Hwange power station

From Global Energy Monitor
(Redirected from Hwange III power station)
Part of the
Global Coal Plant Tracker,
a Global Energy Monitor project.
Download full dataset
Report an error
Related coal trackers:

Hwange power station is an operating power station of at least 1590-megawatts (MW) in Hwange, Matabeleland North, Zimbabwe with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Hwange power station Hwange, Hwange, Matabeleland North, Zimbabwe -18.3831971, 26.4696382 (exact)

The map below shows the exact location of the power station.

Loading map...


Unit-level coordinates (WGS 84):

  • Unit 1, Unit 11, Unit 12, Unit 13, Unit 14, Unit 2, Unit 3, Unit 4, Unit 5, Unit 6: -18.3831971, 26.4696382
  • Unit 10, Unit 7, Unit 8, Unit 9: -18.3835, 26.47

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year
Unit 1 Operating coal: bituminous 120 subcritical 1984
Unit 10 Announced[1] coal: unknown 300 unknown
Unit 11 Announced[2] coal: unknown[2] 300[2] unknown
Unit 12 Announced[2] coal: unknown[2] 300[2] unknown
Unit 13 Announced[2] coal: unknown[2] 300[2] unknown
Unit 14 Announced[2] coal: unknown[2] 300[2] unknown
Unit 2 Operating coal: bituminous 120 subcritical 1986
Unit 3 Operating coal: bituminous 120 subcritical 1985
Unit 4 Operating coal: bituminous 120 subcritical 1983
Unit 5 Operating coal: bituminous 220 subcritical 1986
Unit 6 Operating coal: bituminous 220 subcritical 1987
Unit 7 Operating coal: bituminous 335 subcritical 2023
Unit 8 Operating[3] coal: bituminous 335 subcritical 2024[3]
Unit 9 Announced[1] coal: unknown 300 unknown

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
Unit 1 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 10 Shandong Dingneng New Energy Co Ltd [100%][1] Shandong Dingneng New Energy Co Ltd [100.0%]
Unit 11 Jindal Steel & Power Ltd; ZESA Holdings Ltd[2][2] Jindal Steel & Power Ltd; ZESA Holdings Ltd
Unit 12 Jindal Steel & Power Ltd; ZESA Holdings Ltd[2][2] Jindal Steel & Power Ltd; ZESA Holdings Ltd
Unit 13 Jindal Steel & Power Ltd; ZESA Holdings Ltd[2][2] Jindal Steel & Power Ltd; ZESA Holdings Ltd
Unit 14 Jindal Steel & Power Ltd; ZESA Holdings Ltd[2][2] Jindal Steel & Power Ltd; ZESA Holdings Ltd
Unit 2 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 3 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 4 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 5 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 6 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 7 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 8 Zimbabwe Power Co Ltd [100%] ZESA Holdings Ltd
Unit 9 Shandong Dingneng New Energy Co Ltd [100%][1] Shandong Dingneng New Energy Co Ltd [100.0%]

Project-level coal details

  • Coal source(s): Wankie colliery open cast mine

Background

Hwange power station was built in two stages and consists of 4 units of 120 MW each and 2 units of 220 MW each. Construction of Stage 1 commenced in 1973, but was suspended in 1975 due to economic sanctions imposed on Rhodesia. The 4 x 120MW units were commissioned between 1983 and 1986 and the 2 x 220MW were commissioned in 1986 and 1987. It is owned by the national electricity company Zimbabwe Electricity Supply Authority, also known as ZESA Holdings, and operated by Zesa's energy unit Zimbabwe Power Company.[4]

Water is sourced from the Zambezi River, and coal from the nearby Wankie colliery open cast mine. About 250,000 tonnes of coal are stockpiled on site.[4]

In 2009, Namibia's NamPower made agreements to help ZESA to revive four units at the aging power station in exchange for power deliveries.[5]

Hwange power station is the largest thermal power station in Zimbabwe.[6]

