Zimbabwe Agrees $ 455 Million Deal with Jindal’s Africa Unit
Zimbabwe has finalized a $455 million, 15-year concession agreement with the Africa-based division of India’s Jindal Steel for the renovation of a 920 megawatt coal-powered plant, the energy minister stated. The maintenance of six aging units at the Hwange thermal power station is anticipated to last four years, July Moyo stated in a post-cabinet briefing on Tuesday evening. Jindal Africa will recuperate its investment through revenue earned from electricity sales from the facility.
The Southern African country presently satisfies only about half of its 2,000 MW electricity requirement and undergoes regular, prolonged power outages because of decreasing capacity at its old power stations.
The largest plant in the country, Hwange, with a capacity of 1,520 MW, was enhanced in 2023 with two newly commissioned units, increasing its output by 600 MW. However, its older units were constructed in the 1980s and are functioning at one-third of their capacity because of malfunctions.
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The Kariba hydropower facility, constructed in the 1960s, finalized a 300 MW enhancement in 2018, increasing its capacity to 1,050 MW. Nevertheless, its ability to generate power has been impacted by drought in recent years.
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In August, India's power generation increased at its quickest rate since March, according to data from the national grid operator, driven by heightened manufacturing activity due to robust demand. Coal generally represents around seventy-five percent of yearly electricity production.
According to Vikram V, vice president of corporate ratings at Moody's unit ICRA, power demand is anticipated to rise during the September and December quarters following a sluggish June quarter, as the monsoon winds down this month and industrial activity increases.
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In August, India's manufacturing sector experienced its highest growth since February 2008. Sectors represent fifty percent of national energy usage. Electricity consumption has decreased this year because of a general industrial decline and significant rainfall impacting cooling needs, although it began to rebound in July.