Transformer manufacturing an investment for power delivery

Zimbabwe’s power distribution capacity can be amplified premised on the local production of power distribution equipment that feeds electricity to both domestic and industrial consumers. Resultantly, increased and constant power supply will ramp up production in all sectors of the economy and improve societal well-being.

The Parliamentary Portfolio Committee for Energy and Power Development chaired by Honourable Joel Gabbuza earlier this year tabled a report ‘On the Manufacturing and Supply of Transformers in Zimbabwe’.

The report highlighted that “that local manufacturers had a capacity to design, manufacture, test and supply an average of 100- 250 transformers per month subject to availability of foreign currency and competitively priced key raw materials.”

The Committee’s document noted that there was scope for downstream industries to augment the production of transformers through local manufacture of related components. In turn, this would reduce the import bill.

“The Committee learnt that the transformer manufacturing sector was heavily reliant on imported materials. As such, there was an opportunity for investors to set up plants to manufacture raw materials such as porcelain and bushings instead of competing to supply transformers to the country. Such investments would also reduce the country’s importation bill and contribute to employment creation,” the Committee reported.

ZESA Enterprises (ZENT), a wholly owned subsidiary of ZESA Holdings, is strategically positioned to serve the local market and the Southern African Development Community (SADC).

ZESA Holdings in a document titled ‘Total Electrification of Zimbabwe- ZESA Strategic Response to Vision 2030’ that provides potential investors with fundamental information on investing in the power sector in Zimbabwe, points out that “ZESA Enterprises has the capacity to manufacture transformers and power line equipment for the power sector in Zimbabwe and the region.”

ZENT also has the capability to manufacture other electricity infrastructure such as concrete poles, substations, line accessories, low-voltage distribution boards, metering cubicles, control panels and gang nails, which are vital for electricity connection in the country.

Apart from ZENT, Zimbabwe has other reputable transformer manufactures such as, Nical Transformers, Hawker Siddeley Engineering (South Wales) and SE Electrical Engineers among a host of others.

Private distribution transformer manufacturers have also voiced for the need to be allowed to participate in the recovery of copper components from faulty transformers. The element is crucial in the transformer manufacturing sector. Currently only CAFCA, a cable producing entity is the only company that has permission to do so.

Venturing into the assembly of Aluminium-wound and dry type transformers will expand the product offering. Aluminium is a cheaper alternative to curb the vandalism of transformers, but it is not as durable as Copper.

Institutions of higher learning can also play a critical role in producing and supplying electricity distribution equipment. Harare Institute of Technology (HIT) under the ambit of Powerfirm Private Limited, a company wholly owned by the technology institute designs and manufactures both oil and dry power distribution transformers. The tertiary education centre supplies various sectors and commercial users.

Local production with the right pricing model can offset the competition of imported transformers coming into the country from China and India. An imported 25 KVA aluminium transformer is pegged between USD1 000 to USD1 800 whilst locally produced units are around USD3 300. In such a scenario Zimbabwean clients prefer buying imported transformers even though they are not as durable as the ones produced locally. Also, the Zimbabwean products at the current prices cannot be competitive in the global industry.

Following on, there is need for the Government to place certain interventions that will improve production capacity such as allowing manufacturers to access foreign currency for the procurement of components that are not available in the country. It is also critical that the power utility, ZESA engages international technology transfer partners to aid with modern technology to improve capacity, efficiency and reliability.

The nation targets to increase the number of households accessing electricity and modern energy from 52.29 percent in 2017 to 100 percent by 2030.