Online Reporter
Rutendo Nyeve, Victoria Falls Reporter
THE Government has licensed about eight Independent Power Producers (IPPs) to develop projects that will generate at least 1 000 megawatts (MW) using clean coal technologies before 2030 in a move set to boost the national power grid and attract private investment.
Deputy Minister of Energy and Power Development, Yeukai Simbanegavi, revealed this at the 2025 Zimbabwe-Zambia Energy Projects Summit in Livingstone, Zambia, on Wednesday.
The summit, which is being held under the theme: “Mines and Energy: Fast-Tracking Private Sector Projects”, serves as a platform to showcase the country’s efforts in accelerating energy reforms and commitment to a private sector-driven power market.
Alongside the clean coal projects, Deputy Minister Simbanegavi said several solar projects have also been licensed as Zimbabwe aggressively pursues its renewable energy target of adding 2 100MW to the national grid.
The dual approach underscores a pragmatic energy mix aimed at achieving both base-load power stability and sustainable growth.
Deputy Minister Simbanegavi said these developments are a direct result of deliberate reforms and a suite of incentives introduced by the Government to promote private sector participation in the energy sector.
“I believe that the above-cited developments are a result of reforms in the sector and the multiple incentives that the Government of Zimbabwe introduced to promote private sector participation in the sector,” she said.
A key pillar of these reforms is the deliberate effort to reduce bureaucratic and financial hurdles for investors.
The Deputy Minister highlighted a recent downward revision of licensing and permit fees, designed to simplify project development and significantly improve the ease of doing business.
“The latest of such reforms is the downward revision of licensing and permit fees, to simplify project development and improve the ease of doing business in the energy sector,” she said.
Elaborating on this, she said the Zimbabwe Energy Regulatory Authority (Zera) has substantially reduced license application fees for various energy project capacities.
In a major incentive for smaller-scale renewable projects, the Deputy Minister revealed that solar PV projects, which are below 10MW, are licensed by Zera but are exempt from paying licence fees.
Beyond simplified licensing, the Government has rolled out a comprehensive package of incentives to attract capital.
These include duty rebates on imports of solar equipment and tax holidays for projects with a capital cost of US$500 000 and above.
In order to mitigate perceived investment risks, the Government is now issuing Government Project Support Agreements (GPSA) to qualifying projects.
“The GPSA offers guarantees against political risks, currency convertibility and currency repatriation risks, among others,” said Simbanegavi.
She expressed confidence that this document, developed with assistance from the Africa Legal Support Facility (ALSF) of the African Development Bank (AfDB), is a crucial tool that will give comfort to investors.
The GPSA has already been signed with several IPPs, including a United Kingdom-based company currently developing a Solar PV project in the Midlands Province.
Further boosting transparency and efficiency, the Zimbabwe Investment and Development Agency (Zida) launched an online licensing system, which reportedly led to a 44,8 percent increase in investment licences in the first quarter of 2025 alone.
These domestic reforms are aligned with a broader national and regional vision.
Simbanegavi reaffirmed the Government’s commitment to achieving Sustainable Development Goal 7, ensuring access to affordable, reliable, sustainable, and modern energy for all by 2030.
She said to this end, the country has developed an energy compact with an ambitious target of achieving 5,4 Gigawatts of power supply by 2030.
The Deputy Minister also emphasised the critical pillar of Regional Integration, aiming to develop priority transmission infrastructure to support regional power trading through the Southern African Power Pool (SAPP).
Zimbabwe is committed to projects like the Batoka Gorge Hydro Electric Scheme and implementing harmonised regional transmission pricing by the end of 2026.
Through strategic reforms, tangible incentives, and a clear commitment to private investment, the Government is powering up its journey towards its national vision of becoming an upper-middle-income economy by 2030, underpinned by a resilient and sustainable energy sector.
Londile Moyo
Bongani Ndlovu