INVESTMENT OPPORTUNITIES IN

THE ZIMBABWEAN POWER

SECTOR

PRESENTED AT ESI POWER INDABA CONFERENCE, DURBAN

SOUTH AFRICA

by: Eng. B. Rafemoyo

ZESA HOLDINGS (PVT) LTD GROUP CHIEF EXECUTIVE OFFICER
 CONTENTS

Overview of Zimbabwe

Background

The Zimbabwe Electricity Supply Industry
Overview

The Power Supply Status

Mitigation Measures to meet Growing National &
Regional Demand

Project Information Reports

Conclusion
 OVERVIEW OF ZIMBABWE

The establishment of the GNU (Government of National Unity)

has created a stable Political environment.

Inflation has been tamed and is now stable.

A projected GDP of 10% for 2010.

There has been a shift from -ve to +ve real interest rates.

The International Community has been re engaged and high
Profile International Investors conferences have been
successfully carried out .Congruency of Policy of the three
Political Principals on economic recovery has been
demonstrated.

Commitment to guarantee private property rights was given
 BACKGROUND

We have a current Generation Deficit of above 600MW,

while the economy is rising from the 2008 world financial
crisis.

The Economy is rebounding and the Suppressed

Demand (over 2200MW) due increased Industrial/
Mining/Farming & Commercial capacity utilisation will
soon be a reality.

Due to the increasing Regional Power deficit SADC

member States are being encouraged to engage in
Generation and Transmission projects that promote self
sufficiency and cross border power trade.
 BACKGROUND

Zimbabwe has a potential Power Generation

resource of up to 9000MW from Coal, Gas and
Hydro. Major projects for investment discussions
have been identified. Excluded in this presentation
are the abundant renewable resources such as wind
and Sun etc.

Zimbabwe sits centrally in the region and will

strategically be the most logical transit route for
power movement, be it North, East or South. The
National Grid transfer capacity is currently limited to
300MW exports and with new reinforcement projects
above 1000MW would be exportable .
 H
Kenya
Gabon Congo
Nairobi
Dem Rep Rwanda
of the Congo
Brazzaville Burundi
Kinshasa

H Tanzania

H
Dar es Salaam
H
H
Luanda
H

Angola
Malawi

Zambia H Mozambique
H
Lilongwe

SAPP H
Lusaka
H
H
H
H
T
H
H

GRID
H
H H Harare
T
H
H

Namibia
Zimbabwe
Botswana
T
H
Windhoek ET
Gaborone
ETET
Pretoria ET
ET H
T
ETET
Johannesburg ETET ET Maputo
ET ET Mbabane
South Africa Swaziland
T
P H Hydro station
H
P Pumped storage scheme
Lesotho T
Thermal Station
H
ET
Eskom thermal station

N
2
Cape Town P
 BACKGROUND

Investments in Power Generation and

Transmission projects have been
deregulated for participation by the private
sector (IPPs) and triple Ps (PPPs).
 THE ZIMBABWE ELECTRICITY
SUPPLY INDUSTRY OVERVIEW

The Electricity Industry is governed by the new

Electricity Act Chapter 13:19 (2003) and Chapter
13:20 (2002) for the Rural Electrification Fund.

The Reforms from the Act

The Zimbabwe Regulatory Commission was
established.

ZESA was unbundled into successor companies

A Rural Electrification Agency was established

 THE ZIMBABWE ELECTRICITY
SUPPLY INDUSTRY OVERVIEW

Reform Benefits

Power Generation deregulated to promote
investment by IPPs and PPPs in generation.

None core ZESA activities were ring fenced from the

tariff chargeable to customers.

