Holistic approach needed to end power cuts

Yesterday, Zimbabwe’s second-largest power station Hwange did not generate electricity due to technical challenges.

The power station has an installed capacity of 920MW.

This left the burden on Kariba which generated 853MW against an installed capacity of 1050MW.

Munyati and Harare weighed in, generating 14MW and 11MW respectively.

In total, Zimbabwe shared 878MW which was half of the demand, explaining the rolling power cuts that are biting companies, farmers and households.

The power cuts do not come as a surprise due to the ageing machinery at Hwange and the failure by the government to put in place a favourable environment for the independent power producers (IPPs).

Statistics show that 19 out of the 95 licensed IPPs are operational but are largely generating electricity for their own use and not much is being fed into the national grid.

When fully operational the 95 IPPs will generate 8000MW which is more than the demand, making Zimbabwe a power exporter.

The rolling power cuts have hit the economy hard with industry warning of a shortage of basic commodities as production has been disrupted.

Using alternative sources such as diesel-powered generators would push up the cost of production, which affects exports.

Wheat farmers are crying foul after experiencing power cuts which saw the constituency struggling to complete irrigation cycles during the winter cropping season.

The power cuts came despite Cabinet’s assurance that 100MW would be ring-fenced for farmers.

This threatens the bumper wheat output projected this year.

A low output means more foreign currency for imports which will squeeze the forex position which recorded a US$2.6bn surplus in the year to August 31.

The central bank’s Monetary Policy Committee has projected a stable exchange rate and prices emanating from a favourable external position.

This will be affected if the power cuts persist.

This new round of power cuts should jolt stakeholders to come up with a lasting solution.

For companies, relying solely on the power utility is a recipe for disaster.

The admission by Zesa executive chairman Sydney Gata that companies should import their own power, should have been a warning that dark days ahead.

A number of miners have been forward-looking and investing in solar.

There should be incentives for companies to invest in solar such that the excess power is fed onto the national grid.

Power cuts will remain with companies and households until expansion works at Hwange are completed.

That alone will not guarantee uninterrupted power supplies as a number of companies are coming on board putting more pressure on demand.