The ManicaPost
Ray Bande
Senior Reporter
KODAK syndrome is a buzzword in the world of business to describe a company’s general tendency or attitudes.
It has a number of overlapping meanings that include a series of strategic leadership blunders resulting from an institutional or systemic inability to understand prevailing trends or needs.
The Kodak syndrome can also be construed as ‘Short-termism’, a tendency that manifests in inability to develop a new model of doing things because of fear of change.
The country’s energy sector must be ailing from this syndrome, and one needs not to look further than the sector’s business as usual approach to the global reduction of use of coal.
After agriculture and other land use, coal accounts for the second highest greenhouse gas emissions in Zimbabwe.
Given that Climate Change has necessitated the globally veto on coal as a source of energy vis-a-vis our heavy dependence on it, the situation presents a wake-up call.
Chinese President Xi Jinping announced recently to end investment in thermal power plants at a time when Zimbabwe still has Chinese companies involved in several coal-fired projects across the country, itself being a reminder that days of coal use are numbered.
In its abundance in this country, global trends are showing that coal will soon be a stranded asset.
Stranded assets are assets that have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities.
Power utility, Zimbabwe Electricity Supply Authority (ZESA) executive chairman, Dr Sydney Gata, recently told editors on a media tour of Hwange Power Station that: “I have always been aware that there is a date in the future that the world will ban coal as a form of energy. I am pained, like all of us, by the knowledge that in Zimbabwe we are sitting on 26 billion tonnes of coal reserves, which is 834 years equivalent consumption at the rate of consumption, and all of a sudden we have to park that because it is now condemned as one of the major polluters that is changing our climate.”
China has been under pressure to put an end to its coal financing projects abroad.
During a recent United Nations General Assembly address, President Xi said: “China will step up support for other developing countries in developing green, and low-carbon energy, and will not build new coal-fired power projects abroad.”
Sadly, or perhaps fortunately, this is a reality we have to confront with hope given the natural endowments in this part of the globe.
The country generates an average of 1 200 megawatts daily against a peak demand of 2 200 MW, and relies on imports to offset the shortfall, but somehow it is time that the country has to start embarking on a serious environmental friendly initiative to generate that amount of megawatts and even more for export.
Apart from priceless sunlight that beg for major investment in solar energy, the undulating terrain of the Eastern Highlands laced with numerous waterways have proved to be pivotal in the provision of clean energy in hydro-electricity generation.
For obvious reasons, there is now an undeniable need, not only to accept, but also to meet the costs that comes with vibrant hydro-electricity generation in the Eastern Highlands, and other areas where such initiatives can be installed and operated.
Independent Power Producers (IPPs) of Honde Valley are key players in this matrix.
Their relevance and importance, at this moment in the history of our country and region, need not be over-emphasized.
The common excuse
It is easy to say we do not have the money needed to bear the transitional risk clean energy.
After all, it is true, the financial cost is truly huge.
Dr Gata added: “At the same time, we are being told that we have to switch over to renewables, they are eligible, and they are tomorrow’s world. In many parts of Europe, they are already in today’s world. There are two issues about renewables that make it an immediate Plan B for us. Most of the technology is imported.
“We don’t yet have a local industry that fabricates this technology for it to be affordable. There is also a limit to which you can deploy renewables, particularly PV (photovoltaic) solar and wind energy. On top of that, if you look at renewables that are the most popular, they are more secure in a system when they come with storage. Storage like green hydrogen, lithium batteries, but those are expensive.”
However, speaking during a Climate Change media personnel capacitating workshop held in Harare last week, Climate Change and Mitigation expert in the Ministry of Environment, Climate, Tourism and Hospitality Industry Mr Lawrence Mashungu, said: “Currently, remember our reduction is reduction in emission intensity. So in absolute terms, our target is a ticking target. It is not constant.
“Our emissions are going to increase. It is not going to decrease. Remember our emission per year per capita is in the range of two tonnes. For the developed countries, it is around six tonnes. We are looking at getting our emission intensity three tonnes per capita by 2030.
“As more and more renewable sources of energy come into play we will have a reduction in exploitation of those sources of energy that are detrimental to the environment.
