Zim sustains 115 days of no load-shedding

Rutendo Nyeve

Victoria Falls Reporter

A COMBINATION of increased power generation capacity, tariff reforms, regional power imports and captive production has seen the national grid stabilising, with over 115 consecutive days without load shedding.

This is a huge milestone under the Second Republic led by President Mnangagwa, as power is a key enabler to investment attraction and productivity, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has revealed.

ZETDC acting managing director, Engineer Howard Choga, told delegates during a recent business conference in Victoria Falls that the prolonged period without power cuts was a direct result of strategic policy interventions and growing private sector participation in electricity generation.

“I am sure that industry and commerce, as well as agriculture, domestic, all have sufficient energy to contribute to the economic activities that we just see Zimbabwe progress to meet the objectives of our vision for the debt,” said Eng Choga.

He attributed the turnaround to the Zimbabwe Energy Compact, a policy framework guiding investment into the sector.

“I would say that we are guided by different policies, but primarily by the energy compact. I think you all know the Zimbabwe energy compact, which basically guides us to be able to get plus or minus US$9 billion of investment into the sector. We look forward to having that come to the private sector,” said Eng Choga.

He revealed that ZETDC is targeting an expansion of electricity access, aiming to connect approximately three million new customers by 2030.

“That takes us to probably plus or minus 300 000 per year, up from the less than 50 000 that we have been connecting in the past years.

“So, that speaks to the need for infrastructure development and investment over the years, which I think is going to be a very important part of the Zimbabwe economy,” he said.

The utility’s improved performance has been significantly bolstered by captive power production, particularly among ferrochrome smelters.

Eng Choga said more than half of the country’s 14 ferrochrome smelting plants are now above 50 percent implementation of captive power projects.

“The tariff structure is then such that they may have to give us some energy when their plants are commissioned instead of paying in cash,” he said. “That is the arrangement that is on the ground.”

ZETDC has also learned costly lessons from past tariff models. Eng Choga revealed that between 2012 and 2022, a commodity-linked tariff structure proved disastrous for the  utility.

“For 10 years, that did not happen, and Zesa actually lost just about US$500 million to that tariff structure because the upside of ferrochrome was very low,” he said. Since December 2023, the utility has maintained a near-cost-effective tariff of approximately 16.07 cents per kilowatt-hour, while offering preferential rates to the ferrochrome sector at a maximum of 10 cents per kWh, with 8 cents paid in cash and the balance in kind.

Eng Choga also highlighted the role of regional integration through the Southern African Power Pool (SAPP).

“Zesa is a member of Southern African Power Pool, where countries in SADC are interconnected for purposes of grid stability, as well as trade of excess capacity by different utilities,” he said.

“Thanks to the ability for us to be able to buy power from the region during hours of our increased demand.”

Renewable energy is also making growing contributions, with rooftop solar and other net-metering projects now generating just under 90 megawatts.

“I think people may underestimate the development of, say, 5, 10kVA at every household, and that household being capable of exporting to the grid,” he said.

Looking ahead, the acting managing director projected investment requirements of up to US$9 billion by 2030, with US$4,2 billion expected from the private sector. “These numbers are not from the sky. They are projected numbers from the activities and potential that we have,” he said.

While celebrating the stability milestone, Eng Choga acknowledged persistent challenges, including vandalism of infrastructure, non-payment of bills, and maintenance backlogs due to cash flow constraints.

He urged stakeholders to support the utility’s efforts, emphasising that electricity supply is the prime mover for industrial development.

“As we speak, we have got a few pain points. There is vandalism of infrastructure. There is non-payment of bills. There is no maintenance on the network because of other cash flow challenges, which we are improving on,” he said.

The 115-day record without load shedding marks a significant turnaround for Zimbabwe’s power sector, which for years endured chronic blackouts that crippled industry and households alike.