Rehabilitation of existing facility

In May 2017, Standard Bank Group said that it had finalized a US$120 million debt package with ZPC to rehabilitate existing power generator infrastructure at Kariba South Hydro and Hwange Thermal Power Station. The deal aimed at easing Zimbabwe's long-standing power generation deficiency, which provides around 1,000 MW against average demand of 1,400 MW or more. Currently Zimbabwe imports electricity from Mozambique and South Africa; however, acute cash shortages have led to a US$43 million debt with South Africa's Eskom, which now is threatening to curtail the 300 MW of capacity that it is providing to ZESA if the debt is not cleared by the end of May. Hwange power station was only producing 327 MW out of an installed capacity of 920 MW.[7]

In September 2018, it was reported that the Government of India was set to provide a line of credit of US$310 million to Zimbabwe to enhance the lifecycle of the Hwange thermal plant.[8]

In early 2021, the power station operated an average of two units against a target of five units. Unit 3 was on an extended major overhaul. The reliability of Units 1, 4, and 5 was also affected due to overdue planned outages and a February 10, 2021 fire incident which caused extensive damage to Units 1 and 2. In addition, Unit 6 was unavailable in the end of January due to leaking hydrogen coolers.[9]

After being out of service, unit 5 was returned in service in September 2021, improving the station's consistently low output[10] by 150 MW.[11]

In November 2021, a loan facility was being negotiated with India to fix the power station, as an estimated US$300 million was needed to continue work on the old Hwange units.[12]

In November 2022, the Zimbabwe Power Company stated that they expected to begin the refurbishment project, funded by the Export-Import Bank of India, in the third quarter of 2023. The rehabilitation would be conducted in three phases and would give the power station an updated capacity of 880 MW across the six existing units.[13]

In October 2023, ZESA announced that "technical faults" at the power station had reduced power generation and contributed to increased load shedding.[14]

According to reporting from April 2024, rehabilitation of Units 1-6 was ongoing.[15] Shandong Dingneng New Energy Company (SDNEC) would reportedly be involved in rehabilitating the existing units, in addition to building a new expansion at the power station (see below).[16] It transpired as per June 2024 reporting that financing from the Export-Import Bank of India has not been received yet, and in the meantime the Zimbabwe Power Company has borrowed $50 million from Stanbic to kick-start the repowering project. The company now plans to receive $450 million in funding from the Export-Import Bank of India.[17]

In August 2024, Jindal Steel and Power (JSP) and Zesa Holdings announced plans for an $800 million refurbishment of Hwange Units 1–6. JSP and Zesa were expected to sign a memorandum of understanding (MoU) for the refurbishment project, and another MoU for a proposed 1,200 MW expansion (see below). The refurbishment project would reportedly add 800 MW to Hwange’s generation capacity.[18][19]

In September 2024, the Mutapa Investment Fund (MIF) reportedly approved a joint venture between Jindal Africa and Zesa Holdings for the refurbishment. According to reporting at the time, the project was valued at US$350 million for 400 MW.[20] As of October 2024, SDNEC’s previously proposed involvement in rehabilitating the existing units[16] was unclear.

Phase III expansion (Units 7-8)

A project aimed at adding two generation units to Hwange Power Station, known as Phase III, was to be launched in 2000 but stalled due to lack of funds.[21]

The project was later revived. Zimbabwe Power Company, the power generation unit of State-owned power utility Zesa Holdings, plans to expand the power station by 600 MW. The Environmental Impact Assessment (EIA) has been approved. Plans again stalled after the Chinese contractor who won the right to undertake the project, China Machinery Engineering Company, failed to secure funding within eight months. Expansion requires US$1.3 billion to $2 billion. Zesa is seeking other bidders to construct the plant.[22]

In September 2014, Zimbabwe Power Company announced it had finalized negotiations with Chinese contractor Sino Hydro Corporation for the expansion of Hwange Power Station.[23] (Sino Hydro is also doing feasibility studies for the proposed 600 MW Hwange Makomo power station sponsored by Makomo Resources.[24]) The expansion was granted a generation license in January 2015.[25]

Construction was planned to start in 2016, with a planned start date of 2019.[26]

