10 power projects get govt backing
ED pushes for accelerated renewable energy adoption
THE government has guaranteed the bankability of 10 independent power producer (IPP) projects with a potential to generate a combined 271 megawatts (MW) in renewable energy. This was revealed yesterday at the just-ended fifth edition of the International Renewable Energy Conference and Expo in Victoria Falls ,where the Finance, Economic Development, and Investment Promotion and Energy and Power Development ministries handed over the letters of guarantee to the 10 IPPs.
PRESIDENT Emmerson Mnangagwa yesterday said the Accelerated Partnership for Renewables in Africa (APRA) will help double Zimbabwe’s energy mix at a time the government is moving to fine tune its policies to promote the adoption of green energy.
APRA is an initiative founded at the African Climate Summit held in September 2023 by Kenya, Ethiopia, Namibia, Rwanda, Sierra Leone, and Zimbabwe, with support from Denmark, Germany, the United Arab Emirates, and International Renewable Energy Agency to accelerate energy transitions in respective countries.
In a speech read on his behalf by Vice-President Constantino Chiwenga at the just-ended fifth edition of the International Renewable Energy Conference and Expo in Victoria Falls, Mnangagwa said challenges posed by climate change demanded decisive action by governments.
“Zimbabwe, being one of the founding members of the Accelerated Partnership for Renewables in Africa, is collaborating and partnering with other African countries in the implementation of sustainable energy programmes and projects,” he said.
“This is set to double our national energy- mix, while contributing to regional energy security and investment opportunities that leaves no one and no place behind.
“The multi-pronged challenges of climate change coupled with the urgent need to industrialise our country demand you to be bold and decisive in the type of interventions and investments you make to close the energy gap.”
At the well-attended conference, renewable energy around electric vehicles, solar, wind and hydrogen were discussed as possible ways the country could move towards green energy.
Mnangagwa said it was important that the country was not left behind as the rest of the world was moving to adopt greener energy.
“Conferences such as this and other platforms should critically examine the ongoing transition by incorporating the associated technological and socioeconomic dimensions,” he said.
“Aspects related to the human capital development needs, in terms of skills and competencies that must be nurtured, should be given due attention.
“As we march towards realising energy self-sufficiency, the second republic is increasing the share of renewables as we migrate from non-renewable sources.
“Going into the future, we shall continue to prioritise the maintenance and rehabilitation of existing energy infrastructure over and above new green-field energy projects.”
Mnangagwa said the upgrading of the country’s energy generation, transmission and distribution networks as well as other infrastructure was also being scaled up.
“In view of the critical relationship between energy, and sustainable socio-economic development, I call upon the sector and in particular, the Ministry of Energy and Power Development, to enhance energy conservation and efficiency awareness,” he added.
“In addition, the provision of sound technical and professional services to investors and all stakeholders in the sector, must be guided by the ease of doing business work ethic advanced by my administration.
“As ministries, departments and agencies in the energy sector, you are challenged to facilitate and not to frustrate partners and investors.”
He urged the energy sector to shift the discourse so that the country charted greener development pathways that did not compromise environmental biodiversity and the country’s pressing need to modernise and industrialise Africa.
“On its part, my government will continue to finetune policies and heighten the implementation of flagship projects to manage the uncertainties associated with climate change,” Mnangagwa added.
“The adage goes; ‘Alone one can go fast; but together, we can go far’, hence, our unity of purpose and determination to build greater climate change resilience in the energy sector should result in increased collaboration among stakeholders and investors.
“Let us work concertedly to achieve net zero targets as outlined in the Nationally Determined Contributions.”
The oversubscribed conference was organised by The Standard in conjunction with the Energy and Power Development ministry.
Mutorashanga (Indo Africa) Solar, which will produce 10 megawatts (MW) of electricty, Guruve Solar Energy Project (5,5MW), DeGreen Rhino Solar (50MW), Equinox Solar (10MW), Murombedzi Solar (10,5MW), Great Zimbabwe Mini Hydro (5MW), Par Value Energy (50MW), Acacia Energy (50MW), Energywise Vungu Solar (30MW) and AF Power (50MW) were the recipients of the letters of guarantee.
“The selected companies will benefit from a capped tariff of US$0,09 kWh for solar energy, regardless of the capacity, due to the drop in the solar technology prices in late 2023,” the two ministries said in a joint statement.
“Further, government is willing to support all the local IPPs through a back-to-back liquidity support structure (on-shore account structure), whereby the IPPs can have an arrangement with relevant exporting private off takers to offtake power, which will enable seamless servicing of their obligations.”
The ministries said the coming on board of the IPPs would go a long way in alleviating power shortages in the country as well as promoting import substitution.
“This year we celebrate the completion and commissioning of several independent power producer projects which we will invite you, Your Excellency, to come and officially commission soon,” Energy and Power Development minister Edgar Moyo told the conference.
“These include a 5MW solar photovoltaic (PV) power plant near the Victoria Falls Airport, an additional 23MW solar PV plant in Mashonaland West province, another 35MW solar PV plant in Mashonaland West again and a 5MW mini-hydro power station in Masvingo Province.”
He said there was another 1MW mini-hydro power plant which was also technically commissioned at the end of 2023.
“This is just a short list of the numerous projects happening around the country,” Moyo added.
“This year’s Conference is running under the theme Building a Sustainable Energy Future and is a proactive theme unlike the previous year’s theme which seemed to just focus on possibilities rather than the action on the possibilities.
“Our theme this year has an operative word which is ‘Build!’ Ladies and gentlemen, it is our aspiration to continue to be driven by this operative word in our industry as we continue to build tangible energy assets.
“These assets can bring up our internal generation capacity to at least match the daily power demand of Zimbabwe.”
He said with this trajectory, power cuts could soon be relegated to the “annals of history”.
In December 2022, the ministries of Finance, Economic Development and Investment Promotions and Energy and Power Development agreed to expedite investments in the renewable energy sectors.
The government has embarked on several strategies to arrest the growing power deficit in the country, which ranges between 500MW to 1 000MW.
According to the Southern African Power Pool, Zimbabwe has an installed capacity to produce 2 412MW, but only has an operating capacity of 1 400MW, against a peak demand of 1 900MW.