Business

ZESA owed staggering ZiG5.7 billion

-rampant vandalism draining the utility

MARTIN MAWAYA

HARARE – The Zimbabwe Electricity Supply Authority (ZESA) is owed a staggering ZiG5.7 billion (US$140m) by its clients as of August 12, 2024, with the industrial sector contributing 50% of the debt, followed by the commercial and mining sectors at 12%, and the domestic and parastatals are at 1%.

Local authorities owe ZESA ZiG578 million, reflecting 10% of the total debt, while the government owes ZiG304 million, representing 5% and farmers  are at 4% with ZiG255 million.

This was revealed by ZESA executive chairman Sidney Gata in a press statement released on Tuesday.

Gata also noted that cases of vandalism have surged to 7 186 over the past five years up to June 2024, costing the power utility US$24.4 million, with an average of US$4 million per month in repairs and replacements.

From January to June 2024, ZESA recorded 727 cases and lost US$1.4 million, while 2022 saw the highest number of reported cases at 1,694, costing the utility $4.7 million.

The cases include theft and vandalism of copper and aluminium conductors, cables, transformer oil, pylons, and transformers.

To address the power supply challenges, ZESA has implemented measures to increase imports and restore capacity at the Hwange Power Station units 1 and 2, which have been affected by forced outages.

“The ongoing Repowering Programme at Hwange Power Station, a US$800 million investment, aims to upgrade Units 1 to 6, enhancing the station’s reliability and output,” said Gata.

Currently, the station is maintaining output of 485MW, even as Unit 5 is being upgraded.

ZESA has been facing a power supply shortfall of up to 540MW during the high-demand winter period, with total power supply averaging 1 310MW against a demand of 1 850MW at peak.

However, a recent fault at Hwange Power Station unit 8 has been resolved, and the unit Is expected to be back online soon.

Gata also announced that ZESA is finalizing an agreement with Jindal of India for the repowering of Hwange Units 1 to 6, which will increase the station’s output from the current average of 485MW to 840MW.

Additionally, Jindal of India will invest in four new units at Hwange, introducing 1 200MW of new capacity.

Furthermore, ZESA is in the process of installing a 1 800MWh (1.8GWh) utility-scale battery energy storage system, which will provide 3 hours of 600MW during morning and evening peaks, substantially reducing load shedding.

These initiatives, combined with the expected normalization of water flows in the Kariba Dam, are expected to produce over 3 300MW of additional capacity in the medium term, providing relief to ZESA’s power supply challenges, added Gata.

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