Tuesday, September 11, 2007

(HERALD) Power boost from Moza

Power boost from Moza
Business Reporter

POWER supplies have improved moderately after Mozambique increased its exports to Zimbabwe by 100 percent last week, resulting in a decline in loadshedding. Since last week, Hidroelctrica de Cahora Bassa of Mozambique has been supplying Zimbabwe with 300 megawatts daily, up from 150MW. Zesa Holdings has a running firm contract with HCB of 50MW.

The Mozambican power utility has been providing Zimbabwe with an additional 100MW and the latest developments will see it supplying a further 250MW under a non-firm contract basis. Zesa Holdings chief executive Engineer Ben Rafemoyo confirmed the development yesterday.

He said Zimbabwe Power Company — a subsidiary of Zesa Holdings — had also been able to run two generators at its Hwange Power Station following constant coal supplies from Hwange Colliery Company Limited.

Eng Rafemoyo also attributed the reduction in power cuts to falling demand as the hot summer season approaches.

"We negotiated with them (HCB) and they understood our plight . . . we told them that we need adequate electricity supplies for the winter wheat programme and other critical sectors," said Eng Rafemoyo.

"So, they really responded positively and decided to add 150MW from what we have been getting.

"We have also been getting constant coal supplies from Hwange and this enabled us to produce an average of 250MW at Hwange Thermal Power Station."

The Mozambican power utility had slashed power supplies during the winter season after Zesa Holdings failed to settle its foreign debt running into billions of dollars. Before the supplies were cut back, Zimbabwe has been getting a total of 450MW per day.

Eng Rafemoyo said Zesa had maintained a good working relationship with HCB despite the existing debt, which he said was close to US$20 million.

"We have very huge foreign obligations to HCB. We are yet to pay our bills for July and August and in total we have outstanding obligation of four months’ supply, which is around US$20 million. But they have maintained supplies to us," Eng Rafemoyo said.

Apart from Mozambique, Zimbabwe also imports electricity from South Africa, Zambia and the Democratic Republic of Congo. The country requires US$12 million per month for power imports.

Total imports constitute about 35 percent of the country’s electricity requirements. The remainder is generated locally.

Eng Rafemoyo added that joint efforts between Zesa and HCCL were underway to explore ways of adequately capacitating HCCL.

Without going into much detail, he said opportunities were being looked into to find ways of unlocking additional capacity at HCCL to increase coal production.

"We are doing something and it is premature to start talking about it now. Efforts are underway and once we have concluded, we will make a joint statement," he said.

Generation capacity at Hwange had sharply declined due to coal shortages and recurrent breakdowns at the old power plant. Small thermal power stations had not been operating also due to coal shortages.

The sectors that require coal have been severely affected with some mining and manufacturing companies having been forced to cut down monthly production time by almost 50 percent as a result.

The reconstruction of generator number four at Hwange has already commenced under the US$40 million NamPower deal with Namibia. The inter-utility deal is based on sound commercial terms, utilising NamPower’s own cash reserves.

Once the refurbishment is complete on four units, NamPower will receive 150MW of power for a minimum period of five years, starting in July 2008.

In terms of the agreement, exports of power to Namibia would be increased on a pro-rata basis as additional units at Hwange are commissioned.

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