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IPPs unveil 16 000MW power project in Zimbabwe
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Private players are spearheading over 16,000 megawatts (MW) worth of power generation projects across Zimbabwe to help ease the country's worsening electricity shortage, Intensive Energy Users Group (IEUG) chairperson Eddie Cross has revealed.
Speaking during the Chamber of Mines of Zimbabwe's annual conference held recently in Victoria Falls, Cross highlighted that independent power producers (IPPs), mainly from the mining and industrial sectors, are investing heavily in solar, coal, and hydroelectric projects. This surge in private investment is aimed at securing reliable power supplies amid persistent blackouts and rising electricity tariffs that continue to plague Zimbabwe's economy.
Zimbabwe's state power utility, Zesa Holdings, faces crippling capital requirements estimated at US$2 billion, a financial barrier that limits its ability to provide steady power generation and meet growing demand. Zimbabwe's peak electricity demand now exceeds 2,000MW, but actual generation fluctuates between 1,000MW and 1,400MW due to capacity constraints at the Kariba South Hydro and Hwange thermal power stations. These shortages have left many economic sectors vulnerable to load-shedding and irregular electricity supply.
Cross said the IEUG, which represents the country's largest electricity consumers in mining, manufacturing, and agriculture, has accepted the challenge to help solve the crisis. According to him, private sector-led projects currently under development include 2,000MW of solar, 2,000MW of coal-fired, and 12,000MW of hydroelectric power.
"If we can deliver this at competitive rates, we will solve our problems as the private sector," Cross said.
He noted that five coal-fired power stations and four hydroelectric plants are under construction, with most financing sourced from Chinese investors. The expanding lithium mining sector alone is expected to require 350MW of power by the end of this year, while ferrochrome producers need up to 2,000MW to sustain production.
"The Chinese business community is leading that investment. They are putting their own money on the table because they realise Zesa can no longer carry this load. Zesa told them, ‘If you need power, create it,'" Cross explained.
One success story he highlighted was Blanket Mine, which has leveraged solar power generated through IEUG initiatives to maintain uninterrupted production.
"In 2024, we supplied Blanket Mine with US$17 million worth of privately generated electricity, resulting in increased revenue for the mine. Multiply that impact across 600 gold mines and imagine the national benefit," Cross said.
Cross also revealed that the European Union and the British government are now providing concessional financing for Zimbabwe's solar and energy transition projects, signaling a significant policy shift toward green and decentralized energy solutions.
"It's a clear sign that the world is moving toward decentralized, sustainable energy, and we must move with it," he said.
On the government's side, Zimbabwe Electricity Transmission and Distribution Company (ZETDC) senior manager for electricity trading and system operations, John Diya, defended the controversial requirement for mining sector players to deposit funds into escrow accounts to finance power imports. He explained that these funds are essential for imports, insurance, legacy debts, and critical spares.
"If we released those funds, as some clients demand, we'd lose the ability to raise money for imports. That would collapse the whole system," Diya said.
As Zimbabwe battles a fragile power sector, it is clear that private sector involvement, coupled with international support and government oversight, will play a crucial role in closing the electricity gap and sustaining economic growth.
Speaking during the Chamber of Mines of Zimbabwe's annual conference held recently in Victoria Falls, Cross highlighted that independent power producers (IPPs), mainly from the mining and industrial sectors, are investing heavily in solar, coal, and hydroelectric projects. This surge in private investment is aimed at securing reliable power supplies amid persistent blackouts and rising electricity tariffs that continue to plague Zimbabwe's economy.
Zimbabwe's state power utility, Zesa Holdings, faces crippling capital requirements estimated at US$2 billion, a financial barrier that limits its ability to provide steady power generation and meet growing demand. Zimbabwe's peak electricity demand now exceeds 2,000MW, but actual generation fluctuates between 1,000MW and 1,400MW due to capacity constraints at the Kariba South Hydro and Hwange thermal power stations. These shortages have left many economic sectors vulnerable to load-shedding and irregular electricity supply.
Cross said the IEUG, which represents the country's largest electricity consumers in mining, manufacturing, and agriculture, has accepted the challenge to help solve the crisis. According to him, private sector-led projects currently under development include 2,000MW of solar, 2,000MW of coal-fired, and 12,000MW of hydroelectric power.
"If we can deliver this at competitive rates, we will solve our problems as the private sector," Cross said.
He noted that five coal-fired power stations and four hydroelectric plants are under construction, with most financing sourced from Chinese investors. The expanding lithium mining sector alone is expected to require 350MW of power by the end of this year, while ferrochrome producers need up to 2,000MW to sustain production.
"The Chinese business community is leading that investment. They are putting their own money on the table because they realise Zesa can no longer carry this load. Zesa told them, ‘If you need power, create it,'" Cross explained.
One success story he highlighted was Blanket Mine, which has leveraged solar power generated through IEUG initiatives to maintain uninterrupted production.
"In 2024, we supplied Blanket Mine with US$17 million worth of privately generated electricity, resulting in increased revenue for the mine. Multiply that impact across 600 gold mines and imagine the national benefit," Cross said.
Cross also revealed that the European Union and the British government are now providing concessional financing for Zimbabwe's solar and energy transition projects, signaling a significant policy shift toward green and decentralized energy solutions.
"It's a clear sign that the world is moving toward decentralized, sustainable energy, and we must move with it," he said.
On the government's side, Zimbabwe Electricity Transmission and Distribution Company (ZETDC) senior manager for electricity trading and system operations, John Diya, defended the controversial requirement for mining sector players to deposit funds into escrow accounts to finance power imports. He explained that these funds are essential for imports, insurance, legacy debts, and critical spares.
"If we released those funds, as some clients demand, we'd lose the ability to raise money for imports. That would collapse the whole system," Diya said.
As Zimbabwe battles a fragile power sector, it is clear that private sector involvement, coupled with international support and government oversight, will play a crucial role in closing the electricity gap and sustaining economic growth.
Source - Zimbabwe Independent
