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Introduction 

The provision of reliable and sustainable energy services is undoubtedly the key driver towards socio-economic development for any progressive economy. Thus, there is a positive correlation between economic growth and energy supply. As the country moves towards achieving the Vision 2030 objective of an upper middle income society, the focus is on ensuring universal access to sustainable modern energy sources anchored on massive expansion of generation capacity as well as  urban and rural electrification using both on and off grid energy solutions. 

The Ministry of Energy and Power Development, under the Second Republic, has gone on a drive to implement strategies that achieve these aspirations through maintenance, and rehabilitation of existing infrastructure and construction of new energy projects. 

Furthermore, the Ministry has adopted policies that promote the participation of both individuals and private players in energy production. In Zimbabwe, current demand for power surpasses supply. And, the national power utility depends on regional players to augment its internal electricity generation capacity, while the bulk of the liquid petroleum products are imported except for the locally produced ethanol, which is blended with petrol. Therefore, there is a need for continued investments to ensure that the country becomes energy secure, and become a regional hub for fuel transportation and distribution in the Southern African region.

Current situation analysis

The average country’s maximum electricity demand stands at about 1 750MW against an average internal supply capacity of 1 500MW, including imports from regional utilities. This results in a capacity deficit of up to 250MW, which is met by loadshedding during peak demand periods or demand side management. The power from regional utilities is obtained through Power Purchase Agreements (PPA) between regional players on a firm and non-firm basis. These include HCB of Mozambique and Eskom of South Africa, comprising 100MW firm and up to 400MW non-firm capacity.

The demand for power is set to continue growing due to the anticipated growth in all sectors of the economy as the country moves towards vision 2030 targets.   

Major sources of locally generated electricity include:

Hwange Thermal Power Station, which continues to operate with an average of four units from the six available, with an average capacity of 430MW. Forced outages continue to affect the plant operations. 

Kariba Power Station remains the country’s reliable source of electricity with most of the units available at any given time. Currently, the station has all eight units available transmitting a maximum of 980MW. Output is usually limited due to water conservation measures. Water levels in the 2022/23 rainy season are likely to further negatively impact electricity generation from the station given the low water inflows. 

Independent power producers (IPPs)

Independent power producers are yet to play a more significant role in the supply of electricity with a capacity of more than 100MW having been installed, and feeding into the national grid. The Zimbabwe Zhongxin Electric Energy (ZZEE) is producing 50MW, while Nyangani Renewable Energy is at 30MW, and Solar IPPs 10MW. An additional 13 IPPs are also in operation for their own consumption. Some are on net metering with a capacity of 6MW. These are Econet with four units, Old Mutual, Standards Association of Zimbabwe, Schweppes (two), Tanganda Estates, and Padenga, among others. 

About seven other solar projects are still under construction with an additional 52MW. Also, ZZEE is set to expand its capacity.

Policy development and regulatory frameworks

The following policies were developed by the Ministry in order to give direction and guide its operations:

National Energy Policy (NEP), 2012.

National Renewable Energy Policy (NREP), 2019. The policy has a compendium of incentives for renewable energy and targets to be achieved by 2030.

Bio-fuels Policy of Zimbabwe (BPZ), 2019. Included in the policy are targets for bio-fuel production and use.

The following are policies at an advanced stage of development:

Energy Efficiency Policy

Electric Mobility Policy.

Zero drafts for these two policies are in place and are expected to be launched before the end of 2022. Regarding the E-mobility Policy the Ministry and Ministry of Finance and Economic Development are discussing tax incentives to be awarded. 

Regulations

The following Acts govern the energy sector in Zimbabwe:

Electricity Act, 2002

Rural Electrification Fund Act, 2002

Petroleum Act, 2006

Energy Regulatory Authority Act, 2011.

Other statutory instruments that support the regulations and policies are the Inefficient Lighting Products and Labelling Regulations of 2017, Net Metering Regulations of 2018 and Electricity (Solar Water Heating) Regulations of 2019, among others.

The implementation of the Net Metering Scheme has resulted in the connection of 82 entities, and an additional capacity of 2,4MW was connected to the grid as of May 2022.

Major milestones under the Second Republic

The following are the major milestones achieved by the Second Republic through the Ministry of Energy and Power Development. 

Kariba 7 and 8 Extension Project

In 2018, the Government of Zimbabwe commissioned 300MW (2x150MW each) from the Kariba Extension Project at an estimated cost of US$440 million, including development charges. The project is a peaking power plant, which is meant to provide power during peak demand. The 300MW new capacity has seen Kariba becoming the largest power plant with a combined capacity of 1 050MW. 

Zimbabwe Zhongxin Electric Energy Company (ZZEE)

This is a 50MW thermal power plant, which is private sector-initiated and is located in the Hwange District. The project was commissioned in February 2022, and is generating an average output of 38MW. Through private sector investments, the country is set to expand its generation capacity.

