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Dormant Independent Power Producers May Lose Licences

Dormant Independent Power Producers May Lose Licences

The government has warned that the licences of independent power producers (IPPs) who have failed to provide electricity under their agreement with the State could be cancelled.

Energy and Power Development Deputy Minister Magna Mudyiwa on Thursday told Senators that IPPs should be generating more than 2 000 megawatts but are currently generating 15 megawatts.

Responding to questions in the Senate yesterday, Mudyiwa said the Zimbabwe Energy Regulatory Authority (ZERA) will review the licences. Said Mudyiwa:

There were IPPs with no money and they started looking for money when they got the licences.

If all IPPs had solar plants as what they had claimed when they applied for licences, we could have over 2 000MW coming from IPPs onto the grid.

We have told ZERA to relook at the licences they issued. Some were holding on to licences for more than five years.

Others are using the electricity they generate for their own consumption and not directing any to the national grid.

Lawmakers said some IPP licence holders were holding on to the certificates for speculative purposes. | The Herald

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