sent out target as a result of the delayed return to service of Unit 6 from major overhaul, numerous tube leaks as well as milling plant challenges. Output at the Small Thermals was constrained due to low availability of the boiler and turbine plant, as well as unavailability of coal.

 

Coal suppliers fell short of their delivery targets for the quarter resulting in depleted stock levels at the Thermal Stations. This is due to the various challenges that are being faced by the coal miners, chief amongst them being delayed recapitalization on the key mining equipment & cash flows. This challenge is therefore preventing most of the miners from processing enough coal required to meet their delivery targets to the stations.

 

The Kariba lake level dropped from 483.19m at the end of the second quarter to 481.99m at the end of September 2017. This represented a 1.2m drop in lake level over the quarter.  The lake is currently 46.89% full.  As of 30th September 2017, ZPC had utilised 11.91bm3 against a target of 11.25 bm3 resulting in a negative variance of 5.88%.  This is attributed to the general shortage of power within the system which saw generation being ramped up at Kariba Power Station to compensate for low generation levels at the Thermal stations resulting in the over usage of the allocated water.  The allocation for the rest of the year remains at the original 15bm³ equivalent to 380MW according to ZRA.

 

The Kariba South Extension project progress increased from 89% at the beginning of the quarter to 92.2% by the end of the quarter against a target of 92.7%.  The project is now being driven under OPC’s Rapid Results Initiative and the first 100 days under the initiative are running from 28 August 2017 to 5 December 2017.  Fund raising is still in progress for the Hwange 7 and 8 expansion project.  A Sinohydro team is currently in Hwange preparing for pre-commencement activities.

 

The tender for Bulawayo repowering project closed on 22 August 2017 and a sole bid was received.  The Draft Contract which was received from India Exim Bank is under ZPC review. The Bulawayo repowering project has also been placed under the Rapid Results Initiative.  Fund raising is still in progress for the Harare repowering project.

 

ZPC is in the process of developing request for proposal (RFP) documents for the Hwange life extension project.  An application for a USD310 million line of credit was made to the Government of India through ZESA Holdings. The USD310 million funding shall be channelled towards plant revival and life-extension works which include refurbishment and upgrading of key components like the boiler pressure parts, boiler & condenser tubes, oil/PF burners, safety valves, refractory, associated piping, Plasma technology, boiler supports and air heaters for units at Hwange Power Station and for short and long term solutions to water adequacy such as arresting plant water leaks, reclaiming water for use on quenching ash and expansion of river intakes and pump station at Deka.

 

Generation licence application is in progress for the Insukamini and Munyati solar projects.  ZERA put up notices for the two on the 3rd of September 2017.  Fundraising for the two solar projects is in progress.  Resumption of pre-commencement works is in progress for the Gwanda solar project.  ZPC was requested by the SPB to negotiate all solar projects in view of the downward trends in solar projects. This project is also under the Rapid Results Initiative.

 

In closing, I would like to express my gratitude to all ZPC stakeholders for their invaluable support.  In return, we will continue to work diligently to ensure that we power Zimbabwe into the future.