Energy company Grid Africa has reached an agreement with a group of miners in Zimbabwe to build 200 megawatts (MW) of solar power for their operations, costing around US$180 million.
This deal comes as miners struggle to find reliable energy sources for their operations. ZESA Holdings, the country’s power utility, has been unable to meet the growing energy demand, and power blackouts have caused mining companies to lose an estimated US$500 million in revenue.
In an interview with the <a href="https://www.theindependent.co.zw/business-digest/article/200035304/grid-africa-zim-mines-strike-200mw-solar-deal">Zimbabwe Independent</a> during the Zimbabwe-Zambia Energy Projects Summit in Victoria Falls this week, Grid Africa CEO Norman Moyo shared details of the agreement. Said Moyo:
<blockquote>
Today, in Zimbabwe, we are focusing on developing 200MW for the mines.
The mines need 200MW worth of power, and we have now concluded a deal to supply that power to the mines.
A 200MW (project) requires anything up to US$180 million. That is the level of investment you need to put in.
We have got a number of strategic partners — our banking partners who are coming through. We have equity investors and development agencies coming through to support us in developing these mines.
We have already commenced. You will start to see, over the next three years, all that 200MW (project) beginning to come online.
However, we do it in (phases). For us, we are very happy to do a 20MW mine and we move on to the next mine.
Those are smaller projects, quick (and) easy to execute, but they add up very quickly. So that is how we are going to be rolling out that.
We are not going to build one big plant. We don’t think it is the most efficient (way to do it).
</blockquote>
At the summit, Grid Africa signed a major deal with Africa GreenCo Group to generate 100MW of electricity for mines in Zimbabwe.
According to the agreement, Grid Africa will produce the power, and Africa GreenCo Group will manage its delivery to the mines.
Lion Mashiri, director of Africa GreenCo Zimbabwe, stated that the 100MW project will cost about US$70 million. Said Mashiri:
<blockquote>
This project will be on land in the Midlands Province around Kwekwe. It will be done at the farm surrounding ZIMASCO.
</blockquote>
Zimbabwe needs between 1,800MW and 2,200MW of electricity, depending on the season. However, as of Friday, November 22, the Zimbabwe Power Company (ZPC) reported that power generation was much lower, with Hwange producing 1,084MW, Kariba 124.5MW, and Independent Power Producers (IPPs) contributing 50MW, totalling 1,258.5MW.
The government has set ambitious electricity goals for 2030, aiming to generate 2,100MW from renewable sources by that year.
As part of its Renewable Energy Policy, the country also plans to achieve 1,100MW by 2025, reducing reliance on traditional hydroelectric power, which has been impacted by irregular rainfall and climate change.
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Zimbabwean miners and Grid Africa struck a deal to build 200MW solar power, costing $180 million. Miners need reliable energy as power cuts have caused $500 million in losses. Grid Africa's CEO, Norman Moyo, shared details of the deal at a summit. Another deal for 100MW of power was signed with Africa GreenCo Group. Zimbabwe has electricity shortages, with plans to generate more power from renewables by 2030. The country aims to reduce reliance on hydroelectric power due to climate change.

Zimbabwean Miners, Grid Africa Strike 200MW Solar Power Deal

Potential investors in Zimbabwe and Zambia’s energy sectors from the West are seeking predictability, particularly in legislation, the courts, and monetary policy.
This was said by Jobst von Kirchmann, the European Union Ambassador to Zimbabwe, during his address at the inaugural Zimbabwe-Zambia Energy Projects Summit held in Victoria Falls this week. Said Kirchmann:
<blockquote>
Zimbabwe is now running a monetary policy which is a multicurrency policy, but then if someone goes out and says, ‘We should abandon the dollar; we should go back to mono-currency,’ that’s a killer for investment.
</blockquote>
President Emmerson Mnangagwa recently suggested that the Zimbabwean dollar (ZiG) become the sole currency by 2026, phasing out the use of the US dollar, which has been in circulation alongside other currencies since 2009.
John Humphrey, the British Trade Commissioner for Africa, also emphasized the need for stability in the country’s currency policy. He said:
<blockquote>
When we are in the renewable sector, it’s not just about five or 10 years. Actually, you are looking at a much longer period.
So, in order to be able to make those sorts of investments, you really have to feel like you are operating in a predictable and stable environment.
Money is like water. It goes where it is easy, and if you put something in its way, it just flows somewhere else.
</blockquote>
Zimbabwe and Zambia held a summit this week in Victoria Falls to explore ways to attract investment for energy projects and development.
The discussions came amid the worst recorded drought in the region, which is depleting the Kariba Dam reservoir and leading to prolonged power outages.
Officials from both countries acknowledged that their heavy reliance on hydropower makes them vulnerable to such extended electricity shortages, with recent blackouts lasting up to 20 hours.
They say they want to increase investment in wind and solar energy generation.
Vice President Constantino Chiwenga said Zimbabwe and Zambia are well-positioned to benefit from solar and wind power. Said Chiwenga:
<blockquote>
In particular, the potential for solar energy is highly promising. Both Zimbabwe and Zambia enjoy abundant sunlight throughout the year. This is the only asset on this Earth we do not pay for. So, let’s use it.
</blockquote>
Zimbabwe and Zambia have begun exploring floating solar projects on Lake Kariba, following a severe El Nino-induced drought that has reduced the hydroelectric dam’s water levels to just 2%. The drought has led to prolonged power outages in both countries.
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Western investors from Europe want stable laws and money policies before investing in energy projects in Zimbabwe and Zambia. They are worried about changes in currency policy and want more predictability for their investments. Both countries are facing severe power shortages due to a drought, so they are exploring renewable energy options like solar and wind power. Officials say they have a lot of sunlight which can help generate energy. The countries are working together to attract more investment for their energy projects and to address the current power crisis.

