Staff Reporter

Zimbabwe's energy sector is reportedly on the cusp of a major transformation, with ZESA Holdings at the forefront of these developments.

A well-informed source within the power utility has disclosed ambitious plans involving the construction of two thermal power stations by independent power producers (IPPs), which are set to significantly boost the country's power generation capacity.

According to the source, these power stations will have a staggering combined output of 1,600 megawatts (MW), dwarfing the output of the newly expanded Units 7 and 8 of the Hwange Power Station, which collectively produce 600 MW.

"This is a pivotal moment for Zimbabwe's energy sector," the source emphasised.

The source attributed this upswing in energy prospects to ZESA's adoption of a cost-reflective tariff, which has spurred interest among IPPs.

Following the approval of a tariff adjustment by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), a ZESA subsidiary, the new tariff has been set at US$0.12/kWh, up from the previous rate of US$0.10/kWh established in 2019.

"The shift in policy regarding energy pricing has unlocked significant interest in IPP power plants," the source noted.

Further details provided by the source include the issuance of over 100 licences for small renewable energy IPPs, with the Government planning to extend support to some of these projects.

The source said that these initiatives are projected to contribute an additional 800 MW to the national grid.

The source also shed light on the efforts by the ferrochrome industry, a major consumer of power in Zimbabwe, to mitigate their energy demands.

"Agreements for solar projects to supply power during daylight hours, supplemented by Kariba's hydroelectric power at night, have been signed," the source stated.

This strategy, according to the source, positions Zimbabwe not only to achieve self-sufficiency in energy, but also to emerge as a net exporter of electricity in the region within the next three to four years.

Meanwhile, the source cautioned that short-to-medium-term challenges may persist, particularly with the reduced capacity at the Kariba South Power Station due to hydrological issues affecting the Zambezi River.