In August 2016, it was reported that financing was planned for completion by end of 2016.[27]

In July 2017, PowerChina signed an engineering, procurement and construction (EPC) contract with Zimbabwe for expanding the power station. In November 2017, China’s state-owned Dongfang Electric Corp signed a contract with ChinaPower to supply three major engines for two 335 MW coal-fired power units at the plant.[28][29]

The groundbreaking ceremony of the project was expected to be held in mid-June 2018, following the release of China Export–Import Bank funds for the project.[30]

In July 2018, a groundbreaking ceremony was held for the expansion. It was planned for commissioning in 2022.[31] In December 2018, the Zimbabwe Power Company (ZPC) said it intended to recruit more than 100 workers on a fixed term contract of up to 36 months for the project.[32]

In March 2019, it was reported that construction work on the project had begun.[33] In August 2019, the expansion of the power station was 18% complete, with commissioning on track for January 2022.[34]

In April 2020, it was reported that work on the expansion was almost 40% complete and on schedule.[35] In June 2021, the work was 62.54% complete instead of the planned 85.9%. The project was affected by Interim Payment Certificate (IPC) outstanding payments as well as the effects of Covid-19.[9]

In August 2021, the work was 68% complete.[36] In December 2021, the work was 76% complete and on track for completion in 2022.[37] In April 2022, the work was 84% complete. Units 7 and 8 were set to be completed in November 2022 and February 2023 respectively.[38]

In November 2022, the Zimbabwe Power Company expected one of the two expansion units to be online by the end of the year. The project's contractor stated that testing of the turbine had begun. The other unit, Unit 8, was slated for commissioning sometime in 2023.[13]

In January 2023, Unit 7 was expected to be commissioned by the end of the month.[39]

In March 2023, Unit 7 was commissioned at a limited capacity, and it was expected to be fully operational in June 2023.[40] In April 2023, the unit was reportedly running successfully.[41]

In May 2023, it was reported that the expansion project for Units 7 and 8 was 98.94% complete. Unit 7 was undergoing final tests and commercial operation was expected to begin on June 29, 2023. Unit 8 had been synchronized with the grid on May 11, but was taken offline for adjustments. Unit 8 was expected to be back online by the end of May 2023, and begin commercial operation on September 28, 2023.[42][43]

In October 2023, ZESA announced that Unit 7 was going to be offline for 30 days for scheduled maintenance. The country had already been experiencing increased load shedding partially due to "technical faults" at Hwange power station.[14]

According to reporting from November 2023, Unit 8 would "soon" be supplying electricity to the national grid.[44]

As of February 1, 2024, Unit 8 was reportedly operating.[45]

In August 2024, a technical fault at Unit 8 led to reduced generation at Hwange and increased load shedding across Zimbabwe.[46]

Financing for Units 7-8

In May 2015, Zimbabwe officials said they expected to achieve financial closure for the Hwange expansion project by the end of the year. The total cost for the project was estimated at US$1.4 billion. The China Export Import Bank (Eximbank) was expected to bankroll the project at nearly US$1.2 billion, while the Zimbabwe Power Company (ZPC) would fund the remaining $0.2 billion.[47]

In December 2015, China agreed to provide a US$1.2 billion loan to add 600 MW of generating capacity to the Hwange station.[48] In addition, that month, it was reported that China would help rehabilitate the plant in addition to expanding it.[49]

In December 2016, the Zimbabwean government approved a US$1 billion loan facility from China Exim Bank. The loan would be paid back over 20 years with a grace period of seven years and an interest rate of 2% per annum. The contract for the expansion was awarded to Sino-Hydro Corporation Ltd. The special purpose vehicle created for overseeing project development was named the Hwange Electricity Supply Company (HESCo), owned by ZPC and Sino-Hydro. In January 2017, ZPC managing director Noah Gwariro said that the company "expects financial closure for the Hwange expansion project by the end of March 2017."[50]