“It is very feasible to reduce our dependence on coal. I am sure you will agree with me that it used to be prestigious to be using solar, but now it is everywhere.
“Big industries like in Triangle now are powering their agriculture using solar. Together with other measures like IPPs hydro-electricity, this will eventually have a bearing on the demand on coal. This is what the renewable energy policy is promoting,” he said.
As Mr Mashungu notes, it is feasible and perhaps it is a wholesome change in mindset and attitude that is required as we move towards the age of clean energy.
Ministry of Finance and Economic Development will have to play a central role in the coordination and financing of climate related projects and programmes in line with the country’s national budget, plans, capital projects and programmes.
Promote, do not frustrate hydro IPPs
In Zimbabwe, the whole decarbonisation debates naturally ignite the discussion on the importance of the Independent Power Producers, mainly those in Honde Valley where natural endowments are being harnessed to produce electricity.
By his own admission, Dr Gata said currency risk in the country was one of the major factors keeping new investors away.
“Banks will not come to the table. How can I lend in US dollars to buy equipment that is sold in US dollars to produce electricity that will be sold in local currency?” Dr Gata said.
He underscored Treasury’s refusal to issue the Government guarantees that would help producers secure offshore funding.
Only recently, Zimbabwe’s biggest IPP, Nyangani Renewable Energy, lost an international arbitration involving a currency dispute with the State-owned power distribution firm, an official said.
Nyangani took Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to the International Chamber of Commerce in Johannesburg, South Africa, over US$8,6 million for power delivered from its 15MW Pungwe B hydropower plant in Manicaland.
The arbiter decided that the nation’s law gives ZETDC discretion on whether to pay Nyangani’s USA dollar-denominated power purchasing agreement in USA dollars or Zimbabwe dollars.
NRE managing director, Mr Ian McKersie told the local media that: “This is a disappointing result for Pungwe B, for all operating independent power producers, and the electricity sector as a whole as it does not encourage further investment in the sector.”
The hearing was heard on June 14, and a ruling delivered on October 13.
While power utility could be celebrating this outcome, its far reaching ramifications with regards to investment in clean energy generation could be catastrophic, more so in the decarbonisation efforts.
Developed and developing nations’ burden
There are significant barriers that prevent developing countries from adopting renewable energy plans.
Decarbonisation is often not a priority for less developed countries compared to economic growth, and poverty alleviation.
It is hard enough for rich industrialised countries to tackle carbon reduction goals.
For emerging economies to do the same can be downright daunting, yet rich or poor, it must be done.
It is true that every country must choose its own energy path based on its specific needs and resources, and there is a lot that countries themselves can do to create and improve the conditions for clean energy investment.
But the global challenge of climate change demands global solutions. In other words, the international community has to ensure that all countries have the support that they need to move forward in this critical endeavour.
Thus the International Energy Agency, in its ‘Financing Clean Energy Transitions in Emerging and Developing Economies report’ notes that: “Accelerating clean energy transitions in emerging and developing economies can no longer be just one investment option among many. It has to become a major priority for governments and investors worldwide.
The achievement of the Nationally Determined Contribution (NDCs) target is subject to full implementation by developed countries of their commitments relating to finance, technology and capacity pursuant to Article 4 of the United Nation Framework Convention on Climate Change.
President Mnangagwa is expected to attend the Conference of Parties (COP 26) meeting in the United Kingdom where he will lead a Zimbabwean delegation, and present the country’s mitigation measures and adaptation actions against climate change.
No doubt, this is the platform for developing countries to make their voice heard in unison on the need to have developed countries meet their end of the bargain.
And after all, let us all think Climate Change!
From the little children in kindergarten, and even the common man on the street to the business executives in high offices, it is time to think Climate Change, it is time to see the Climate Change dimension in every aspect of the life we live.
Indeed, it is time that journalists must see the climate change dimension to every story.
Refreshingly, Government of Zimbabwe has made a deliberate commitment to mainstream climate change mitigation and adaptation efforts across policies and programmes at national and sub-national levels with the Ministry of Environment responsible for the overall coordination of NDC implementation and international reporting to the UNFCCC.
Time to walk the talk on Climate Change!
