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Business Reporter
ZIMBABWE is on track to produce 1 100 megawatts from renewable sources after the Government came up with incentives to attract capital for projects with less negative impact on climate, Energy and Power Development Minister Zhemu Soda has said.
Last year, the Government tabled various incentives to shore up investments in renewable energy in a bid to meet its target. The incentives include Government guarantees for investors to remit dividends in foreign currency and be able to repay offshore loans.
The Zimbabwe National Renewable Energy Policy, launched in 2019 set the target of achieving a renewable capacity of 1 100 MW or 16,5 percent of overall electricity supply by 2025. By 2030, it targets 2 100 MW or 26,5 percent of the overall supplies, which is in line with its pledge to reduce greenhouse emissions by 2030.
The policy also aims to have installed 250 000 solar geysers, increase the use of institutional and domestic biogas digesters, deploy the use of solar mini-grids and solar water pumping solutions, and boost the use of renewable technologies.
To encourage investments in renewables, Zimbabwe is offering other incentives including duty and tax exemptions and prescribed asset status for pension and insurance companies.
“The real issue was to do with risks associated with local currency and the investors felt that they would be left exposed, but that has been finalized,” said Minister Soda.
“We have now seen a lot of appetite for renewable energy and there are a lot of projects that are already in the pipeline. We are still optimistic that the target of 1 100 can still be achieved,” Minister Soda said.
More than 35 African countries, Zimbabwe included, and well over 1000 major companies have committed to emissions cuts in line with the goals of the 2015 Paris Agreement on climate change, which seeks to keep global warming below 2 degrees Celsius and strive for a ceiling of 1,5 degrees by 2030. Investments in renewables would be driven by off-grid standalone home systems and mini and huge solar plants.
Official studies have shown that Zimbabwe is emitting an estimated 26 000 of carbon dioxide, equivalent to 0,05 of global emissions. Energy generation contributes about 48 percent to the emissions, agriculture 44 percent, and waste 3 percent.
Before the 21st Conference of Paris to the United Nations Framework on Climate Change, Zimbabwe submitted its Intended Nationally Determined Contribution like most parties to the convention.
The INDCs were the country’s submission of greenhouse gas emissions reduction ambitions.
The INDCs were adopted under the Paris Agreement to influence climate change mitigation efforts pursuant to the temperature goal by 2030.
Zimbabwe submitted a conditional 33 percent energy sector per capita greenhouse gas emission reduction target. Zimbabwe needs about US$90 billion to meet its climate goals.
Of this, US$55 billion is targeted at clean energy.
Online Reporter