Zimbabwe aims to lift power output by 40 percent

Thu Sep 15, 2011 11:29am GMT

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HARARE, Sept 15 (Reuters) - Zimbabwe's state electricity company (ZESA) said on Thursday it wanted to raise power output by 400 MW by refurbishing a large thermal plant and two smaller power stations at a combined cost of $245 million.

Zimbabwe produces around 1,000 MW of electricity against peak demand of 2,200 MW due to ageing power plants.

ZESA manager for business planning and development Patrick Chivaura said low tariffs were discouraging independent power producers from entering the market.

"We have engaged a technical consultant and financial advisor to help us approach the market to finance these projects," Chivaura told a mining conference.

He said Zesa had struck an agreement to supply uninterrupted power to mines because they are now paying higher tariffs. The source of this electricity is from imports and some smaller power stations.

This has reduced power outages, which have previously affected Zimbabwean mines, Chivaura said. (Reporting by MacDonald Dzirutwe, editing by Ed Stoddard)

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