Zimbabwe power users raise US$250 million for floating solar plant on Kariba Dam

Zimbabwe's industrial power users have secured $250 million from the African Export-Import Bank to build floating solar panels at the world's largest man-made lake.

The Intensive Energy User Group, made up of mining companies including a former local unit of Rio Tinto and Mimosa, plan a 250-megawatt plant at the Kariba Dam to be implemented in 18 months, according to a copy of its presentation seen by Bloomberg. That can be expanded to 1 gigawatt of solar capacity.

The group received "oversubscribed" interest for financing, Edward Cross, the IEUG chairman, said in a message.

The key step toward realizing the floating solar project comes at a time when the drought-stricken nation is facing record power cuts. Due to low water intake, the Kariba Dam is currently generating an average of 125 megawatts, just around 11% of its installed capacity. Power cuts can last an average of 18 hours a day.

"This transformative project will will integrate solar energy with existing hydropower infrastructure boosting Zimbabwe's renewable energy capacity ensuring reliable power," Afreximbank said in a post on X.

IEUG holds a retail supply license and a 20-year transmission agreement to connect to the national grid.