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US$450 million to repower Hwange Units 1-6
23 Jun 2024 at 05:27hrs | Views
The Zimbabwe Power Company (ZPC) has secured a US$50 million loan to initiate the repowering of Hwange Power Station Units 1 to 6, aiming to boost the nation's power generation capacity. This move is crucial in meeting the rising power demand due to increased industrial activity. The repowering project will extend the operational life of these units and complement the recently commissioned Units 7 and 8, which add 240 megawatts to the grid.
ZPC General Manager, Engineer Shepherd Mukundu, informed the Parliamentary Portfolio Committee on Energy that they are negotiating a US$500 million five-year funding package with Exim Bank of India, split into two tranches of US$310 million and US$110 million. Meanwhile, ZPC has borrowed US$50 million from Stanbic Bank to commence the project ahead of securing full funding. The Ministry of Finance is aiding in these negotiations.
The repowering project is expected to take four to five years and aims to increase capacity, reliability, and extend the life of the units by 15 to 20 years. Despite aging infrastructure, Units 1 to 6 currently produce 420 megawatts, although their installed capacity is 900 megawatts. Hwange Power Station generated 1,696.4 gigawatt-hours (GWh) of electricity in the first quarter of this year, accounting for 75.4% of the country's total generation, surpassing contributions from Kariba Hydro-Power Station and Independent Power Producers (IPPs).
Zimbabwe faces a peak power demand of under 3,000 megawatts, with local production at approximately 1,200 megawatts. The shortfall is covered by imports and IPPs. The government anticipates increased electricity demand, particularly in agriculture, manufacturing, and mining, as industrial activity continues to recover. These efforts are part of economic initiatives under President Mnangagwa's engagement and re-engagement policy.
ZPC General Manager, Engineer Shepherd Mukundu, informed the Parliamentary Portfolio Committee on Energy that they are negotiating a US$500 million five-year funding package with Exim Bank of India, split into two tranches of US$310 million and US$110 million. Meanwhile, ZPC has borrowed US$50 million from Stanbic Bank to commence the project ahead of securing full funding. The Ministry of Finance is aiding in these negotiations.
The repowering project is expected to take four to five years and aims to increase capacity, reliability, and extend the life of the units by 15 to 20 years. Despite aging infrastructure, Units 1 to 6 currently produce 420 megawatts, although their installed capacity is 900 megawatts. Hwange Power Station generated 1,696.4 gigawatt-hours (GWh) of electricity in the first quarter of this year, accounting for 75.4% of the country's total generation, surpassing contributions from Kariba Hydro-Power Station and Independent Power Producers (IPPs).
Zimbabwe faces a peak power demand of under 3,000 megawatts, with local production at approximately 1,200 megawatts. The shortfall is covered by imports and IPPs. The government anticipates increased electricity demand, particularly in agriculture, manufacturing, and mining, as industrial activity continues to recover. These efforts are part of economic initiatives under President Mnangagwa's engagement and re-engagement policy.
Source - The Sunday News
