FX shortages hamper IPPs

FOREIGN currency shortages and lack of capacity have held back independent power producers (IPPs), denying Zimbabwe an additional 7 000 megawatts (MW) at a time the country is relying on imports from South Africa and Mozambique, Parliament heard last week.
Presenting a report on the state of IPPs in Zimbabwe, chairperson of the Portfolio Committee on Energy and Power Development, Gabbuza Joel Gabuza, said the shortage of electricity was negatively impacting on key economic sectors such as agriculture, mining, industry and commerce.

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“According to the submission by the Zimbabwe Energy Regulatory Authority (Zera), licences for independent power production capable of generating about 6 858,65MW have been issued. However, only 135,8MW is being fed into the main grid by the IPPs that are operating. IPPs, which have a potential to generate about 6 522,35MW are not performing and some of them have been holding on to their licences for as long as 11 years,” Gabuz

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