Western Investors Want Stable Legal And Monetary Policies; EU Tells ZimZam Energy Summit

Residents of Bulawayo’s Ward 2 are struggling with severe electricity cuts that have disrupted their daily routines and forced significant adjustments, according to a recent survey conducted by local councillor Rendani Moyo.
In an interview with <a href="https://cite.org.zw/residents-struggle-to-cope-with-prolonged-electricity-cuts/">CITE</a>, Councillor Moyo revealed that areas such as North Trenance, Richmond, Aisleby, Good Hope Farms, and Northlynne have been the hardest hit in the ward. He said:
<blockquote>
Moderately affected areas include Queens Park West, Tegela and North End, while others have reported either minimal disruption or declined to respond.
</blockquote>
Moyo said he was motivated to conduct the survey following the persistent outages, which have left residents in a “state of despair.” Said the councillor:
<blockquote>
Residents are calling for accountability and meaningful solutions from authorities. For now, they have continued to navigate sleepless nights and troublesome days with no lights, no TV and no fridge in this heat.
The worst-affected residents have had to adjust their sleep patterns, staying up late to cook, iron clothes and charge devices. This has left many lethargic during the day due to lack of adequate sleep.
It is an unfortunate situation that could lead to a serious degradation of our environment as people resort to chopping down trees for firewood.
</blockquote>
Moyo said there was a need for the Zimbabwe Electricity Supply Authority (ZESA) to provide a clear and fair load-shedding schedule. He said:
<blockquote>
What we need is an interactive platform where ZESA can have an honest conversation with residents about the state of power generation.
A transparent and balanced load-shedding schedule would go a long way in easing tensions.
</blockquote>
To cope with the power outages, many residents have resorted to alternative energy sources. Some are using firewood for cooking, rechargeable torches for lighting, and solar power where possible.
However, these solutions are not sustainable for everyone, as not all residents can afford the upfront costs of solar panels or gas.
Jason Huntley, a resident of the affected areas, told CITE that poor planning and corruption were to blame for the ongoing electricity crisis. He said:
<blockquote>
Our electricity crisis is 99 per cent man-made. Even if Kariba Dam was overflowing, we cannot rely on outdated equipment from 1959 designed for a population of 3.6 million to serve today’s 16 million.
There has been zero development in the energy sector, and those awarded tenders for minor solutions squander the funds.
There is not a single functional, pro-people, and pro-development ministry. All they care about are lavish perks while the rest of us suffer. Something has got to give. We are tired.
</blockquote>
Zimbabwe depends on the Kariba South Hydro Power Station and Hwange Thermal Power Station to meet its electricity demands.
However, Kariba is currently generating just a tenth of its installed capacity due to low water levels in the Kariba Dam, while frequent breakdowns at Hwange have significantly disrupted power generation.
On Friday, November 22, the Zimbabwe Power Company (ZPC), a subsidiary of ZESA responsible for power generation, reported that Hwange was producing 1,084 MW, Kariba 124.5 MW, and Independent Power Producers (IPPs) 50 MW, bringing the total generation to 1,258.5 MW.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwean urban dwellers in Bulawayo are facing long electricity cuts that disrupt their daily lives. Many areas are affected, and residents are struggling without lights, TV, or fridge. The Zimbabwe Electricity Supply Authority (ZESA) needs to provide a clear schedule for power cuts. Residents are using alternative energy sources like firewood and solar power. Some blame poor planning and corruption for the electricity crisis. The main power stations are producing less electricity, contributing to the problem. Overall, residents are calling for accountability and solutions to the ongoing electricity cuts.

