Jindal, Zimbabwe in talks for $800m revamp of Hwange power plant
Zimbabwe’s State-owned power utility is in talks with Jindal Steel & Power over an $800-million upgrade of six units at its Hwange facility as it seeks to reduce blackouts.
The plant is the nation’s biggest, with an installed capacity of 1 500 MW and it frequently suffers breakdowns that cause nationwide power cuts.
The refurbishment will take place unit by unit over the next three to four years and almost double the station’s average output to 840 MW, Zesa chairperson Sydney Gata said in an internal circular seen by Bloomberg and verified by the company.
The Southern African nation faces an energy shortfall of as much as 540 MW during the high-demand winter period, which typically runs from June through August, and the utility often triggers rolling blackouts to balance supply and demand. The worst drought in four decades has compounded the crisis, cutting supplies from hydropower plants.
The revamp of units 1 to 6 at Hwange will ensure increased capacity, reliability, and extend their operational life by 15 to 20 years, Gata said.
Contractors are due to finish work on the fifth unit, which Zesa is paying for with internal funds, in April. It will arrange funding for the rest of the upgrade through a special-purpose vehicle, a company spokesperson said
The expansion of Hwange Units 7 and 8, commissioned by President Emmerson Mnangagwa last year, carries loan obligations that average $36-million a month as well as other undisclosed commitments to the African Export-Import Bank, according to the circular.
Jindal is also expected invest in an additional four new units at Hwange, which will add 1 200 MW of new capacity, Zesa said in the circular. Feasibility studies for the project have started, it said.
Zesa plans to install a 1 800 MWh battery-storage system to help meet electricity demand during morning and evening peaks, and has developed sites for solar-power generation of 400 MW, according to the circular.
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