We shall have to keep tabs on what’s going on in the energy sector. I mean, we love tinkering with gadgets but unfortunately, these devices still run on electricity and the shortages the country is facing are hitting us where it hurts.
For the first time ever in Zimbabwe, we have accessible unlimited data internet packages and some are not able to properly indulge cause they only have power for a fraction of the day. So, we need ZESA, ZPC and the government to fix this.
Thing is, we can’t really trust those institutions to get us out of this hole we’re in. Luckily for us, they now admit it too. Well, maybe not explicitly, but their actions show that they recognise we need the private sector to get in on this action.
We have seen a number of Independent Power Producers licensed to take a crack at it. There are multiple projects in the pipeline, some in the 5MW range and some in the hundreds. We have talked about some of those here.
We know that not all will come to fruition but let’s hope this next one succeeds.
Titan’s 920MW plan
Titan New Energy has invested US$1 billion into the construction of a 720MW coal thermal power plant in Hwange and a 200MW solar plant in Gweru.
Construction of the power plants is set to begin immediately, with some units expected to be operational by the end of next year, and completion of projects anticipated by December 2025.
The new thermal power plant will generate 720MW, while the solar project will add an additional 200MW, significantly boosting Zimbabwe’s electricity generation capacity. As I write this on the 6th of December, the Zimbabwe Power Company says we are producing just under 1200MW.
Hopefully, that shows you just how big of a deal the 920MW would be. That’s like three quarters of what we are generating today.
The Hwange station will utilize lower quality coal that would otherwise be wasted, aiming to control costs and minimize environmental degradation. I know that the green army will still hate that Zimbabwe is fully embracing coal but they have to admit, this is a neat little silver lining.
President Mnangagwa emphasized the government’s commitment to enhancing energy infrastructure through public-private partnerships and creating a conducive environment for investment. See, the government is now fully on board with public-private partnerships and I’m all for it.
This news comes around the same time as that of Hwange’s old units getting much-needed upgrades. Units 1-6 will be getting a 500MW capacity upgrade (from 300MW – which we’re not even getting – to over 800MW.)
So, with just the Hwange upgrades and this Titan project, we will add 1420MW capacity (920+500). So, I think this time around there might some meat to the government’s ‘We will fix power shortages in two years’ rhetoric bone.
The Chinese whipped the bottoms of our feet
These projects show just how much we were overcharged for Units 7 and 8 at Hwange. We paid $1.5 billion for 600MW of capacity.
Then comes Jindal who have committed $1 billion but the project is expected to cost $800 million for their 500MW Hwange upgrades.
Then Titan blows both those projects out of the water with their 920MW project having gotten $1 billion. Maybe that figure will rise as they construct the things but it will still be cheaper per MW than the Unit 7 and 8 upgrades.
It is what it is though. We are just glad that we can be cautiously optimistic that this power shortage problem might be solved soon.
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