Housing developers urged to invest in energy projects

ENERGY and Power Development Minister, July Moyo, has challenged land developers to go beyond housing provision and invest in the energy sector for new settlements, as he called for reforms on energy provision.

Minister Moyo has said there are vast but largely untapped business opportunities in the energy sector, supported by the country’s robust energy mix.

Speaking at the inaugural National Competitiveness Commission’s Competitiveness Summit in Bulawayo on Wednesday, he noted that while many new settlements have been developed with essential infrastructure such as roads, water, and sewer reticulation systems, they often lack electricity.

This, he said, presents a significant business opportunity for developers to invest in electricity infrastructure.

“There is a lot of business in the energy sector. We have built too many settlements, which are dark cities. If you go to Rangemore in Bulawayo, there are entrepreneurs who are building over 4 000 housing units and businesses there,” he said.

“But while they are doing everything to make sure that they flourish, and they are doing everything to make sure that there is water reticulation, they are not doing anything to make sure that there is power distribution because that remains the responsibility of Zesa,” said Minister Moyo.

He stressed the need for reforms in electricity provision models and the construction sector, advocating for developers to play a role in power supply.

“Part of what we need to do is to reform and say an entrepreneur who builds 4 000 housing units should be allowed to have a substation,” Moyo said.

“That substation may be either an 11 kVA or a 33 kVA power line into that substation. In other countries, they have said in the transformation of the electricity supply model, you build this, and power supply to individual households is your responsibility.

“That makes that person become a businessperson in the substation. That’s the way we should be going.”

Minister Moyo acknowledged the ongoing power initiatives but stressed the importance of implementing them at competitive rates.

He also called for a radical shift toward solar power usage to help bridge the energy gap.

Zimbabwe’s average electricity access rate stands at 62 percent, with the Government aiming for universal access by 2030. Achieving this ambitious goal requires electrifying more than 500 000 households annually, a significant increase from the current average of 30 000.

To bridge this gap, the Government is promoting solar energy, targeting the distribution of 1,2 million solar home systems by 2030.

Zimbabwe’s current maximum energy demand is approximately 1 900 MW, projected to rise to 5 600 MW by 2030.

However, the country’s installed capacity of 2 950 MW is underutilised, with only 1 300 MW achievable due to low water levels at the Kariba Hydro Power Plant and unreliable generation from aging thermal plants.

The deficit is currently covered by imports from South Africa and Mozambique.