Electricity Tariff Hike Sparked Growth In Energy Investments, Says ZESA Boss

ZESA Holdings Executive Chairman Sydney Gata said that the decision to adopt electricity tariffs reflecting costs has led to increased investments in the energy sector, which could help address the power crisis Zimbabwe is currently experiencing.

While speaking to delegates at the inaugural Zimbabwe-Zambia (Zim-Zam) Energy Projects Summit on Tuesday in Victoria Falls, Gata said that since the change in December, there has been increased investment in the sector. Said Gata:

Immediately after the tariffs were corrected, we called in industry, mining in particular and told them that now they can also invest in electricity infrastructure.

Gata said miners were advised to stop relying on the government to underwrite the energy risks associated with their operations, and their response has been positive. He added:

As we are talking right now our sector demands approximately 700 megawatts and from the projections from the survey that we did we anticipate that in the next three to five years we will be requiring about 2,000 megawatts, which is above what the country is currently generating.

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Several projects are set to come online next year to address Zimbabwe’s energy shortages, including the refurbishment of coal-fired plants by Jindal Steel and Power, and the development of solar power facilities by Tsingshan Holding Group Co’s Afrochine Smelting and PPC.

These initiatives aim to alleviate the persistent power outages exacerbated by a severe drought, which has drastically reduced hydroelectric generation at the Kariba Dam, the country’s primary energy source.

Currently, the Kariba power station is operating at just 10% of its installed capacity of 1,050 megawatts. As of November 19, total power generation in the country stood at 1,273.5 megawatts, which is just over half of the total demand.

The power shortfall is also being fueled by high demand from the mining sector. Isaac Kwesu, Chief Executive Officer of the Zimbabwe Chamber of Mines, said that the mining industry is experiencing an average annual growth of 9%, driven by key sectors like lithium, coal, iron, and steel.

More: Pindula News