Zesa Holdings has abandoned its US$100 million Mutare Peaking Power Station project amid concerns of high costs of running the facility.
The project which ZESSA was implementing in collaboration with Helcraw was expected to be completed in 2022 with the capacity of generating 120 megawatts.
ZESA had already secured funding from a regional bank for the project. The power utility is said to have already applied for permission to redirect the loan towards other capital projects including strengthening the electricity distribution network and acquisition of new vehicles.
The Sunday Mail was told by sources privy to the development that authorities felt that it was illogical to proceed with the project when the country is experiencing foreign currency shortages. The source said:
Mutare peaking plant was to be fired using diesel although a similar plant in Dema was mothballed about two years ago due to the unsustainable costs of fuel.
So after reviewing the project, a decision was subsequently made that the Mutare project should be abandoned, too.
Peaking power stations also known as peakers operate during peak periods or when the system is under duress, which is when demand is higher than what is usually required.
More: The Sunday Mail