In January 2018, Zimbabwe Power Company said it had raised its equity contribution to the project from Standard Bank South Africa (US$40 million) and Afreximbank (US$76 million). Sinohydro said China Eximbank should now be ready to disperse funds from a US$998 million loan for the plant.[51]

In June 2018, Zimbabwe concluded the loan agreement for US$998 million with the Export-Import Bank of China.[52][51] The Bank provided this amount to the government of Zimbabwe, and the government on-lent to the project, according to IJ Global.[53] Standard Bank contributed USD 40 million and acted as lead arranger, bringing in The Eastern and Southern African Trade and Development Bank (PTA Bank) on a USD120 million total debt package .[53] It therefore appears that Afreximbank did not participate in the final transaction. USD 120 million debt package was provided to Zimbabwe Power Company for both the Hwange expansion project and the Kariba South hydro power plant expansion scheme.[53]

In November 2019, it was reported that Chinese banks had indefinitely suspended US$1.1 billion in financial support for the expansion, citing financial irregularities on the part of the Zimbabwe Government. According to the Zimbabwe Independent, "Chinese investors and financial institutions, including China Eximbank, are also worried about currency and exchange rate volatility which have affected projects they are bankrolling in Zimbabwe."[54][55] However it appeared that the issues have been later resolved. The debt of US$998 million was listed in Zimbabwe's Public Debt report dated November 2023, stating that in the last the last quarter of 2023, China Exim Bank was expected to disburse US$375.1 million to the project. (it was not known if it's the last remaining disbursement or not).[56]

Proposed SDNEC expansion (Units 9-10)

In January 2024, Shandong Dingneng New Energy Company Ltd. (SDNEC) said they planned to "explore the possibility" of constructing a "clean coal" power plant in the Matabeleland North province of Zimbabwe. The company is reportedly one of China's largest suppliers and manufacturers of steam turbines.[57]

In March 2024, representatives from SDNEC were in Zimbabwe to conduct a feasibility study on a 600 MW coal-fired power station. Zimbabwe's Energy and Power Development Minister stated that the company was on a "fact finding trip" and were scouting potential locations for the proposed plant, including Hwange or "elsewhere where they find good coal deposits and also proximity to the grid." The company was also reportedly seeking to build a 200 MW solar plant.[58] Additional reporting from March 2024 indicated that SDNEC was considering expanding the Hwange power station by two units.[59]

According to reporting from April 2024, SDNEC had announced plans to build an expansion at the Hwange power station. The proposed Units 9 and 10 would reportedly add another 600 MW to the power station.[16]

As of July 2024, the Zimbabwe government had reportedly started “preparatory work” for the proposed Units 9 and 10.[60]

Financing for Units 9-10

As per news in March 2024, it appeared that Shandong Dingneng New Energy Company Ltd would finance the construction of the new units.[59]

Proposed Jindal expansion (Units 11-14)

In August 2024, Jindal Steel and Power (JSP) and Zesa Holdings announced plans to expand the Hwange power station by adding four new units totaling 1,200 MW (4 x 300 MW). JSP and Zesa were expected to sign a memorandum of understanding (MoU) for the proposed expansion, and an additional MoU for an 800 MW refurbishment of Hwange’s existing Units 1–6. The two agreements for a combined 2,000 MW of capacity were valued at US$5 billion, which according to Zesa’s executive chairman, was “the biggest single investment this country has ever seen.” Feasibility studies on the expansion were reportedly underway.[18][19] News articles on Jindal’s proposed expansion did not appear to reference the previously proposed expansion by Shandong Dingeng New Energy Company (see above).