The Act called for the adoption of the Cost Reflective

Pricing Model for Tariffs.
 THE ZIMBABWE ELECTRICITY
SUPPLY INDUSTRY OVERVIEW
Generation

Power Source Installed Dependable Currently

capacity MW Capacity MW available MW
Hwange 920 780 350

Kariba 750 750 750

Small 220 170 0

Thermals
Total 1890 1700 1100
 THE ZIMBABWE ELECTRICITY
SUPPLY INDUSTRY OVERVIEW

Typical Tariffs Levels

Domestic 6-8.5USc/kWh

Mining 5-7.0USc/kWh

Commercial 5-7.0USc/kWh

Institutions 5-7.0USc/kWh

Agriculture 5-7.0USc/kWh

Average tariff is 7.53USc/kWh

 THE POWER SUPPLY STATUS-SOURCES

Source Capacity Remarks

Internal 1100MW 90% from Kariba

External 200-300MW 90% from HCB

Total 1 300MW-1400MW
 POWER SUPPLY SOURCES-INTERNAL

Sources Dependable Current Remarks

capacity performance
Hwange 780MW 350MW Resources
Required for
repairs
Kariba 750MW 745MW Base load

Small 200MW 0MW Major Repairs &

thermals Coal supply
constraints
 ZIMBABWE POWER STATIONS
IN S T A L L E D G E N E R A T IO N
C A P A C IT Y

K a rib a P o w e r
S ta tio n (7 5 0 M W )

H w ange P o w er
S ta tio n (7 8 0 M W )
H a ra re P o w e r
S ta tio n (4 5 M W )

M u n y a ti P o w e r
S ta tio n (7 0 M W )

B u la w a y o P o w e r
S ta tio n (6 0 M W )
 NATIONAL GRID
NATIONAL TRAN SM ISSION GRID
TRANSM
REINFORCEM
REIN FORCEM ENT & EXTENSION
MOZ AM B IQ UE
Z AMB IA K ARIBA
SO UTH EXTN
Kariba

M utorashanga
A laska
Harare P /S B indura
G O KW E N TH Harare
2 X 70km
Norton Warren
200 km
Chakari De ma
BATO K A 255 km
Empre ss
3I5 km
I50 km
2x30km Mun yati P/S
H W AN GE LU PAN E S h erwoo d
Have n
Oran g e Grove
KEY 305 km
Ch ertsey
EXISTING 420k V Lines B yo P/S
EXISTING 330kV LINE S
250 km
EXISTING TH ERM AL PO WER ST ATION S M arvel
Manada
Tokw e
EXISTING HY DR O PO W ER ST ATION S
Insukam ini
Plu mtree

NEW TH ERM AL G EN ER ATION

PROP O SED 420kV Line s B OT SW AN A Triangle

PRO P O SED 33 0k V LIN ES
LINE UPR AT E

R SA Beitbridge
NEW HY DR O G EN ER ATION

NEW G AS G EN ER ATION

NEW BULK SU PPLY P O INTS

BULK P OINT TR ANSF ORM ER
REPL AC EM ENT
BULK P OINT C AP AC ITY
INCRE AS E
MITIGATION MEASURES TO MEET GROWING
NATIONAL & REGIONAL DEMAND

Demand Side Management

Refurbishment

Expansion

Greenfield
MITIGATION MEASURES TO MEET
DEMAND

Demand Side management

Reduce demand to save 300MW
@USD80million over 3yrs

Replace all incandescent lamps

Install water heater demand control

Modify tariff to incentivize off peak use
MITIGATION MEASURES TO MEET
DEMAND-REFURBISHMENT

USD100m required to refurbish Hwange to

push production from 350MW to 780MW by
June 2010

USD40m required to boost Small Thermals

output from 0 to 220MW
MITIGATION MEASURES TO MEET
GROWING DEMAND-EXPANSION

Hwange Stage III -2X300MW @ USD600m

by 2015.

Kariba South-2X150MW @ USD400m by

2016.