Zimbabwe's Urban Dwellers Struggle To Cope With Prolonged Electricity Cuts

Business executives and captains of industry in Zimbabwe are facing a challenging 2024. The country’s persistent electricity shortages, coupled with rising costs, have raised concerns.
As the Zambezi River Authority (ZRA) reduces water allocation to ZESA and ZESCO for power generation at Kariba Dam due to the water crisis, the situation is expected to worsen.
Hwange Power Station is now the primary source of power, but technical glitches occasionally result in total outages.
To mitigate the impact, some companies may resort to staff rationalisation, reduced production, and price adjustments.
Speaking to <a href="https://www.businessweekly.co.zw/alarm-over-potential-rise-in-energy-costs/">Business Weekly</a>, Confederation of Zimbabwe Industries (CZI) president, Kurai Matsheza, lamented that electricity costs have constantly been increasing while at the same time supply remains depressed. He said:
<blockquote>
Some companies will switch to more expensive alternative sources of power, so again, it is an increase in cost.
When that happens, combined with the real cost of electricity that has aggressively gone up, it just makes the cost of producing more expensive, and those costs will be transferred to the goods and services that are being sold.
It is not good for us as producers but also not good for consumers; this will just make the cost go up.
</blockquote>
Victor Bhoroma, an economist, said without addressing power generation, the Zimbabwean economy will not achieve consistent growth. He said:
<blockquote>
Businesses will have to invest more in alternative power, which adds another layer to the cost of doing business and increases consumer prices.
A lot of productive time will be lost, which entails operating below optimum capacity and retrenching labour.
</blockquote>
Another economist, Eddie Cross, said the situation is very serious and will affect businesses across the nation. Said Cross:
<blockquote>
Many firms are running generators, and others are installing solar power panels and batteries.
But where people cannot respond, they will have to cut costs and raise prices.
</blockquote>
To mitigate the impact of shortages, the government aims to commission small hydro and solar power stations.
These initiatives are expected to add approximately 90 MW in 2024 through Independent Power Producers (IPPs).
By 2025, an additional 296 MW is anticipated to come online, primarily from solar, hydro, and coal projects.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Industry Leaders Brace For Soaring Costs Amid Power Shortages

The Zimbabwe Power Company (ZPC)’s Harare Thermal Power Plant is now producing electricity after undergoing routine maintenance, while the Hwange Thermal Power Plant has increased generation from less than 80MW last week to more than 390MW.
Harare power station is an approximately 90-megawatt (MW) coal-fired power station located along Coventry Road in Harare Metropolitan Province.
According to generation statistics released by ZPC, on Tuesday, 7 March 2023, Harare was generating 10MW, Hwange 391MW, and Kariba South Bank Power Station 292MW giving a total of 693MW, up from 260MW last Friday.
Meanwhile, the Kariba Dam water level is rising gradually. According to Zimbabwe River Authority (ZRA), as of 06 March 2023, Lake Kariba had 15.15% of usable storage meant for power generation.
However, Zimbabwe’s peak electricity demand in Summer is 1 800MW. The country is currently importing a reported 500MW from South Africa, Zambia, and Mozambique.
This means that Zimbabwe currently has a deficit of more than 600MW and this results in unscheduled prolonged power outages euphemistically referred to as load shedding.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Harare Power Station Now Generating Electricity

The <a href="https://www.pindula.co.zw/Zimbabwe_Energy_Regulatory_Authority">Zimbabwe Energy Regulatory Authority (ZERA)</a> has urged consumers to be efficient with electricity and adopt renewable energy sources.
A senior ZERA official who declined to be named told the <a href="https://www.chronicle.co.zw/zera-urges-use-of-renewable-energy-sources/">Chronicle</a> that efficient use of electricity was critical at a time when the country is battling power outages amid reduced generation capacity from local plants. Said the official:
<blockquote>
People should try to be efficient with electricity in order to help ease the power outages countrywide. We are here to educate you on how to use electricity efficiently and we are encouraging you to use the right lighting bulbs in your homes.
We are saying no to using incandescent lights or bulbs as they do not save electricity. We encourage you to buy light-emitting diodes (LED) and compact fluorescent lamps (CFL) as they are more energy-saving than incandescent lights.
</blockquote>
The ZERA official also urged households to use solar to generate their own electricity at home as it is also a good alternative source of energy, which is environmentally friendly.
Mr Hugh Mlauzi, ZERA Regional technical inspector, said the use of Liquid Petroleum Gas (LPG) as an alternative to electricity was commendable. He said:
<blockquote>
People should try to save electricity by using Liquid Petroleum Gas, which remains one of the best alternative sources of energy being used in urban and rural areas. That is why we are here to educate you on how to use gas at your homes.
</blockquote>
Zimbabwe has been facing a power crisis for several years, with frequent power outages and load shedding being experienced in different parts of the country.
The crisis is attributed to successive droughts, old and inadequate infrastructure, lack of investment in alternative power sources, and financial challenges. 
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