In an interview published in October 2024, India’s ambassador to Zimbabwe confirmed that JSP and Zesa Holdings had signed an agreement that would increase Hwange’s capacity by a total of 2,000 MW.[61]

Transmission line

In December 2021, the government commenced construction of a 360 km electricity transmission project linking the power station to Bulawayo.[37] In April 2022, it was reported that 810 of the 875 transmission towers had been placed.[38]

In May 2023, it was reported that the transmission line project was 84.11% complete. The ZPC was reportedly still constructing homes as part of a compensatory housing project for community members impacted by the Hwange expansion project.[42]

Environmental impact

In February 2024, residents of Hwange petitioned the Parliament over air and water pollution allegedly from Hwange power station and local coal mining operations.[62]

According to a March 2024 report on air pollution in Africa by Greenpeace, Hwange power station was among the top ten sulfur dioxide (SO2) pollution hotspots in Africa in 2022. The report noted that government data on emissions in Africa is patchy, so the authors relied on satellite measurements.[63]

Articles and Resources

References

  1. 1.0 1.1 1.2 1.3 https://web.archive.org/web/20240628171731/https://www.hararepost.co.zw/en/the-news/local-news/8477-chinese-company-to-bolster-zim-s-power-capacity-with-hwange-expansion. Archived from the original on 28 June 2024. {{cite web}}: Missing or empty |title= (help)
  2. 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 https://www.herald.co.zw/zim-secures-us5bn-investment-for-power-boost/. {{cite web}}: Missing or empty |title= (help)
  3. 3.0 3.1 https://web.archive.org/web/20240515201002/https://www.herald.co.zw/editorial-comment-ipps-now-moving-into-serious-spending/. Archived from the original on 15 May 2024. {{cite web}}: Missing or empty |title= (help)
  4. 4.0 4.1 "Hwange Power Station," Zimbabwe Power Company website, accessed February 2014
  5. "Botswana, Namibia to ramp up Zim power generation," Engineering News, March 21, 2010
  6. "Hwange Power Station," Zimbabwe Power Company
  7. "South African bank concludes $120 million package for Zesa," Chronicle, May 16, 2017
  8. "India to provide $310m for Zimbabwe’s Hwange thermal plant," Power technology, November 5, 2018
  9. 9.0 9.1 "Hwange Thermal expansion project 62 pc complete," The Herald, June 2, 2021
  10. "Zimbabwe cuts power to some regions after station fault," Reuters, August 4, 2021
  11. "Zimbabwe: Power Supply Improves With One Generator Unit Back On Grid," All Africa, September 18, 2021
  12. "Zimbabwe: U.S.$310m Loan for Byo, Hwange Thermal Units," All Africa, November 15, 2021
  13. 13.0 13.1 "Power projects update: ZPC sets 2023 for Hwange old plant rehab," Newzwire, November 16, 2022
  14. 14.0 14.1 "Hwange Power Station technical faults cause increased load shedding - ZESA," The Chronicle, October 25, 2023
  15. "Repowering of Hwange Units 1-6 to boost power generation," The Sunday News, April 7, 2024
  16. 16.0 16.1 16.2 "Chinese Company to bolster Zim's power capacity with Hwange expansion," Harare Post, April 4, 2024
  17. "$450 million to repower Hwange units 1-6". www.sundaynews.co.zw. June 2024.{{cite web}}: CS1 maint: url-status (link)
  18. 18.0 18.1 “Zim secures US$5bn investment for power boost,” The Herald, August 17, 2024
  19. 19.0 19.1 “Jindal, Zimbabwe in Talks for $800 Million Power-Plant Revamp,” BNN Bloomberg, August 27, 2024
  20. “Zimbabwe's Mutapa Fund clinches US$350m power deal,” Bulawayo 24 News, September 29, 2024
  21. "Electrical Power in Zimbabwe - Overview," MBendi, accessed February 2014
  22. "Funding stalls power project," The Herald, January 9, 2014
  23. "Hwange expansion contract negotiations complete," The Financial Gazette, September 18, 2014
  24. "Makomo Resources in feasibility studies for thermal power station in Hwange," Sunday News Reporter, February 15, 2015
