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Home International Customs

Zimbabwe JA Solar wins $179m contract to supply

byCT Report
10/12/2015
in International Customs, Zimbabwe
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HARARE: Nasdaq Stock Exchange-listed JA Solar has won a $179 million contract to supply photo voltaic panels for Munyati solar farm project. JA Solar Holdings, one of the world’s largest manufacturers of high-performance solar power products, made the announcement yesterday.

It said, it has won the contract to supply 100MW of photovoltaic modules to one of the first three large-scale ground-mounted solar power plants. The Munyati solar power project is one of the 300MW projects awarded to three contractors. The other plants will be in Gwanda and Bulawayo. Zimbabwe Power Company is spearheading the initiative.

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Other contractors are ZTE Corporation, to undertake Insukamini project in Bulawayo and Intratrek Zimbabwe, the local firm participating in building of one of Zimbabwe’s first solar plants, in Gwanda. The three projects involve a total PV module supply contract value of $544 million, $179 million of which has been won by JA Solar.

JA Solar will supply the solar modules to Number 17 Metallurgical China Corporation, which was awarded the engineering, procurement and construction (EPC) contract for the Munyati project.

Construction of the Munyati solar plant is expected to start towards end of next year and completion is anticipated at the end of 2017.

Xie Jian, JA Solar executive president said: “Zimbabwe was President Xi’s first stop during his official visit to Africa, signalling that both countries should expect to see greater co-operation in the field of renewable energy.

“Winning the contract to supply PV modules to the Zimbabwe project not only provides opportunities for JA Solar to establish stronger relationships in Zimbabwe, but also helps lay a foundation for the company to develop relationships with other African countries.

“JA Solar will continue its commitment to providing higher-quality solar products for markets across the globe, as we continue to pursue the highest quality in our products in order to best serve our customers.”

The three solar projects are part of ZPC’s Government led initiatives to build more power generation capacity in light of acute deficits negatively plaguing economic activity and household consumption.

Zimbabwe requires an average of 2 200MW at peak of demand, but is only able to generate about 900MW due to constrained capacity resulting from lack of new investment in about two decades.

Its situation has been compounded by a poor hydrological season around Zambezi River’s catchment areas, which has seen water levels in Lake Kariba receding to levels near prescribed bottom limit.

Zimbabwe generates the bulk of its electricity from Kariba South Hydro Power Station, which has installed capacity to churn out about 750MW, but was recently restricted to a maximum output of 475MW.

The country’s other major power station is Hwange Thermal Power Station, which has an installed capacity of 920MW, but is now at average of 470MW due old age, which also causes frequent break downs.

As part of the wider efforts to ameliorate the domestic power crisis, Government has awarded Sino Hydro contracts to expand Kariba South by 300MW and Hwange thermal power station by 600MW.

Each of the two projects is expected to take an average of 42 months to complete, by which time the country is expected to have attained surplus generation, as a host of licences have been dished out to independent producers to complement Government efforts.

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