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Energy authority reviews power producers applications

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THE Zimbabwe Energy Regulatory Authority (Zera) is currently reviewing applications from independent power producers (IPPs) as the regulator has not issued any licences this year.

VICTORIA MTOMBA
BUSINESS REPORTER

Last year, three IPPs were licenced, Zera chief executive officer Gloria Magombo said yesterday.

“We have received applications and they are under review. People do apply, but usually the requirements will not be enough so they will be going to and fro until they meet all the requirements. Some fail to complete the process,” she said.

Magombo said the authority ensures that by the time the IPP gets the licence, they should be in a capacity to implement the project.

“I cannot give you details about the IPPs that have so far put forward their applications as we are reviewing them. But in November we will know the numbers of those who would have been licenced,” she said.

As of 2013, six IPPs were operational and generating electricity.

These include Triangle, Hippo Valley, Chisumbanje and Nyangani Renewable Energy (Pvt) Ltd’s three IPPs. Nyangani’s three IPPs are producing 6,05 megawatts (MW) from a $15 million investment at Duru, Nyamhingura, and the first phase of the Pungwe project.

The major IPP projects that include Sengwa, Shangano, China Africa Sunlight, Lusulu, Batoka, Essar Power Plant and Batoka are expected to come on board in 2016.

Zimbabwe, according to the African Development Bank, requires nearly $10 billion in five years to resuscitate the energy sector. The power sector produces 1 200MW against demand of 2 000MW.

The sector has been facing many challenges that include lack of investment and capital and old equipment. Following far-reaching reforms in the sector, government expects the participation of IPPs to ease the perennial power constraints.

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