COMMENT: Stable power in winter improves productivity

For years, the arrival of winter in the country signalled one thing for businesses and households alike: prolonged electricity shortages.

Manufacturers adjusted production schedules, miners relied more heavily on expensive diesel generators, and households braced for hours of darkness.
However, this year has been refreshingly different.

For the first time in almost two decades, we have navigated the winter peak demand period without widespread load-shedding. That achievement reflects improvements in power generation, better maintenance planning and prudent management of available resources.

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) attributes the improved supply largely to stronger performance at Hwange and Kariba power stations. Hwange and Kariba are together producing about 1,600MW, supplemented by electricity imports, independent power producers, rooftop solar generation and captive power plants established by private companies.

The return of Hwange Unit 6 following statutory maintenance, the reliable performance of the newer Units 7 and 8, improved water allocations for Kariba and enhanced maintenance programmes demonstrate that investment in existing infrastructure can produce tangible results.

The benefits of reliable electricity extend well beyond keeping the lights on. Stable power allows factories to increase production, miners to operate efficiently and businesses to plan with greater confidence. It reduces operating costs associated with backup generators, improves productivity and enhances Zimbabwe’s attractiveness as an investment destination.

Yet this welcome success should not breed complacency. Rather, it should reinforce the urgency of expanding generation capacity.

Electricity demand is rising steadily. According to ZETDC, demand has already increased from 1,841MW in August last year to more than 1,900MW last month. More importantly, Government has already received applications for new electricity connections and expansion projects requiring an additional 2,500MW.

The figures provide the clearest indication that our economy is beginning to regain momentum. Mining companies are expanding production, investing in mineral beneficiation and developing new projects that require significantly more electricity.

Manufacturing capacity utilisation is improving as firms respond to stronger demand and renewed investment. At the same time, new residential developments and urban expansion continue to increase domestic electricity consumption.

These developments should be welcomed because they signal economic activity. However, they also underline why today’s comfortable electricity position could quickly become tomorrow’s constraint if investment fails to keep pace.

Government’s plan to double installed generation capacity from approximately 2,950MW to 6,000MW over the next four years is therefore both timely and necessary. Achieving this target will require substantial public and private investment across conventional and renewable energy projects.

The recently introduced Electricity (Provision of Backbone Infrastructure) Regulations represent an important policy shift. Requiring property developers to finance distribution infrastructure while allowing private companies to develop electricity networks in previously unserved areas should ease pressure on public finances and accelerate electrification.

If implemented consistently and transparently, the reforms could unlock significant private sector participation.

Equally important is continued support for independent power producers. Local mining houses have already demonstrated that captive solar projects can supplement grid supplies while improving energy security.

Encouraging similar investments across industry will help diversify the country’s energy mix and reduce dependence on any single generation source.
Every new mine, factory, industrial park and housing development depends on adequate power.

The country’s industrialisation ambitions, value-addition agenda and Vision 2030 will ultimately be measured not only by mineral resources or investment commitments, but also by the availability of sufficient, affordable and reliable electricity.

Zimbabwe has shown this winter that uninterrupted power supply is achievable. The challenge now is to build enough new capacity to ensure tomorrow’s growing economy never has to choose between development and electricity.

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