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Freight & Trading Weekly

Zim targets power generation potential

25 Jan 2019 - by Liesl Venter
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T he Zimbabwean government has big plans to expand the country’s energy infrastructure as part of its strategy to boost industrial growth. According to Magna Mudyiwa, Zimbabwe’s deputy minister of energy and power development, the country has strong potential for electricity generation. Not only will this boost industrial growth but it will decrease the reliance on energy imports. NKC African economist, Jee-A van der Linde, says plans for industrial growth and infrastructure development are evident in the various investment deals signed by the government in recent months. “Particularly with mining companies,” he told FTW. “These deals are all strategically aimed at developing new infrastructure. Authorities have also focused attention on boosting the country’s energy infrastructure due to persistent power outages. The first quarter of 2018 saw the completion of the Kariba South Extension, and more recently Zimbabwe has begun to expand its Hwange power plant – a move that will likely support mining production.” Mudyiwa said at present energy supply was not reliable, with regional demand far outstripping the supply. “We import around 400 megawatts of electricity from South Africa, Zambia and Mozambique. The high cost of imports is a reality and is anything from 8 to 18 US cents per kWh.” Generating their own power therefore made sense, she said. “Zimbabwe has strong potential for its own electricity generation from renewable energy sources such as solar to hydro and coal. So far only a fraction of the country’s hydro energy potential has been exploited. Solar and biomass resources also remain largely untapped.” Mudyiwa said the country’s Renewable Energy Draft Policy (RED) aimed to come up with a robust legal, regulatory and institutional framework for the development of the sector. “The target is to achieve an installed capacity of 1100 megawatts by 2025. This will be 16.5% of the total capacity by 2025 and excludes hydro developments.” She said by 2030 the country aimed to have achieved 26.5% of its total electricity supply through renewable energy with around 2100 megawatts in installed capacity by then. Whilst the RED was still only in draft form, Mudyiwa said it was hoped to become a legal working document and operational early in 2019. “The policy provides specific incentives for renewable energy projects,” she said. This includes incentives for providing third party sale of power, favourable tax incentives and the introduction of relaxed licence fees. According to Mudyiwa all renewable energy projects were also granted national project status under this policy.

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Zimbabwe has strong potential for its own electricity generation from renewable energy sources such as solar to hydro and coal. – Magna Mudyiwa 

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