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CHALLENGES AND INVESTMENT OPPORUNITIES: THE CASE OF ZESA

CHALLENGES AND INVESTMENT OPPORUNITIES: THE CASE OF ZESA. By Mr Ikhupuleng Dube, System Development Manager – Zimbabwe Electricity and Transmission Company (ZETDC), a subsidiary of ZESA Holdings ( Pvt ) Ltd. Presented at the Worldbank CCS Workshop Johannesburg 31 st May– 1 st June 2011.

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CHALLENGES AND INVESTMENT OPPORUNITIES: THE CASE OF ZESA

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  1. CHALLENGES AND INVESTMENT OPPORUNITIES: THE CASE OF ZESA By Mr Ikhupuleng Dube, System Development Manager – Zimbabwe Electricity and Transmission Company (ZETDC), a subsidiary of ZESA Holdings (Pvt) Ltd Presented at the Worldbank CCS Workshop Johannesburg 31st May– 1st June 2011

  2. Presentation Content • Electricity Sector Policy, Governance Structure and Players • Importance of Electricity in Promoting Economic Growth • Current Challenges • Security of Supplies • Reliability of Supplies • Investment Opportunities • Generation • Grid • Other

  3. Electricity Sector Policies • Ensure availability and accessibility of electricity to all consumers (current and future) at competitive prices; and • Facilitate electricity investments and access by Independent Power Producers (IPPs), Public Private Partnerships (PPPs), Private Public Associations (PPAs) and other forms of joint ventures into the sector.

  4. Electricity Subsector Structure

  5. ZESA Holdings • Holds shares of the successor companies on behalf of the Government • Have four subsidiaries • Zimbabwe Power Company (ZPC) • Zimbabwe Electricity Transmission and Distribution Company (ZETDC) • Powertel • ZESA Enterprises

  6. ZESA Main Mandate • To supply all sectors of the economy with adequate, safe, reliable environmental friendly and least cost electrical energy. • Strong linkages between electricity supply and economic growth.

  7. Linkages between Electricity and Economic Growth

  8. Linkages between Electricity Supplies and Productivity

  9. Main challenges • Lack of investment in generation leading to demand outstripping supply • Vandalism of infrastructure • Ageing equipment limited maintenance and refurbishment challenges • Reliability of supply and customer connection challenges • Power wheeling challenges • Power quality challenges (need for compensation equipment) • Low tariffs, revenue collection and financing challenges • Inefficient usage of electricity • Access to electricity challenges

  10. Domestic Supply and Demand Challenges

  11. Supply and Demand Challenges – Summer Day

  12. Supply and Demand Challenges – Winter Day

  13. Reduced availability of Imports Challenges

  14. Historical Trends of Electricity Import by ZESA (MW)

  15. Factors Affecting Load Growth • Suppressed demand due to load shedding (2591GWh in 2008) • Investment due to large mining customers (almost 800MW in the medium term) • Resuscitation of production levels by large users (currently suppressed demand of 340MW) • Access to electricity by urban households (estimated at 60MW yearly for the next 15 years starting in the medium term) • Rural electrification (total load of 420MW) • General economic growth (linkages between productivity and energy consumption) • Demand due to services such as public lighting, water pumping etc. • Resuscitation of production levels in the agricultural sector. • Increase in demand due to improved consumer lifestyles

  16. Future Demand and Supply Balance

  17. Availability Energy Resources to Meet Demand - Coal

  18. Coal Policy Issues • To ensure adequate and reliable supplies of coal in a cost effective and sustainable manner; • To ensure environmentally friendly exploitation methods; • To explore the techno-economic feasibility of new coal technologies such as coal gasification, carbon capture and coal-to-liquid conversion;

  19. Availability of Energy Resources to Meet Demand - Hydro

  20. Other Available Energy Sources • Coal bed Methane- estimated at more than 600 billion cubic metres (further exploration to confirm amount of gas). • Forest residues - almost entirely based on plantation timber;70,000 tons of this biomass waste is produced annually. • Energy Crops - in the next four years 150MW to be generated from energy crops.

  21. Security of Supplies Investments

  22. Transmission and Sub-transmission Investment Requirements

  23. Distribution Refurbishment and Extension • Cables and conductors – US$25 mil • Transformers – US$169 mil • Prepaid meters and MCBs – US$64 mil • Tools and Equipment – US$4 mil • Operational Vehicles – US$46 mil

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