Page 10 - AfrElec Week 13 2022

AfrElec COAL GENERATION AfrElec

RioZim seeks alternative funder

for 2,800-MW coal-fired plant

after Chinese pullout

ZIMBABWE A Zimbabwean mining and energy company respectively.
is now looking for alternative funders to build “The energy policy juncture Zimbabwe now
a coal-fired electricity generation plant after a finds itself at is emblematic of what many devel-
Chinese bank pulled out of the project, Reuters oping countries around the world are facing,”
reports. Leo Roberts, UK-based research manager who
RioZim Ltd had expected China’s largest focuses on coal transition at climate think tank
bank, the Industrial and Commercial Bank of E3G told Reuters.
China (ICBC), to help build the 2,800MW facil- RioZim’s energy division, Rio Energy, said.
ity at Gokwe, in central Zimbabwe. ICBC was, “We are still in the market to fund the project and
according to its 2019 expression of interest, to we will work with all possible funders, including
fund 85% of the project and the Standard Bank the Chinese.”
had agreed to fund the remainder, reports at the It is also considering transforming the plant
time said. to a gas-fired one but that is “subject to the out-
China Minsheng Banking Corporation Ltd come of feasibility studies” and no time frame for
was also cited as a possible source of money for those has been set.
the plant. However, in September 2021, Beijing ICBC told representatives of environmental
announced it was halting funding for coal plants non-governmental organisations in a June 2021
abroad as part of its commitment to reducing meeting that the bank would no longer finance
carbon emissions. the Sengwa project, according to two people who
“The effort by RioZim Ltd, one of Zimbabwe’s attended the meeting, Reuters said.
biggest mining and energy companies, reflects Development of another planned coal power
how China’s recent U-turn on foreign coal project at Lusulu east of Hwange is uncertain,
financing is forcing developing nations across PER Lusulu Power, the Harare-based energy
Africa and Asia to rethink their energy plans,” company behind the plant said. It also was bank-
Reuters writes. ing on Chinese support.
Energy and climate specialists, the global A Zimbabwe government spokesperson
news agency says, are watching to see the impact, declined to comment on the status of RioZim
including whether it will force a speedier shift to and PER Lusulu projects but insisted the coun-
cleaner energy, result in other funders stepping try has the right to exploit its coal resources if
in or lead to power shortages. needed and would not “sacrifice growth pros-
Zimbabwe, which already suffers from a lack pects on the altar of arguments to do with the
of electricity, has among the biggest coal reserves environment.”
in Africa. It generates almost half of its energy Sydney Gata, executive chairman of the
needs from coal plants in Hwange, west of the Zimbabwe Electricity Supply Authority, said,
country. “Renewables are not an immediate plan B for
China EXIM Bank agreed in December 2015 Zimbabwe.”
to provide a $1.2bn loan to expand Hwange China’s foreign ministry also didn’t respond
Thermal Power Station, Zimbabwe’s largest to Reuters’ questions on both projects but said
plant with a name-plate capacity of 920MW. The the Asian giant “will increase its support to
bank is building two units to produce an addi- Zimbabwe’s development of renewable energy
tional 600MW. Chinese companies Sino Hydro power projects, and help Zimbabwe’s sustainable
and Dongfang Electric Corporation and build- development.”™
ing the facility and providing the machinery,

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