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ZERA issued 20 electricity licences in 2024

by STaff reporter
4 hrs ago | Views
The Zimbabwe Energy Regulatory Authority (ZERA) has issued 20 electricity licences so far in 2024, with 17 designated for power generation projects boasting a combined installed capacity of 786.08 megawatts (MW). The remaining three licences are for the retail supply of electricity, the regulator has confirmed.

The milestone underscores ZERA's ongoing efforts to diversify and strengthen Zimbabwe's energy sector, particularly at a time when the national power utility, Zimbabwe Power Company (ZPC), continues to battle challenges linked to aging infrastructure and persistent technical and non-technical losses.

In its 2024 annual report, ZERA highlighted a surge in interest from companies investing in solar photovoltaic (PV) systems, either for own use or captive supply agreements, as part of broader strategies to mitigate risks tied to Zimbabwe's unreliable electricity supply.

"A majority of applications considered by ZERA were for solar systems installed by companies for own consumption, with a significant number coming from captive power producers," said ZERA board chairperson Dr David Madzikanda.

ZERA reiterated the critical role of Independent Power Producers (IPPs) in augmenting Zimbabwe's fragile electricity supply network.

"As a regulating entity, the goal is to bring on board as many IPPs in the sector and ensure these take off and feed into the grid or supply viable off-takers," said ZERA.

Of the 17 generation licences, four projects will supply electricity to captive customers, six projects will generate power solely for their own consumption, and seven projects are expected to feed into the national grid.

Solar remains the dominant choice, with 16 out of the 17 projects approved being solar PV plants. Only one project involves a coal-fired thermal power station.

"ZERA continues to facilitate the growth of this new category of power producers, in order to bring stability to the electricity sub-sector," Dr Madzikanda added.

The report further noted that the approved generation projects have different offtake arrangements, reflecting a maturing and more diversified approach to Zimbabwe's power needs.

Zimbabwe's energy security concerns have intensified in recent years, with regular power cuts crippling industries and households. Authorities see the integration of renewable energy solutions and private-sector participation as vital steps toward building a more reliable and sustainable power system.

Source - The Chronicle
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