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Oliver Kazunga Acting Business Editor
ENERGY producers need to consider the provision of power to the rural communities in order to tap into the $67 million market, an expert has said.
An official from SNV, Chandi Mutuki Makuyana, told delegates at the Regional Energy Regulators Association (Rera) of Southern Africa congress in Victoria Falls last week that their recent survey had established that through income-generating projects, rural communities were able to pay for electricity.
“From a non-governmental organisation’s perspective, our expectations are that if we give people in the rural areas room to participate, they’ll realise the benefits of energy.
“Of late energy provision in the rural areas has been minimal because power producers have the notion that people in the rural areas can’t pay.
“According to a survey that we recently carried out as SNV, there’s a $67 million market in Zimbabwe’s rural communities.”
The rural population has the potential to contribute to the economy through different economic development projects such as poultry, irrigation and livestock production.
As part of efforts to improve electricity supply in the country’s communal areas, the government through an Act of Parliament established the Rural Electrification Agency (REA) in 2002, which to date has seen more than 7,000 rural institutions that include schools, clinics, irrigation schemes, and chiefs homesteads, among others electrified.
Makuyana called on regulatory authorities to deliberately create investment space for the rural population.
Recently, the Zimbabwe Energy Regulatory Authority licensed about 15 Independent Power Producers (IPPs), a development likely to alleviate electricity challenges facing the country as power generated would be fed into the national grid.
The projects are at different stages of development.
Zimbabwe has a national demand of 2,200 megawatts but is presently producing about 1,300MW.
Online Reporter