ZESA HOLDINGS (PVT) LIMITED

PRESENTATION ON
POWER GENERATION OPTIONS
BY
O. NYATANGA
GENERAL MANAGER
CORPORATE AFFAIRS

PRESENTATION OVERVIEW
1. Power Sector Reforms In
Zimbabwe
- Legislation
- New ESI Structure

2. Electricity Generation Information

3. Generation Expansion Projects

Justification
The Projects
Western Power Plant
- Gokwe North

THE NEW ESI STRUCTURE

MINISTRY OF ENERGY & POWER DEVELOPMENT
Z
E
R
C

IPPs

ZESA HOLDINGS (PVT) LTD

ZPC

ZETCO

ZEDC

RURAL ELECTRIFICATION FUND

ZESA ENT. POWERTEL

THE NEW ESI STRUCTURE

MINISTER OF ENERGY AND POWER DEVELOPMENT

ZESA HOLDINGS (Pvt) Ltd

National
Generation
Company

National
Transmission
Company

National
Distribution
Company

ZESA
Enterprises

PowerTel

ELECTRICITY SECTOR REFORMS

Reform Objectives
Availability
Accessibility
Affordability

REGIONAL INVESTMENT
OPPORTUNITIES

ELECTRICITY GENERATION
INFORMATION

ELECTRICITY GENERATION
INFORMATION
CURRENT POWER STATIONS
POWER
STATION
Hwange
Power
Station
Kariba Power
Station
3 x Small
Thermals
TOTALS

TYPE OF
STATION

INSTALLED
CAPACITY

DEPENDABLE
CAPACITY

Thermal

920 MW

780 MW

Hydro

750 MW

750 MW

Thermal

270 MW

170 MW

1 940 MW

1 700 MW

LOCATION OF POWER STATIONS

Existing Power Sources in Zimbabwe

MOZAMBIQUE

ZAMBIA
KARIBA SOUTH
750 MW
Mutorashanga
Alaska

HARARE

Bindura

Norton
Dema
Empress

HWANGE
920 MW

MUNYATI

Sherwood

Orange Grove

Haven
Chertsey

BULAWAYO
Insukamini

Marvel

Tokwe

Plumtree

Triangle

Beitbridge

BOTSWANA
RSA

GENERATION EXPANSION
PROJECTS
:
THE JUSTIFICATION

GENERATION EXPANSION PROJECTS

JUSTIFICATION

Current Supply-Demand Situation

Internal Dependable Capacity
1700 MW
Imports through bilateral agreements 650 MW
Available Maximum Capacity
2350 MW
Maximum Demand
2100 MW

Future Supply-Demand Situation

Zimbabwe will require an additional 1750MW by 2007 made
up of the following:
Import Displacement
650 MW
Expanded Rural Electrification Program 450 MW
GDP Growth/New Investments
400MW
Spinning Reserve
250 MW

