ZESA Signs Tarriff Agreement With Dinson Holdings


Zesa Holdings and Dinson Holdings which is developing the iron and steel plant at Manhize near Mvuma yesterday signed a tariff agreement that will see the power utility supplying subsidised electricity in return for the construction of three renewable energy plants by the iron and steel company.

The tariff agreement was signed by Zesa executive chairman, Dr Sydney Gata and Dinson’s chairman Mr Chen Shangsong.

The three plants are expected to provide 270MW, which will primarily be used at the US$1,5 billion iron and steel plant set to be commissioned in January.

Dinson is constructing a 100 MW solar plant at its ferrochrome smelting plant in Selous, another 100 MW at Manhize powered by wind energy and a 70 MW to be produced from heat generated at the iron and steel plant.

Dr Gata yesterday said the signing of the agreement was a major milestone to the development of the electricity sector and other related sectors.
Today (yesterday), we are signing an agreement they call the tariff agreement, but its more than that because this agreement will ensure that power would be supplied to the ferrochrome sector of their investment at a sustainable tariff, it is a subsidised tariff because everywhere in the world ferrochrome industry energy costs are subsidised.

“Zesa has deployed some ingenuity that will put an end to the subsidy by causing the ferrochrome industry to invest in their own PV solar plant which will be deployed to supply them with cheaper power, cleaner power supplemented by Kariba in terms of when the intensity of the sun is not there or at night,” Dr Gata said.

Tari Mudahondo

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