News / Local
Zimbabwe to reform electricity pricing
15 hrs ago | Views
Zimbabwe is set to introduce regulatory changes in its electricity pricing system to allow producers to sell power at competitive rates, ensuring they can recoup costs and sustain operations.
Energy and Power Development Minister July Moyo revealed the plan last Friday during a Southern African Power Pool (SAPP) Management Committee meeting in Victoria Falls.
Zimbabwe, along with other countries in the region, has struggled to generate enough electricity to meet rising demand due to climate change effects and aging infrastructure. A recent parliamentary report estimated the country's electricity shortfall at nearly 4,000 megawatts.
Moyo emphasized the need for increased private sector participation in power generation and transmission to address the deficit.
"With the regulatory environment changing, we expect to see more and more private sector participation in both generation and transmission investments," he said.
He added that increased energy trading in the region's competitive markets would help the SAPP Coordination Centre generate revenue, thereby easing the financial burden on member utilities.
Additionally, Moyo noted that SAPP is working on a Regional Transmission Infrastructure Financing Facility to unlock blended financing for electricity projects.
"The proposal is an innovative approach to fund transmission lines and accelerate the development of regional interconnectors," he said.
"Once established, the facility is expected to attract new sources of finance from the private sector, green climate funds, and other investors, expediting project development."
Moyo also revealed that the United States government is open to collaborating on coal project development in Africa, acknowledging coal's potential role in the continent's energy future.
The Southern African Power Pool (SAPP) was formed in August 1995 at a SADC summit in South Africa. It has twelve member countries represented by national power utilities and a total of twenty-two members, including operating and market participants. SAPP is the oldest and most advanced power pool in Africa, playing a key role in regional energy trade and development.
Energy and Power Development Minister July Moyo revealed the plan last Friday during a Southern African Power Pool (SAPP) Management Committee meeting in Victoria Falls.
Zimbabwe, along with other countries in the region, has struggled to generate enough electricity to meet rising demand due to climate change effects and aging infrastructure. A recent parliamentary report estimated the country's electricity shortfall at nearly 4,000 megawatts.
Moyo emphasized the need for increased private sector participation in power generation and transmission to address the deficit.
"With the regulatory environment changing, we expect to see more and more private sector participation in both generation and transmission investments," he said.
Additionally, Moyo noted that SAPP is working on a Regional Transmission Infrastructure Financing Facility to unlock blended financing for electricity projects.
"The proposal is an innovative approach to fund transmission lines and accelerate the development of regional interconnectors," he said.
"Once established, the facility is expected to attract new sources of finance from the private sector, green climate funds, and other investors, expediting project development."
Moyo also revealed that the United States government is open to collaborating on coal project development in Africa, acknowledging coal's potential role in the continent's energy future.
The Southern African Power Pool (SAPP) was formed in August 1995 at a SADC summit in South Africa. It has twelve member countries represented by national power utilities and a total of twenty-two members, including operating and market participants. SAPP is the oldest and most advanced power pool in Africa, playing a key role in regional energy trade and development.
Source - The Standard
