(Ecofin Agency) - Sakunda Holdings has just been awarded a project for the construction of a 200 MW Diesel power ant in Dema. However, the firm which thus enters Zimbabwe’s energy sector says it has more in stock.

Truly, the diversified energy company presented national authorities its 10-year plan to generate 870 MW. “Our solution will allow Zimbabwe to have access to the best equipment. Our generators were all made in 2015 and offer the best operational efficiency. We are able to generate 300 MW in three months,” Sakunda said in a document received by Financial Gazette.

Moreover, the company promised to provide affordable energy. It plans to absorb price fluctuations so as to provide Zimbabwe with stable price energy. For eventual upcoming contracts, it indeed intends to provide mixed power stations that use hydropower and coal bed methane (CBM), in order to be less vulnerable to the fluctuations of oil price. “Our overall power cost is lower than any other offered. Zimbabwe will enjoy significant savings on this solution using our option,” it adds.

Sakunda also said it would develop a 10 MW pilot plant for $200 million. Should this pilot be a success, the group will invest in another 400 MW modular CBM fired power station. 

For now, Sakunda says the Dema station will be the first stage of its project as it plans to fuel it with diesel over three months first before switching to CBM. Using this power source should lower electricity price to $10.45 cents per kWh by 2018 from $15.67 cents now.

These plans have been submitted to ministers of energy and development and are to undergo in-depth review.

Zimbabwe is presently suffering a severe energy crisis characterized by 3-6 hours long power outages that seriously hamper the economy. The main reason behind this crisis is the lack of investments in the energy sector; truly, no new power generation plants have been built since 1960.

Gwladys Johnson