Independent Power Producers Under Scrutiny

The government, through the Zimbabwe Energy Regulatory Authority (ZERA), will soon revoke the licences given to some Independent Power Producers (IPPs) who have failed to operate.

38 solar projects are non-operational, having a total capacity of 1280 megawatts (MW). These licences are now in the spotlight. Energy and Power Development minister Fortune Chasi had this to say:

We will soon be looking at dormant licenses and revoking them for non-performance. We want to do away with speculative behaviour.

Some license holders paid close to nothing for the licenses and now want to sell them for a fortune that is not acceptable.

IPPs [independent power producers] should have a clear timeline as to when they expect to start production.

There are 38 non-operational projects with a total capacity of 1280.24MW. The capacities of the solar plants range from 0,19MW SAZ plant to the 175MW Sinogy Power solar plant.

According to a Business Times report, ZERA has issued at least 77 power generation licences. The report says:

As of July 31, 2019, ZERA issued more than 77 power generation licences and 70 of these are IPPs with 42 for solar power projects.

The total capacity of licensed solar projects is about 1285MW and this includes 5,5MW from operational projects and about 1280MW from projects under development.

Government has also licensed four operational biomass projects with a total capacity of 92.8MW, comprised of 3 Bagasse/Thermal projects and 1 Wood waste project which mostly generate power for own use, however excess power is banked in the ZESA grid.

In addition to this, there is a total of six licensed coal projects which are under development with a total capacity is 4560MW.

These include the PER group venture with a capacity of 2000MW in Binga and the China Africa Sunlight Energy project with a capacity of 600MW in Gwayi.

More: Business Times

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