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ZESCO faces US$5m penalty for exceeding Kariba water allocation
7 hrs ago |
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Zambia's state-owned power utility, ZESCO Limited, could face a penalty of about US$5 million after severely exceeding its hydropower generation water allocation at the Kariba Dam by the end of 2025, according to the Zambezi River Authority (ZRA).
The authority said ZESCO's current rate of water consumption suggests it could surpass its allotted share by as much as 4,7 billion cubic metres, triggering a penalty of approximately US$5,1 million.
For 2025, the ZRA allocated a total of 28 billion cubic metres of water for hydropower generation, to be shared equally between ZESCO and the Zimbabwe Power Company (ZPC).
"A slightly less damaging scenario, involving overuse limited to 2 billion cubic metres, would still cost about US$3,9 million in penalties but would leave a minimal 1,6 billion cubic metres of water in reserve for the next year," said the ZRA in its assessment.
The Zambezi River Authority, a bi-national organisation jointly owned by Zambia and Zimbabwe, is responsible for managing the Kariba Dam complex and overseeing the sustainable use of the Zambezi River's water resources.
The Kariba Dam supports two major hydroelectric power stations: Zambia's Kariba North Bank Power Station, operated by ZESCO, with an installed capacity of 1 080 megawatts (MW), and Zimbabwe's Kariba South Bank Power Station, operated by ZPC, which has an installed capacity of 1 050 MW.
ZESCO's overuse of water could exacerbate long-term sustainability concerns for the dam, which has faced recurring challenges from low water levels in recent years due to droughts and increased regional power demand.
The ZRA has repeatedly urged both utilities to adhere to their water use allocations to preserve dam levels and ensure continued power generation stability for both countries.
The authority said ZESCO's current rate of water consumption suggests it could surpass its allotted share by as much as 4,7 billion cubic metres, triggering a penalty of approximately US$5,1 million.
For 2025, the ZRA allocated a total of 28 billion cubic metres of water for hydropower generation, to be shared equally between ZESCO and the Zimbabwe Power Company (ZPC).
"A slightly less damaging scenario, involving overuse limited to 2 billion cubic metres, would still cost about US$3,9 million in penalties but would leave a minimal 1,6 billion cubic metres of water in reserve for the next year," said the ZRA in its assessment.
The Zambezi River Authority, a bi-national organisation jointly owned by Zambia and Zimbabwe, is responsible for managing the Kariba Dam complex and overseeing the sustainable use of the Zambezi River's water resources.
The Kariba Dam supports two major hydroelectric power stations: Zambia's Kariba North Bank Power Station, operated by ZESCO, with an installed capacity of 1 080 megawatts (MW), and Zimbabwe's Kariba South Bank Power Station, operated by ZPC, which has an installed capacity of 1 050 MW.
ZESCO's overuse of water could exacerbate long-term sustainability concerns for the dam, which has faced recurring challenges from low water levels in recent years due to droughts and increased regional power demand.
The ZRA has repeatedly urged both utilities to adhere to their water use allocations to preserve dam levels and ensure continued power generation stability for both countries.
Source - The Herald
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