Nqobile Bhebhe
Zimpapers Business Hub
THE Government is strengthening national energy-sector reforms to enhance regulatory frameworks, long-term energy planning and drive private-sector investment in power generation to support economic growth.
The Ministry of Energy and Power Development has since invited interested and eligible consultants to express interest in providing external audit services for the Energy Sector Reform Support Project (ESRSP), financed through a grant from the African Development Fund.
The assignment, which will run for 24 months, forms part of a broader programme targeting regulatory improvements, energy planning, renewable power development and electricity system stability.
The project seeks to create an enabling environment for promoting IPPs, whose investments are expected to complement public-sector generation capacity and help meet the country’s growing electricity requirements.
“The objective of the project is to facilitate the creation of an enabling environment for promoting Independent Power Producers, thereby improving the availability of electricity supply to support economic growth,” the ministry said in the invitation for expressions of interest.
The initiative comes as reliable and affordable electricity remains critical to Zimbabwe’s industrial recovery, mining expansion, agricultural value addition and the development of new manufacturing capacity.
Power supply constraints can increase production costs for businesses through reliance on diesel generators and alternative energy systems, while unreliable electricity can disrupt production schedules and weaken competitiveness.
The southern African country faces a power supply deficit, with peak demand of up to 2 200 megawatts outstripping average domestic generation capacity of about 1 400MW.In response, the Government came up with the National Energy Compact, which is aligned with the United Nations Sustainable Development Goal 7 (UN SDG 7) and the country’s long-term development agenda – Vision 2030, which aspires to build a Prosperous and Empowered Upper-Middle-Income Society.
The Compact is a bold commitment to achieving universal access to reliable, affordable, sustainable and clean energy for all Zimbabweans by 2030, while advancing inclusive growth and climate resilience. It seeks to mobilise over US$9 billion in investments across generation, transmission, distribution, off-grid access and clean cooking, with more than US$4,42 billion expected from the private sector.
This is because the Government recognises that access to modern energy services is a fundamental enabler for industrialisation, improved health and education, gender empowerment and overall human development.
Zimbabwe’s energy strategy is rooted in the principle that the public sector must provide strong leadership in policy and planning, while mobilising private sector investment through appropriate de-risking mechanisms, competitive procurement and regulatory certainty. Strengthening the policy and regulatory environment could, therefore, help unlock private capital for generation projects while improving the institutional frameworks governing the electricity sector.
Under the programme, the Government intends to develop an Integrated Energy Resource Plan to guide investment decisions and improve coordination between different sources of energy.
The project will also support the design of an energy-efficiency programme for the public sector, alongside feasibility studies for renewable energy generation.
These interventions could help identify opportunities to diversify the country’s energy mix, reduce avoidable consumption and assess the viability of additional generation capacity.
Another component involves coordinating protection schemes on Southern African Power Pool (SAPP) interconnectors with the Zimbabwe Electricity Supply Authority (ZESA) grid to minimise recurring power system failures and blackouts.
Improved coordination between interconnected electricity networks is important for system stability, particularly where countries rely on regional power exchanges to supplement domestic generation.
Zimbabwe’s participation in regional electricity trading offers opportunities to access additional supplies when available, although the benefits depend on transmission capacity, available regional power and the reliability of interconnected systems.
The reform programme will also focus on developing a regulatory accounting framework and implementation roadmap for licensed stakeholders, as well as undertaking a comprehensive review of the electricity tariff methodology and framework.
These two areas matter for investment decisions because electricity tariffs, regulatory predictability, and transparent accounting arrangements affect the financial viability of generation and supply projects.
A predictable regulatory environment for independent power producers can improve assessments of project revenues, operating costs, and potential returns, although investment decisions will also depend on financing conditions, payment arrangements, and the bankability of power purchase agreements.
A review of the tariff framework could also provide an opportunity to examine how electricity prices balance the need for cost-reflective tariffs with affordability for households and productive sectors.
The external auditor will be engaged under the project financed by the African Development Fund, with the Ministry inviting eligible consultants to submit expressions of interest.
Consultants may form joint ventures to strengthen their qualifications for the assignment, the ministry added.
For Zimbabwe’s productive sectors, successful implementation could help create the conditions for a more reliable electricity supply, supporting industrial output, new investment and broader economic growth.
