Zimbabwe’s energy landscape is undergoing a significant transformation, bringing hope to millions who have endured hours of power outages. The recent decision to adjust tariffs to better reflect actual costs has sparked a surge of investments in the energy sector, paving the way for a brighter future.
Sydney Gata, the Chairman of the Zimbabwe Electricity Supply Authority (ZESA) board, has revealed that approximately 3,000 megawatts of energy projects are currently in development, which could drastically alleviate the ongoing power crisis.
Speaking at an energy summit in Victoria Falls, Gata expressed optimism about the influx of investments. “Immediately after the tariffs were corrected, we called in industry, mining in particular, and told them that now they can also invest in electricity infrastructure,” he stated.
He emphasised that miners must no longer expect the government to shoulder the energy risk for their operations. “To our surprise, there was a lot of positive response,” he added, highlighting the collaborative spirit amongst stakeholders.
Among the promising projects set to commence next year are the refurbishment of coal-fired plants by Jindal Steel and Power, alongside solar power facilities spearheaded by Tsingshan Holding Group’s Afrochine Smelting and PPC. These initiatives are expected to significantly reduce the severe power outages exacerbated by a prolonged drought, which has hampered hydro-electricity generation at the Kariba Dam, the country’s primary energy source.
The situation at Kariba is dire, with the power station currently generating only a tenth of its installed capacity of 1,050 megawatts. As of mid-November, total electricity generation across Zimbabwe stood at just 1,189 megawatts, almost half of the national demand. Gata noted that high demand from the mining sector, which is experiencing an annual growth rate of 9% driven by lithium, coal, iron, and steel, has further compounded the shortfall. Isaac Kwesu, Chief Executive Officer of the Zimbabwe Chamber of Mines, revealed that the sector currently requires around 700 megawatts and anticipates a need for approximately 2,000 megawatts within the next three to five years—far exceeding current generation capacity.
ZESA’s roadmap indicates that power cuts could cease by late next year, with plans to end electricity imports by 2026. Zimbabwe currently imports electricity primarily from Mozambique and South Africa’s Eskom Holdings, a reliance that Gata aims to diminish as domestic production ramps up.
However, not all prospects are positive. The Batoka Gorge Hydroelectric Project, touted as a long-term solution to the energy crisis affecting both Zimbabwe and Zambia, faces substantial challenges that could jeopardise its future. Despite being envisioned since 1972, the multi-billion-dollar power plant on the Zambezi River has yet to break ground. Gata described the project as being fraught with risks, stating, “The project has not seen the light of day since 42 years ago. One of the reasons is that there has not been an exhaustive review of markets and also hydrology.”
He highlighted the need for thorough feasibility studies, which have been lacking in the project’s history. “Decisions were being made at a political level without regard to the position of technocrats,” Gata said, stressing the importance of aligning political actions with technical insights. He expressed concern over the lack of comprehensive market studies and the need for updated hydrological models that could address the challenges faced by the Batoka project.
As Zimbabweans and Zambians grapple with power outages lasting over 15 hours a day, the urgency for effective solutions is palpable. The depressed generation capacity, particularly at the Kariba power station, has left citizens and businesses in the lurch. Gata pointed out that as of this week, Kariba was generating a mere 124 megawatts, highlighting the critical need for both immediate and long-term strategies to address energy deficits.
The Batoka project has been revitalised as a priority for both Zimbabwe and Zambia since 2014, following previous setbacks due to political instability and funding issues. However, Gata remains cautious about the project’s feasibility, citing “load factor risk” and “load profile risk” as critical challenges that need to be addressed through rigorous studies. “There are certain hydrological models and models of investment that can overcome this ugly picture,” he remarked, indicating that the potential for success exists if adequately explored.
The Zambezi River Authority (ZRA), which oversees the river’s management, has a pivotal role in the project, but Gata’s comments suggest that comprehensive planning and collaboration are essential for its eventual realisation. “Batoka, as it stands now, is a victim of load factor risk,” he stated, calling for a more honest and relevant market study to ensure the project meets current and future demands.