  25. "Hwange gets power generation license," Chronicle, January 14, 2015
  26. "Hwange thermal station expansion on course," The Chronicle, March 26, 2015
  27. "$1,5bn Hwange power plant project gets rolling," cfuzim, August 2, 2016
  28. "China's Dongfang Electric, Power Construction Corp sign deal for Zimbabwe plant," Reuters, November 15, 2017
  29. "Hwange Power Station Expansion". www.nsenergybusiness.com.{{cite web}}: CS1 maint: url-status (link)
  30. "China releases funding for Zimbabwe's largest power station expansion project," Xinhua Net, June 1, 2018
  31. "Hwange Power Station strategic," The Sunday Mail, July 1, 2018
  32. "ZESA To Recruit 100 Workers For Hwange Thermal Power Station Expansion Project," Pindula News, December 3, 2018
  33. "Construction work begins at Hwange," Herald, March 4, 2019
  34. "Work on US$1.5 billion Hwange expansion to be completed by 2022," The Asset, August 7, 2019
  35. "Hwange Power Station expansion on schedule," The Herald, April 6, 2020
  36. "600 MW Hwange expansion project in Zimbabwe at 68% complete," Construction Review Online, August 14, 2021
  37. 37.0 37.1 "New Power Supply for Bulawayo," Chronicle, December 14, 2021
  38. 38.0 38.1 "Hwange Power Station expansion project latest update," Construction Review Online, April 27, 2022
  39. "Hwange Power Station expansion project, Zimbabwe’s largest power station," Construction Review Online, January 6, 2023
  40. "Zimbabwe: History Made as Hwange Unit 7 is Synchronised," all Africa, March 21, 2023
  41. "Power generation rises as Unit 7 performs well," Energy Central, April 4, 2023
  42. 42.0 42.1 "ZPC puts final touches on Hwange expansion, Deka projects," Chronicle, May 17, 2023
  43. "Hwange Power Station Unit 7 Set to Rejoin the Grid, Boosting Zimbabwe’s Power Supply by 300 MW," BNN, May 21, 2023
  44. "Signature projects transform Matabeleland," The Herald, November 17, 2023
  45. "Editorial Comment: IPPs now moving into serious spending," The Herald, February 1, 2024
  46. “Zimbabwe power utility warns of increased blackouts due to fault,” Club of Mozambique, August 25, 2024
  47. "US$1,4 Bn Funding For Hwange Power Station," The Financial Gazette, May 28, 2015
  48. Zimbabwe: China promises $1.2bn loan for Hwange thermal power plant upgrade ESI Africa, December 2, 2015
  49. Godfrey Marawanyika and Chengetai Zvauya, "China Commits $1.2 Billion to Zimbabwe Power Plant as Xi Visits," Bloomberg, December 1, 2015
  50. "Zimbabwe Hwange Power Station Expansion Makes Headways," ESI Africa, January 11, 2017
  51. 51.0 51.1 "Zesa raises $116m for Hwange Thermal Power Station," The Herald, January 26, 2018
  52. "Zim gets $1bn Chinese loan for power generation," Fin24, June 2, 2018
  53. 53.0 53.1 53.2 "Hwange Coal-Fired Power Plant Expansion (690MW)". ijglobal.com. June 2018.{{cite web}}: CS1 maint: url-status (link)
  54. "Chinese suspend US$1,3bn projects," Zimbabwe Independent, October 24, 2019
  55. "China Suspends Hwange Power Plant Refurbishment". /www.greenbuildingafrica.co.za. October 2019.{{cite web}}: CS1 maint: url-status (link)
  56. "Public Debt Report" (PDF). www.zimtreasury.gov.zw. November 2023.{{cite web}}: CS1 maint: url-status (link)
  57. "Govt approaches China over power crisis," NewsDay, January 29, 2024
  58. "800MW energy investment on the cards," The Herald, March 19, 2024
  59. 59.0 59.1 "Chinese company explores investment opportunities in Zim’s energy sector," Harare Post, March 22, 2024
  60. “Zimbabwe to build two new generators at Hwange,” Bulawayo 24, July 30, 2024
  61. “Zimbabwe and India relationship opening large business opportunities, Says Ambassador Kumar,” ZimNow, October 1, 2024
  62. "Pollution: Hwange residents petition Parliament," Chronicle, February 8, 2024
  63. "Major Air Polluters in Africa Unmasked," Greenpeace Africa and Greenpeace Middle East and North Africa, March 2024

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.