President launches US$1bn energy plant

Leonard Ncube in HWANGE

PRESIDENT Mnangagwa yesterday led the ground-breaking ceremony for the new 720MW coal thermal power plant being implemented by Titan New Energy in partnership with Zesa Holdings in Hwange, where he commended mutually beneficial private-public sector co-operation in developing a diversified energy mix.

Titan Energy has invested US$1 billion into the 720MW Phase 1 and an additional 200MW solar plant to be constructed in Gweru under Phase 2. Construction is set to begin immediately, while some units are expected to feed the grid by the end of next year.

The Hwange station will be using lower quality coal from mining operations that would otherwise be wasted, helping to control costs and minimise environmental degradation.

The milestone development of a major new power station buttresses the aspirations under Vision 2030 and amplifies the recently launched Energy Efficiency Policy.

The unlocking of new energy investments evidenced by the implementation of multi-pronged power projects across the sector is a testament of the positive fruits of the comprehensive reforms brought in by the Second Republic.

These power projects are poised to transform the electricity generation landscape in Zimbabwe, thereby boosting the supply side to meet rising demand and reversing the tide of power cuts being experienced in the country and across southern Africa.

In his keynote address at the event, which was attended by Vice President Dr Constantino Chiwenga, senior Government officials and scores of locals, President Mnangagwa said increasing domestic energy generation was a critical enabler for accelerated economic transformation.

Zimbabwe has become an investment destination of choice riding on the improved ease of doing business and conducive environment created by the Second Republic led by President Mnangagwa.

The President applauded the new project as a game-changer, adding that support and promotion of projects of this nature was part of his Government’s efforts to increase the installed power generating capacity through construction of new plants.

“It gives me great pleasure to officiate at this ground-breaking ceremony for the power plant projects by Titan New Energy, Dinson and Afrochine,” said President Mnangagwa.

“This marks another milestone in our country’s journey towards modernisation, industrialisation and sustainable socio-economic development, anchored on a robust energy sector.

“Electricity is the lifeblood of industrialisation and is critical for our mining, agriculture and manufacturing sectors, among others. These vital projects also reaffirm Zimbabwe’s commitment to achieve energy self-sufficiency and determination to leap towards a future driven by innovation.”

At the SADC level, the importance of energy in the integration agenda could not be over emphasised, more so, because energy access and availability were some of the key enablers of sustainable development, said President Mnangagwa, who is also the regional bloc’s Chairperson.

While the region had abundant energy resources, ranging from solar to wind, and hydro to gas, the President emphasised the need for greater investments so these energy resources could be converted to electricity.

Zimbabwe and the rest of SADC are facing power supply challenges in the wake of climate change, which has mainly crippled hydro-power generation at the two Kariba Hydro Power Stations, with an an installed capacity of just over 1000MW on each bank.

However, both stations are currently forced to run at 125MW each because of low water levels and sharply reduced inflows into the lake.

President Mnangagwa called for enhanced collaboration between the public and private sector in the development of energy infrastructure, particularly renewable energy.

“In doing so, maintaining an intricate balance between green energy and traditional sources, remains of utmost priority in our country’s energy generation strategy.

“I congratulate all stakeholders, for the ingenuity, well done. Undoubtedly, the exponential growth of our industry, modernisation and an improved quality of life of our people, manifest in part, through an ever-expanding housing stock, which has increased our country’s overall energy demand.

“This is against a background where climate change-induced drought has seen depressed generation capacity at hydro-power plants,” said the President.

“This must see the sector fully harnessing the potential of the region’s energy endowments towards achieving universal access to modern energy services. Further, there is a need for the region to focus on increasing, not only generation capacity, but also the uptake of renewable energy. This will ensure that SADC is able to achieve a sustainable energy mix.”

President Mnangagwa highlighted that another critical area that needs partnerships and investments for a viable and vibrant energy sector in SADC, was the construction of more transmission interconnections across the region.

This would enable collective and shared benefits from new generation capacity installed in countries in the region.

“Investors are, therefore, invited to explore the numerous prospects, which exist for both in-country and cross-border energy projects in SADC,” said President Mnangagwa.

He pledged Government’s commitment to continue developing right policy frameworks to accelerate the diversification of the energy portfolio to avert energy poverty.

“These relate to ease of doing business with regards to competitive tariffs for independent power producers, permits acquisition, grid connections and the supply chains facilitation. The sector is assured of Government’s support to build a more resilient energy sector that enables green industrialisation as we redefine our future,” said President Mnangagwa.

The investments being witnessed in the energy sector were a testament of the significant progress made in infrastructure development under the Second Republic. This includes the commissioning of the Hwange 7 and 8 Expansion Project, which is delivering over 610MW of power into the national grid.

President Mnangagwa said indepependent power producers were complementing Government efforts through investments, which have seen the commissioning of power generating projects of over 300MW.

The projects by the independents include the ZZEE 50MW thermal power plant in Hwange, which is presently feeding power into the grid, Dinson Steel’s 50MW thermal power project in Chivhu that will be expanded to 100MW by end of next year, Blanket Mine’s 13MW solar photovoltaic plant, Zimplats’ 35MW solar PV plant and Centragrid’s 25MW solar PV plant in Nyabira, west of Harare along the Harare-Chinhoyi Road.

“The Titan Thermal Power Plant being embarked upon, will see the remarkable generation of 720MW, whilst Afrochine will contribute 100MW through a solar PV project in Selous,” said the President.

“Furthermore, the same investors from Titan will undertake the Jinan 200MW solar power plant in Gweru. These projects are expected to be completed by December 2025.

“This is the work culture of the Second Republic. These and other projects should undoubtedly meet our power demands of today and continuously fuel our ambitions of tomorrow, whilst we unlock the potential of our abundant natural resources to drive economic growth and transformation.”

Going forward, the President urged stakeholders in the power sector to ensure that Zimbabwe was not only energy sufficient, but also energy efficient.

There is a need for host communities in Hwange, Chivhu and Selous, to benefit more from the investment projects through creation of jobs, stimulation of economic activities, and facilitation of skills transfer and development, he said.

President Mnangagwa challenged investors to fully embrace all environmental, social and governance considerations in their projects, ensuring a holistic approach to development.

He commended the Ministry of Energy and Power Development, Zimbabwe Electricity Supply Authority and the Zimbabwe Energy Regulatory Authority, among others, for ensuring that new investors could enter into the electricity sector and embrace the Whole of Government approach.

But President Mnangagwa condemned vandalism of electricity infrastructure and called for action against perpetrators while urging investors to take advantage of the available opportunities, including moving up the value chain and creating more value and ensuring technology transfer.

“We must not tolerate vandalism, and it is imperative that we present ourselves as the safest investment destination in the world,” he said.

The new 720MW project is one of the deals struck by President Mnangagwa during his visit to China for the Forum on China-Africa Co-operation Summit held in Beijing recently.