Hwange 7 and 8 Expansion Project

This is a project run as a joint venture between ZPC and Sinohydro with a combined capacity of 600MW (2x300MW each). The project is being financed through a loan facility from China EximBank at an estimated cost of US$1,4 billion. It commenced in 2018, and has reached 89,7 percent completion level. Unit 7 is expected to be commissioned by November 2022 adding 300MW into the national grid. Unit 8 will be commissioned within the first quarter of 2023. Once the two units are operationalised, Zimbabwe’s power supply situation will be significantly improved.

Off-grid solar projects

 

The Ministry, through Rural Electrification Agency (REA), has developed more than 420 mini-grids distributed around the country at Government schools and clinics. REA has finished constructing a 59KW mini-grid solar project at Bemba in Tsholotsho District, Matabeleland North Province.  Plans are underway to replicate this in the rest of the eight rural provinces in the country. 

The private sector has also been developing off-grid solar projects in rural areas. Zoneful Energy Pvt Ltd has installed more than 50 000 solar home systems through a Pay-As-You-Go scheme. Another private company is also piloting the PAYG scheme in Gwanda District, Matabeleland South Province. 

 

Mini-hydropower generation

Nine mini-hydropower plants have been constructed since 2010 in Manicaland Province. Their individual capacities range from 300kW to 15MW giving a total installed capacity of slightly over 31MW. Three mini-hydropower plants namely: Tugwi-Mukosi (15MW), Great Zimbabwe (5MW) and Tsanga A (2,71MW), are under construction as IPPs. Gwayi-Shangani Power Plant (10MW) is in the planning stage.

Electricity access

Zimbabwe has an electricity access rate of about 46 percent, and it is projected that by the end of this year it will be above 50 percent. In line with the Government policy of ensuring that no place is left behind, the Ministry through REA continues to expand rural access to electricity to promote rural development, provision of better education and health services. 

Through this programme, more than 9 900 rural institutions, including primary and secondary schools, rural health centres, Government extension offices, business centres, villages and chiefs’ homesteads, have been connected to the electricity grid, which has transformed livelihoods in many communities. The Rural Electrification Fund (REF) collects most of its funds from the six percent Rural Electrification Levy on electricity bills. 

 Smart cooking using biogas  

The Ministry and REF are also involved in capacity building, training local builders (masons) countrywide on how to construct biogas digesters, with the recent two training sessions having been conducted between May and June 2022 as follows:- 

Mashonaland Central Province: Mbire District with 22 builders trained and a 6m3 digester constructed and another in 

Matebeleland South Province: Matobo District with 20 builders trained and a 13m3 digester constructed. 

Trained builders are expected to privately construct digesters countrywide for a fee, or are contracted by some private companies.

Efficient cookstoves

The Ministry and REF promote efficient sources of energy for the purpose of cooking such as clean cookstoves, solar cookers and biogas-based cookers. In partnership with private players, over 132 000 tsotso stoves have been distributed, mainly in Mashonaland provinces, Manicaland Province and Matabeleland North Province.  The target is to reach 250 000 households by the end of 2022.

Wind energy projects

The Ministry is working with African Development Bank (AFDB) in carrying out wind speed measurements for five sites that were identified by IRENA through satellite studies in 2014. This exercise is expected to run between 2022 and 2025. 

Furthermore, there are two other sites (not included in the five sites above) that were developed by Power China Engineering (Kunming) and Tatanga Energy (Pvt) Ltd. These two sites have shown great potential for wind energy power generation with a capacity factor of greater than 40 percent.

Petroleum sector projects

As alluded to earlier, most of the petroleum products consumed in the country are imported, with the bulk of the fuel being transported through the pipeline. As an import substitution mechanism, Zimbabwe adopted ethanol blending to cut on the fuel import bill, and also reduce carbon emissions. Blending is up to 20 percent depending on availability of ethanol. The bulk of the ethanol comes from Chisumbanje and Triangle Sugar Estates. 

The Government introduced the Direct Fuel Import arrangement in 2019 that allows companies with free funds to procure their own fuel and trade in foreign currency. Under this scheme, the fuel supply situation has stabilised and this has become the major source of fuel for the country.  

Fuel retailing

The country witnessed a tremendous growth in the number of retail markets, which saw a number of service stations being constructed. This improved convenience to motorists, and also increased competitiveness in price and services by the various players.    

Mabvuku ethanol storage facility

This project involves the construction of 2×3 000m3 ethanol storage facilities in Mabvuku, Harare. The project is being done by NOIC (National Oil Infrastructure Company of Zimbabwe). Commissioning of the project is expected by September 2022. Its main objective is to ensure maintenance of consistent blending ratio through the provision of adequate ethanol in the country in all seasons. It will also reduce the import bill of petroleum products through import substitution.   

Liquefied Petroleum Gas (LPG)

 

There has been an upsurge in the use of LPG as a clean source of cooking energy as compared to firewood and paraffin in recent years. LPG use has increased 10-fold between 2012 and 2021 (six million tonnes in 2012 and 56 million tonnes in 2021). This shows an increase in access to clean energy for urban, semi-urban and rural households.