JUSTIFICATION
Demand and Energy Forecast for Zimbabwe (2005 2011)
16000

3100

14000

2600

12000

2100
1600

8000
1100

6000

MW

Gwh

10000

600

4000

100

2000
0

-400
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Year

Current Generation
Capacity

Historical Energy

Historical Demand

Projected Energy

Projected Demand

ZIMBABWES PLANNED SHORT TERM GENERATION PROJECTS

ZAMBIA

MOZAMBIQUE

KARIBA SOUTH
EXTENSION
Kariba

Mutorashanga
Harare P/S

Alaska

Norton

Bindura
Harare
Warren
Dema

HWANGE
EXPANSION

Empress

3I5 km

LUPANE
CBM

Orange Grove

Haven
Chertsey

182 km

183 km

Munyati P/S

Sherwood

Byo P/S
Marvel

Tokwe

Insukamini
Plumtree

40km

Triangle

Beitbridge

BOTSWANA
RSA

ZIMBABWE GRID WITH PROPOSED PROJECTS

ZAMBIA

MOZAMBIQUE

KARIBA SOUTH EXTN

Kariba

161km Up to the Border

Mutorashanga

GOKWE NTH

Livingston-ZAMBIA
2 X 70km

110 km

Dema

255 km

HWANGE

Gairezi Mini Hydro

Ngezi

Empress

3I5 km

Bindura
Harare
Warren

Norton

200 km

BATOKA

Harare P/S

Alaska

I50 km

WESTERN POWER

Munyati P/S

Sherwood

LUPANE

385 km

Orange Grove

Haven

CONDO

Chertsey

182 km

183 km

Byo P/S

Osborne Mini Hydro

60 km

310km

Rusitu Mini Hydro

Mutirikwi Mini Hydro

Marvel

Tokwe

Insukamini
Siya Mini Hydro
Plumtree

40km

Manyuchi Mini Hydro

161km Up to the Border

Beitbridge

BOTSWANA
RSA

280 km

Triangle

GENERATION EXPANSION PROJECTS

JUSTIFICATION

Energy Security Requirement

- Power Deficit in SADC Region (SAPP) in 2007

- Increase in Demand Against Limited Growth

in Supply
- New Imports Contracts Required Annually in
Constrained Supply Situation (2005-2007)

Gabon

Nairobi

Rwanda

Dem Rep
of the Congo

Brazzaville

Kenya

Congo

Burundi

Kinshasa

Tanzania

Luanda

Angola

SAPP
GRID

Malawi
Zambia

Lilongwe

Lusaka

H
H

H
H

Harare

Mozambique

T
H
H

Namibia

Zimbabwe

Botswana
H

Windhoek

T
ET

Gaborone
Pretoria
Johannesburg
South Africa

ETET
ET
ET
ETET
ETET ET
ET
ET

P
H

Lesotho

Cape Town

N
P

Maputo
Mbabane
Swaziland

H
P
T
ET

Hydro station
Pumped storage scheme
Thermal Station
Eskom thermal station

GENERATION EXPANSION PROJECTS

JUSTIFICATION
16000

Supply gap
beyond
2007

14000
12000
10000

Demand
Local Gen
Imports

8000
6000
4000
2000
0

2002

2003

2004

2005

2006

2007

Annual Energy Supply and Demand in GWh

GENERATION EXPANSION PROJECTS

JUSTIFICATION
To meet growing requirements of the economy
(EREP, EEUID, New Mines, )
Replace ageing power plants
Alternative to hydro generators prone to
drought (Hydrological Risk) in the SAPP (SADC)
Region

GENERATION EXPANSION PROJECTS

JUSTIFICATION
The least-cost generation option for
commissioning in three years
Largest IPP in SADC (SAPP) when completed
Premium power exports to SAPP post 2007
Large coal deposits (30 billion tonnes reserves)

COALFIELDS IN ZIMBABWE

KNOWN COAL RESOURCES

COAL DEPOSIT
Mid-Zambezi
Hwange
Chaba
W estern area
Entuba
Lubimbi
Lusulu
Sengwa
Lubu-Sebungu
Marowa
Sinamatella
Sub Total
Sabi-Limpopo
Sessami- Kaonga
Bubi
Sabi
Tuli
Sub Total
GRAND TOTAL

INSITU (million tonnes)

No. of Drill Holes

418
103
952
532
21 083
1200
400
83
14
96
24 881

3 900
150
26
34
124
12
50
5
3
?
4 304

1000
60
569
115
1 744
26 625

12
13
12
5
42
4 346

PRODUCTION HISTORY
COAL PRODUCTION TRENDS

HPS

HCC

TOTAL COAL

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

1989

1988

1987

1986

1985

1984

1983

1982

1981

1980

7000000
6000000
5000000
4000000
3000000
2000000
1000000
0

WESTERN
POWER PROJECT

WESTERN POWER PROJECT

WESTERN POWER PROJECT

Project Salient Features
vSteam Coal
1billion tonnes steam coal reserves
900 million tonnes from Western
100 million tonnes from Sinamatela
11m thickness for full seam development for Western
4.5m thickness for full development for Sinamatela
15-30 % ash content
Dragline investment required
0. 8% sulphur content

