ZESA Holdings official has revealed that the parastatal is actively engaging with mining companies, particularly those in the ferrochrome sector, to encourage them to generate their own electricity.
Eliab Chikwenhere, the acting Chief Executive Officer of ZESA Holdings, projected that electricity consumption is set to almost double in the upcoming year, reaching a peak demand of 3,500MW. This surge is attributed to the establishment of new and expanding mines, as well as the growing number of houses connected to the grid.
Chikwenhere emphasized before the Parliamentary Portfolio Committee on Energy and Power Development on Tuesday, March 19, that mining companies should take responsibility for generating their own power.
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“With the increase in demand from the current 1,950MW and taking into account the new applications we have received, especially in the mining sector, in the coming year, we expect the figure will encroach 3,500MW…
“We are discussing with mining companies, especially in the ferrochrome sector that they have to generate their own power.”
ZESA Holdings and Dinson Holdings, a company developing an iron and steel plant near Mvuma, have inked a tariff agreement. Under this deal, ZESA will provide subsidised electricity to Dinson in exchange for the construction of three renewable energy plants by the iron and steel company.
Dinson’s renewable energy projects encompass a 100MW solar plant at its ferrochrome smelting plant in Selous, another 100MW station powered by wind energy at Manhize, and 70MW from waste heat generated at the iron and steel plant. The main purpose of this electricity will be to support the US$1.5 billion iron and steel plant, scheduled for commissioning in January.