Develop Central Transmission Corridor to

achieve power transferability of 1000MW
 MITIGATION MEASURES TO MEET
GROWING DEMAND-EXPANSION

CTC developing 2 projects at USD190m

Central Transmission Corridor
- Akaska - Sheerwood (160km) @ USD50m
- Bindura - Mutorashanga (80km) @ USD30m
- Marvel Insukamini (40km) @ USD20
- Dema SVC @ USD50

ZIZABONA Phase I
- Hwange to Livingstone Line (100km) @ USD40m
 ZIMBABWE TRANSMISSION
INFRASTRUCTURE
ZIMBABWE POWER DEVELOPMENT PLAN

ZAMBIA KARIBA MOZAMBIQUE

SOUTH EXTN
Kariba

Mutorashanga
Livingstone Alaska
Harare P/S Bindura
GOKWE NTH Harare
2 X 70km
200 km Norton Warren Gairezi Mini Hydro
Chakari Dema
HWANGE BATOKA 255 km
Empress
3I5 km
I50 km Osborne Mini Hydro
WESTERN Munyati P/S
2x30km
Sherwood
POWER 385 km
LUPANE Haven
Orange Grove
305 km
Chertsey CONDO
EXISTING 420kV Lines Byo P/S Rusitu Mini Hydro
PROPOSED 420kV Lines 310km Mutirikwi Mini Hydro
Marvel
EXISTING 330kV LINES Manada
Tokwe 250 km
Siya Mini Hydro
PROPOSED 330kV LINES
LINE UPRATE Insukamini
Plumtree

EXISTING THERMAL POWER STATIONS Manyuchi Mini Hydro

BOTSWANA Triangle
NEW THERMAL GENERATION

Beitbridge
EXISTING HYDRO POWER STATIONS
RSA
NEW HYDRO GENERATION

NEW GAS GENERATION

Total Potential > 9000MW
 MITIGATION MEASURES TO MEET
DEMAND GREENFIELD PROJECTS

Develop 152MW minihydros at a cost of

USD150m.

Construct 300MW Lupane methane gas
power station @ USD300million.

Construct 8x200MW Batoka hydro power
station @USD 2 400 million.

Construct 4X350MW Gokwe North thermal
power station @USD 1 600 million.
 PROJECT INFORMATION REPORTS

PROJECT REPORTS STATUS

NAME
Hwange Stage Feasibility studies were last
III reviewed in 2003 by WAPCOS
Kariba South Ext Feasibility studies were last
reviewed in 2004 by WAPCOS
Gokwe North Feasibility studies were last
reviewed in 1997 by National Power,
ZESA and Rio Tinto
 PROJECT INFORMATION REPORTS CONT’D

PROJECT REPORTS STATUS

NAME
Batoka Gorge Feasibility studies were done in 1993 by
Lahmeyer International, Knight Piesold
Consulting Engineers & EWI Engineers

Lupane Studies have not yet been done

methane Gas
PROJECTS INFORMATION REPORTS

Project information reports for the following

projects are available at ZESA and can be given
to prospective investors

– Kariba South Extension Power Station

– Hwange Stage III Thermal Power Station
– Central Transmission Corridor Reinforcement and
Expansion
– Batoka Hydro Power Station
– Minihydros Power Stations
– Gokwe Thermal Power Station
– Small thermal power stations Refurbishment
– Demand side management
FORECAST MAXIMUM DEMAND 2009 TO 2029

LOW CASE BASE CASE HIGH CASE

(MW) (MW) (MW)
2009 1806 1942 1942
2010 2095 2428 2428
2011 2157 2816 2816
2012 2222 3126 3126
2013 2289 3376 3376
2014 2357 3511 3511
2015 2428 3651 3651
2016 2489 3797 3797
2017 2551 3949 3949
2018 2615 4107 4107
2019 2680 4272 4272
2020 2747 4442 4442
FORECAST MAXIMUM DEMAND 2009 TO 2029

LOW CASE BASE CASE HIGH CASE

(MW) (MW) (MW)
2021 2816 4620 4620
2022 2886 4805 4805
2023 2959 4997 4997
2024 3033 5197 5197
2025 3108 5405 5405
2026 3186 5621 5621
2027 3266 5846 5846
2028 3347 6080 6080
2029 3431 6323 6323
 FORECAST (MW)

7000

6000

5000

4000
MW

FORECAST (MW)

3000

2000

1000

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
years
 CONCLUSION

Zimbabwe has numerous investment opportunities in

the power sector

Please come and invest in

Zimbabwe

Thank You