Staff Reporter
Government has received widespread applause from economic experts for granting licences to Independent Power Producers (IPPs), as the country surges ahead with its plans to tackle energy deficit.
This comes after several IPPs were granted licences by the Government to kickstart the generation of a combined total of 271 megawatts of renewable energy.
In exclusive interviews, prominent economists, Persistence Gwanyanya and Elton Ziki expressed optimism about the landmark development on the nation's energy landscape and economic growth.
Gwanyanya welcomed the licencing of IPPs, emphasising the potential for these producers to revolutionise local energy dynamics, highlighting the decentralised nature of IPPs, which brings energy production closer to consumption points.
"This is a commendable move as IPPs contribute significantly to local energy production and distribution; this not only reduces transmission losses but also actively promotes energy independence, a critical aspect for the nation's resilience in the face of evolving energy challenges,” Gwanyanya said.
Furthermore, Gwanyanya underscored the pivotal role of IPPs in stimulating economic growth.
"Aligning with the Second Republic's vision 2030 to become energy self-sufficient is a significant stride for long-term economic development. IPPs bring stability and efficiency to the country’s power supply; they have the potential to act as a linchpin for economic activities across various sectors,” he said.
Gwanyanya noted the financial relief that IPPs could offer, saying that this will not only ease financial burdens on businesses but also afford the Zimbabwe Electrical Supply Authority (ZESA) greater flexibility in their operations.
“IPPs will mitigate the financial challenges that ZESA sometimes faces in terms of operational costs, and this will provide a more responsive and adaptable energy infrastructure,” said Gwanyanya.
On his part, Ziki highlighted Government commitment to fostering growth in the renewable energy sector.
"The licencing of IPPs will introduce a competitive edge to the country's energy market, with the potential benefits of lower prices for consumers. The competitiveness extends beyond pricing as it is also envisioned to the delivery of innovative and efficient solutions tailored to meet the specific needs of consumers.” Ziki said.
The two economists also urged Government to actively monitor IPPs to prevent speculative holding of licences at a time the country was facing power deficit.
