Fortune Nkosi
Bulawayo—The Zimbabwe Electricity Supply Authority (ZESA Holdings) is grappling with a huge debt that includes US$350 million incurred in the refurbishment of Kariba South Power Station (KSPS) units, the power utility has revealed.
These financial obligations have put immense pressure on the company, which is required to make repayments in foreign currency.
The authority has had to export power to generate the necessary funds, and this has exacerbated domestic power shortages.
Ironically, the energy utility is importing power from Zambia, Mozambique and South Africa to meet domestic demand.
This was revealed in a report by the parliamentary portfolio committee on Energy and Power Development that exposed critical challenges hindering Zimbabwe’s electricity generation, transmission, and distribution.
These challenges have significantly contributed to the ongoing power crisis affecting commercial and domestic consumption nationwide.
Throughout the country, communities are spending most of the time in the dark due to acute power cuts, while industries and farms have been facing the same challenge for a long time.
The energy entity is also blaming climate change that it says has reduced its capacity for hydropower due to poor rainfall and the resultant low water levels in Kariba Dam.
The dam is Zimbabwe’s largest hydropower source.
The report states that only 8 billion cubic metres of dam water have been allocated for electricity generation, reducing power output to a mere 250 Megawatts (MW).
According to the report, he Zimbabwe Power Company (ZPC), a ZESA subsidiary, blamed aged infrastructure—dating back to as long as sixty ago—at Kariba and the thermal Hwange power company for poor power generation.
The Zimbabwe Electricity Transmission and Distribution Company (ZETDC), another ZESA subsidiary, reported that theft and vandalism of electricity infrastructure further strained the power sector.
“This involves theft of power cables, transformers and other equipment, as well as the vandalism of infrastructure like power lines and substations. These illicit operations cause service delays, financial losses, and increased maintenance expenses for ZETDC,” said the report.
Furthermore, ZETDC stated it was working on replacing copper wires that are attracting criminals, adding that despite “rumours that the theft and vandalism are an inside job,” there is no proof to support this.
A shortage of skilled personnel in the electricity sector is further compounding Zimbabwe’s power challenges.
The ZESA management told the committee that, over the last two years, it has struggled to retain critical technical expertise.
Zimbabwe is currently generating only 1,079 MW out of an installed capacity of 2,570 MW, according to the report.
The KSPS is capacitated to produce 1,050 MW but currently is managing a paltry 250 MW.
“ZPC management stressed the normal year water allocation is 20 billion cubic meters and allocation for the year 2024 was 8 billion cubic meters. Lake level was at 477.4 meters as of May 2024, resulting in the production of only 250 MW,” read the report.
At Hwange Thermal Power Station, the situation is equally dire. Despite an installed capacity of 1,520 MW, including the recently commissioned Units 7 and 8, which added 600 MW, the plant is producing only 750 MW.
Independent power producers (IPPs) are contributing a mere 69 MW to the national grid, primarily from solar energy projects.
During a debate on the findings of the Energy and Power Development committee last week, legislators expressed grave concern about the country’s persistent power shortages, and put forward a range of solutions.
Mbizo lawmaker, Corban Madzivanyika, raised critical issues affecting IPPs, which have been authorised by the government to help bridge the electricity deficit.
“The government has authorised independent power producers to assist in bridging the gap in terms of the electricity deficit that we are facing in this country. Those IPPs are investors to Zimbabwe and have limitations, which must be addressed as a matter of urgency,” said Madzivanyika.
He further pointed out the burden of value added tax (VAT) on imported energy equipment.
“The recent Finance Bill has allowed VAT to be deferred to 180 days. Since we are in vital need of this resource, can we completely exempt the payment of VAT by those independent power producers whenever they import equipment from other countries for the purpose of the generation of electricity?” he argued.
Madzivanyika said IPPs borrow money in foreign currency but when they establish their companies in Zimbabwe, they are forced to bill in the local and weak ZiG, which is unstable.
“These are companies which actually enter into business for the purpose of making profit. Can we allow them to bill in USD? We may allow schools and hospitals to still bill in ZiG but those big manufacturing companies charge in USD so that we safeguard the USD component.”
Chiredzi Central member of parliament, Ropafadzo Makumire, pushed for the revamping of mini-hydro power stations.
“If you look at Nyanga District, there were plants, for example, Gairezi Hydropower Station. People were expecting about 30 megawatts. The tender was awarded to someone in 2015 but, up to now, we do not see any progress,” said Makumire.
He advocated for decentralised electricity generation, saying every province can contribute more energy.
“In Hwange there is coal, Dande there is coal and Chiredzi there is coal. If you go to Manicaland, they have a lot of water and in Masvingo, they also have dams. All those dams should have mini-hydro power stations so that we generate electricity in all provinces,” he said.