‘REDUCED KARIBA DAM POWER WILL BE COSTLY’
THE reduced power generation on the Kariba Dam by Zesco will be costly to Zambia as it will either lead to power rationing or importation of the commodity from Independent Power Producers (IPPs) in other countries, the Energy Forum Zambia (EFZ) has noted.
Speaking to the Daily Nation yesterday in the wake of the reported reduction of power generation by Zambia and Zimbabwe on the Kariba Dam, EFZ chairperson Johnston Chikwanda said the likely option of importing power, which was probable, came with its own challenges.
“It must be noted that 50 percent reduction in power generation is not a meagre amount of electricity. It’s a lot of electricity. Anything which reduces power generation in Zesco’s owned power stations has a direct impact on the revenue base of the struggling power utility company.
While it is not clear how the deficit will be handled, it is possible that the gap may be closed by Independent Power Producers (IPPs).
However, it is in public domain that the cost of purchasing power from IPPs still remains high. This is why Zesco is struggling to pay IPPs in some instances,” Mr. Chikwanda said.
He said whichever decision may apply to counter the power deficit, both Zesco and its counterpart company in Zimbabwe will lose a lot of revenue.
“If the 50 percentage reduction will not lead to electricity rationing, it means power will be procured from other sources to close the delta. However, if there is no procurement from other sources and there is no load shedding, then it means something else.
“Whichever scenario; the fact that authorities have announced a significant reduction in power generation at Kariba Power Station means less revenue generation for Zesco and its counterpart utility in Zimbabwe, and this is of concern even if it’s for a jiffy. It’s a lot money in terms of revenue loss running in millions of US Dollars depending on the duration,” he said.
He said the situation was beyond the control of the Zambezi River Authority (ZRA), Zesco or its counterpart in Zimbabwe but said the development underscored the recognized necessity to continue diversifying the energy mix by significantly including other forms of energy generation in both countries.