Kariba solar project needs R4.7-billion in funding
Zimbabwe’s industrial electricity consumers and exporters has an aim to raise R4.7-billion (US$250-million) to build the first phase of floating solar panels on the world’s largest dam. A pre-feasibility study revealed that members of the Intensive Energy User Group, which also includes mining companies, will own 52% of a development company for the project to
Kariba solar project needs R4.7-billion in funding
Zimbabwe’s industrial electricity consumers and exporters has an aim to raise R4.7-billion (US$250-million) to build the first phase of floating solar panels on the world’s largest dam.
A pre-feasibility study revealed that members of the Intensive Energy User Group, which also includes mining companies, will own 52% of a development company for the project to be located on the Kariba Dam, between Zimbabwe and Zambia.
The electricity that will be generated by the station, initially planned for 250MW, will be sold to the group and other qualifying customers under a 25-year power-purchase agreement.
At the current moment Zimbabwe is facing acute electricity shortages that have resulted in blackouts lasting more than half a day due to low water levels that stifle generation from a hydropower plant on the dam and a thermal power station that experiences frequent breakdowns.
The excess output could also be exported throughout the region, according to the developers. The Kariba Floating Solar Power Station Development Co said: “It is envisaged that the generated electricity will be fed directly into the national grid for consumption by the IEUG, and/or sold to other suitable off-takers including trading on the Southern African Power Pool,”
The government sovereign wealth fund is set to hold a 10% stake in the company, with the remaining 38% available to investors which includes development banks. Infrastructure investors, which include African Finance Corp and Africa50 as well as private energy companies will also be approached, according to Caleb Dengu, non-executive director at IEUG and a managing partner of CDF Trust and Consulting, who is a promoter of the project.
In an interview in Harare, he said a prospectus is being prepared for a road show.
According to a March report compiled for Zimbabwe Power Co by China Energy Engineering Group, what could possibly be built at the site as well is 1GW of capacity by having 1.8 million photovoltaic panels installed on 146 modular units
“We can save our mining companies from power cuts,” said Dengu, who added that such consumers can pay in sought after US dollars.
