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power shortages upon completion.
This followed moves to license private players to establish power projects that could feed into the national electricity grid.
According to Economic Planning and Investment Promotion Minister Tapiwa Mashakada, the two major projects include the 2 400 megawatt Sengwa Thermal Power Station being undertaken by RioZim at a projected cost of US$3,6 billion.
RioZim Limited has already indicated that it is carrying out feasibility studies in the area.
The Government also approved the proposed 2 000MW Lusulu thermal power plant which will be developed at a cost of around US$3 billion.
Energy and Power Development Minister Elton Mangoma has said five independent power producers have been licensed since last year for both the Sengwa and the Lusulu projects.
From last year the country has been generating around 900MW of electricity, although the Zesa Holdings recently increased power generation to around 1 400MW following refurbishment work mainly at the Hwange Thermal Power Station.
This is against an installed capacity of nearly 2 000MW, and national demand that exceeds 2 200MW. Total funding for the complete refurbishment of the Hwange Power Station is estimated at around US$100 million.
Zesa was only allocated US$25 million in this year’s National Budget.
The planned projects could result in an additional 4 400MW being added onto the national grid.
Observers, however, remain largely pessimistic about such energy output being produced in the short to medium term due to the size and scope of the proposed independent power projects.
In the 2011 National Budget, the Government proposed to allocate around US$30 million for refurbishment of both the main smaller power stations.
During his presentation, Finance Minister Tendai Biti noted the significance of private public partnerships in enhancing capacity in the energy sector.
He said that because the magnitude of resources required to bring energy supplies to surplus levels could only be raised from the market there was need “to improve the regulatory and investment framework for the power sector to lay the foundation for mobilisation of private sector investment”.
Government is, however, yet to set up an energy regulator despite opening up the sector to independent power producers.
Online Reporter