PLASTIC pipe manufacturer Proplastics Limited has commissioned a solar plant set to generate 600 000 kilowatt hours (kWh) of electricity annually, in a bid to reduce electricity bills and generator fuel consumption.
The country has been experiencing power outages which now extend to 16 hours a day, forcing businesses to rely heavily on expensive generators, further driving production costs.
In a statement accompanying the company’s financial result for the half year ended June 30, 2024, the group chairman Gregory Sebborn, said the project will result in significant savings for the company.
“With the installation and commissioning of the solar plant now complete, the business is expected to generate about 50 000 kilowatt hours (kWh) of energy per month thus reducing electricity bills and generator fuel consumption. This will result in significant savings reflected in the second half of the year,” Sebborn said.
“Electricity supply remained a huge challenge during the closing months of the period under review as the business continued to encounter significant outages related to load shedding, thereby resorting to the use of the expensive standby generator to power the plant.”
Proplastics chief finance officer Paschal Changunda told the Zimbabwe Independent in an interview that the solar plant will be operating 10 hours per day to supplement the main grid and the generator.
“A total of US$350 000 was invested in the solar project," he said.
"A total of US$23 000 is being spent per month on fuel. This fluctuates depending on the level of power outages, which are intensifying."
For the half year, the company experienced a challenging operating environment owing to exchange rate volatility, severe power outages, and the depreciation of the local currency, and effects of delays in fiscal policy pronouncement coupled with the adverse effects of the El Niño-induced drought.
“These factors created a challenging business environment which saw demand for the group products being subdued. Major projects were stalled with some reduced in size as the market struggled with liquidity," the company said.
"Demand was also affected by the low activity from the Zimbabwean government and its related agencies in the implementation of water reticulation infrastructure projects.
“Exchange rate volatility, which was more prevalent in the first quarter of the year, rendered Zimbabwe dollar transactions difficult which resulted in the USD (United States dollar) being the dominant currency for transacting. The local currency lost value by over 380% on both the official and the alternative markets during the first quarter.”
According to the report, turnover for the first half dropped by 18% to US$8,6 million from US$10,4 million in the prior period.