In order to ensure uninterrupted supply of LPG, the Ministry, through NOIC, started the construction of an LPG storage and handling facility in Ruwa with a holding capacity of 2 000 tonnes. The project was initiated to ensure security of supply of LPG and to stabilise prices on the market. This project is critical as it will assist in cutting down trees for firewood, reduce over-reliance on the grid electricity, and is a clean energy source. 

NOIC will provide additional storage that will be adequate to supply the local market requirements and create buffer stocks to avoid intermittent periods of shortages. Phase 1 of the LPG project is expected to be completed in March 2023. To date, civil works have been completed. The company awaits delivery of the electrical equipment that is being imported from India to progress with the project. 

Pipeline upgrade project

The Government, through NOIC’s subsidiary, PetroZim Line (Pvt) Ltd (PZL), has also embarked on a pipeline capacity upgrade. Currently, the pipeline has a capacity of 2,19 billion litres per annum. The project is being implemented in phases with the first phase targeting to achieve a capacity of three billion litres per annum, and subsequently five billion litres per annum. Through this project, Zimbabwe will have excess pumping capacity to be the hub of fuel transportation and distribution in the Southern African region.

Future plans

As demand increases based on the current growth driven by the mining sector, the Ministry, together with the private sector, will continue developing ongoing new capacity projects, including hydro, solar, wind, new clean coal and gas projects, initially targeting Mozambican gas. These will include grid reinforcement and rehabilitation projects. Incentives for renewables will be enhanced with the Government Implementation Agreement, which will deal with the currency risk. 

The Government will deliberately move away from unsolicited bids for energy projects, and adopt a competitive bidding system, particularly for IPPs in the renewable energy sector. This is at an advanced stage as the GIA and standard PPA get piloted. Also, the procurement system is being finalised. 

In addition, the Government will increase local assembly and innovation in the energy sector, and develop a green hydrogen policy and strategy.   

The Government will also adopt the Energy Efficiency Policy, and the industry to adopt Minimum Energy Performance Standards (MEPS), mandatory energy audits and other measures in order to improve the uptake of energy efficiency. 

Target 4th quarter of 2022

Develop a clean cooking stove strategy and work with local developers and companies to produce efficient biomass stoves locally. The Ministry is working with local companies and champions on this 

Proceed with renewable resource feasibility studies i.e., wind resource and geothermal as a way of accelerating uptake through auctions for identified sites.

Proceed with the current work with development partners relating to: 

Development of an integrated resource plan building on the current REMP, National network master plan and least cost solar deployment plan, which are being finalised

energy efficiency programme design for public sector 

protection scheme coordination on SAPP interconnection 

review tariff methodology and regulatory accounting framework 

Lease cost Assessment of Service Quality Levels and Low-cost Technology Schemes for Electrification are ongoing

Draft National Electrification Analysis Report, Consultation and Dissemination and the Final National Electrification Analysis Report.

In addition, the Agency also managed to provide mobile solar units to 439 institutions. The Rural Electrification Fund has also developed the Rural Energy Master Plan (REMP), which is set to accelerate the rural electrification programme through the use of cost effective technologies.   

Clean cooking

Biogas technology

The Ministry and REF are promoting biogas technology through two programmes; the Institutional programme and the Domestic programme. 

Institutional Biogas Programme: More than 100 biogas digesters of sizes ranging from 25m3 to 200m3 have been constructed at institutions, such as boarding schools, prisons, hospitals and farms, and the gas is used for cooking.

Domestic Biogas Programme: More than 500 biogas digesters of sizes ranging from 6m3 to 20m3 have been constructed at rural homesteads to provide a clean and sustainable cooking alternative for women and the girl child.

 

Summary of key interventions

Short term

   Maintenance and rehabilitation of existing infrastructure commissioning of ongoing power generation and grid infrastructure projects, both public and IPPs increase in net-metering customers solar off-grid and mini-grid systems

2.      Energy efficient and demand side management:

Continued training of efficient management professionals and certified auditors implementation of solar water heating and  launch of energy efficiency policy solar water heating regulations and production awareness campaigns on energy efficiency

Use of gas, instead of electricity for cooking.

 3.      Increase in imports:

additional input from SAPP members (ESKOM, HCB and EDM) additional imports from ZESCO allow large exporting and intensive user customers to import from directly from the Region Renewable Energy Policy implementation Standard PPA and GSA.

 

Medium to long term

Explore the Zambezi River basing on hydro-potential (10 gorges projects):

Batoka 2 400MW

Mphanda Nkuwa

other IPP Projects

implementation of natural gas and coal bed methane projects

development and implementation of green hydro projects

increased capacity from IPPCs

Green hydrogen.

Coordinated and edited by The Herald Senior Writer, Elliot Ziwira.