Govt to invest over US$1bn in power projects
CLOUDINE MATOLA
The government plans to invest over US$1bn in pipeline power generation projects set for completion by 2030, funded through debt financing and public-private partnerships, Business Times can report.
This initiative seeks to address persistent power outages that have negatively impacted businesses and livelihoods for over a decade.
According to the National Development Strategy 2 (NDS2), key projects include the rehabilitation of Hwange units 1-6.
“The Hwange 1–6 rehabilitation project will be implemented through a public private partnership at an estimated cost of US$455m, with completion expected by 2028. The project will feed 700 MW to the national grid, with an extended operational life of over 20 years.”
Another major project is the “installation of 1 800 MW-hours battery energy storage solution with capacity to provide 600 MW dependable capacity at a cost of US$400m. The project will be funded through debt financing and is scheduled for completion by 2027.”
The strategy also outlines plans for new hydro power projects. These include the “development of Gwayi-Shangani Hydro Power Project that will generate 10 MW at an estimated cost of US$25m, with completion targeted for 2028. The project will be implemented through a public private partnership arrangement to leverage private sector financing, technology and operational efficiencies.” Furthermore, the government plans the “implementation of the 15 MW Tugwi-Mukosi Hydro Power Project at an estimated cost of US$32m with completion targeted for 2027. The project will be financed through public private partnership arrangements to harness private sector participation in renewable energy development.”
Additional critical work includes the “repair of Unit 4 at Kariba South Power Station at an estimated cost of US$4.4m, fully funded by the scus. The repair works are scheduled for completion by 2027. This intervention is aimed at restoring 125 MW of generation capacity to the national grid, thereby enhancing system reliability and stabilising power supply.” The NDS2 also confirms the “implementation of the 90 MW Mutorashanga solar project at an estimated cost of US$86m.”
With these projects, the government aims to dramatically increase national power generation. As stated in the NDS2: “During NDS 2, national electricity generation capacity is targeted to increase from the current 2 950 MW to 6 000 MW, driven by both Government and private sector led projects. To realise this target, a portfolio of short, medium and long-term electricity generation projects will be implemented across the country.”
Furthermore, the strategy emphasizes a transition to sustainable energy: “During NDS 2, priority will be placed on achieving universal access to reliable, affordable, sustainable and clean energy for all Zimbabweans by 2030. This will ensure the country transitions towards a resilient, inclusive and low-carbon energy future in line with the National Energy Compact.”
In addition, the government will facilitate greater private sector participation in power generation through Independent Power Producers (IPPs) and public-private partnerships.