WESTERN POWER PROJECT

Project Salient Features
vCoking Coal
140 million tonnes coking coal reserves
128 million tonnes requires underground mining up
to 350m
12 million tonnes requires open cast mining

3.9m thickness for underground mining

2.4m thickness for open cast mining
Ash Content below 13%

WESTERN POWER PROJECT

Project Salient Features
4 x 300 MW generators (1 200MW) OR 4 x 600
MW generators
Cost of project : US$1.4 billion for 1 200MW or
US$2.4 billion for 2 400 MW
Dependable Capacity : 1 080 MW on 1 400 MW
station or 1920 MW on 2 400 MW station
2 x 420kV line connections to Insukamini

WESTERN POWER PROJECT

Project Salient Features
Levelised Electricity Tariff : +/- USc4.5/kWh
IRR : 18%
Coal Consumption : 5.0 million tonnes/year
An export market Power Station

WESTERN POWER PROJECT

THE PROJECT FINANCING PLAN : 1 200 MW
SOURCE OF
FUNDING

US$
MILLION

% OF
TOTAL

Foreign (EPC
Contract)

980

70.0

Local (Own
Funding)

420

30.0

1 400

100.0

Total

WESTERN POWER PROJECT

THE PROJECT FINANCING PLAN : 2 400 MW
SOURCE OF
FUNDING
Foreign (EPC
Contract)
Local (Own
Funding)
Total

US$
MILLION

% OF
TOTAL

1 680

70.0

720

30.0

2 400

100.0

THANK YOU

GOKWE NORTH
POWER PROJECT

Gokwe North Project

LOCATION
MOZAMBIQUE

ZAMBIA

Kariba
Gokwe
North

Mutorashanga
Harare
Norton
Chakari

HWANGE

Bindura

Dema

Munyati P/S

Sherwood
Haven

Insukamini
Marvel

Orange Grove

Chertsey

Tokwe

Bulawayo

BOTSWANA
KEY

Triangle
EXISTING POWER STATION
EXISTING PRIMARY TRANSMISSION SYSTEM

RSA

SITE LOCATION

GOKWE NORTH POWER PROJECT

Project Salient Features
1,3 billion tonnes coal reserves
4 735 ha coal mining area
22m thickness for full seam development

GOKWE NORTH POWER PROJECT

Project Salient Features
21.6% ash content
0.38% sulphur content
No dragline investment required
Conveyor belt used to deliver coal to power
station

GOKWE NORTH POWER PROJECT

Project Salient Features
4 x 350 MW generators (1 400MW)
Cost of project : US$1.68 billion
Dependable Capacity : 1 283 MW
2 x 420kV line connections to Alaska and
Chakari

GOKWE NORTH POWER PROJECT

Project Salient Features
Levelised Electricity Tariff - USc4.52-5.22/kWh
IRR : 13.79% -19.76%
Coal Consumption : 5.4 million tonnes/year
Power station located 2km from mine

GOKWE NORTH POWER PROJECT

Project Salient Features
Power station to occupy 40ha
Water pumped from Lake Kariba (85km)
Water used for wet cooling system, industrial,
mine and township/domestic purposes

Possible Cooling System Air Cooling

Recommended Cooling System Indirect

Cooling

Recommended Cooling System

Indirect Cooling :

85 km of water pipeline from Lake Kariba

POSSIBLE AGREEMENT WITH GOVERNMENT

Power Purchaser

Plant

Financier
Re-

Loans payment

O & M Contractor

Service Money
s
$

Project
Company

Money
$

Fuel Supplier

Fuel

Capital

PPA
Plant Supplier

LOAN
O&M

(IPP)

FSA
PPC

Revenue
$

Power
GWh

GOKWE NORTH POWER PROJECT

THE PROJECT FINANCING PLAN
SOURCE OF
FUNDING
Foreign (EPC
Contract)
Local (Own
Funding)
Total

US$
MILLION

% OF
TOTAL

1 030

61.3

650

38.7

1 680

100.0

THANK YOU

GOVERNMENT INCENTIVES
1. Independent Energy/Price Regulation
2. Tax Holidays for new investment
3. Dividend and Profit Repatriation
4. Other investment incentives