Tinashe Makichi
Multinational electricity generating company, Green Rhino Energy has applied for a Special Economic Zones permit following completion of some preliminary works at its Marondera-based solar power project.
Antiquated equipment and limited investment in the capital intensive sector has seen Zimbabwe generating less than its peak demand.
The electricity deficit has seen many local firms struggling to compete with regional peers as the company now relies on imports from SADC. Several companies such as mining companies have already submitted plans to set up independent power producers to meet their energy requirements.
Green Rhino Energy is a joint venture between De Green Rhino Energy Private Limited and a Zimbabwean company, De Opper Trading.
The company is spearheading the Marondera based solar power project which is currently veiled in uncertainty due to failure to secure the critical project implementation agreement from Government.
Green Rhino Energy managing director Joachim Baumgaertner told Business Times that the energy company was still committed to Zimbabwe despite current challenges affecting the economy.
“First of all, we are not considering pulling out of the project. We have been further developing the project. Following an environmental scoping report that was done last year, we commissioned a wetland study, the result of which means that we had to change the layout of the plant,” said Baumgaertner .
“We also renewed the environmental study, ran a hydrological survey and undertook design for the rehabilitation of the road. We’ve also been granted a development permit and are now awaiting the license under the Special Economic Zone.
“All of those local licenses and approvals are required by investors and lenders. In parallel, we are working closely with funders and development institutions to satisfy their concerns with regards to credit risk and, even more importantly, the currency risk.”
He said these are certainly challenging times, but the company has had encouraging discussions in the past months that have brought positivity around the project.
The estimated capital for the entire project is US$200m with Phase One costing about US$70m. The project implementation agreement which the company is still trying to have can be secured from the Ministry of Finance and Economic Development and is one of the most critical requirements when implementing capital projects.
A capacity of 50MW is planned for the first phase and the company will upgrade to 100MW going forward. Green Rhino Energy, is expected to establish the solar photovoltaic power station which is expected to increase electricity supply on the national grid.
Apart from private players the Zimbabwe Power Company is also in the process of implementing its own solar projects in Gwanda, Matobo and Munyati to ease the country’s energy challenges.
The three proposed solar plants will each generate about 100 megawatts, feeding an additional 300MW into the national grid.
Construction of Gwanda solar photovoltaic power plant will involve the construction of a 15-kilometre 132kV line from the solar plant to the existing Gwanda 132kV substation; a 132kV line bay at the new Gwanda solar plant site; a 132kV line bay at the existing Gwanda 132kV substation, a 20-varb fast response reactor at Gwanda 132kV substation and substation ancillary equipment.
Through increased use of solar, the government hopes to cut residential power usage by 40 percent.
The Zimbabwe Energy Regulatory Authority has managed to licence a number of solar projects to date but there has been little progress thereby forcing the country to rely on Kariba and Hwange and imports as well.
