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Nqobile Bhebhe , [email protected]

ZIMBABWE continues to attract massive private sector-driven energy investments with the latest pitch for a 600MW thermal power plant project set for Kalungwizi, Binga District, in Matabeleland North province.

The investment proposal by Yuanlin Energy Investments (Pvt) Ltd, an Independent Power Producer (IPP), adds impetus to the growing energy value-chain investments in the province, and is expected to significantly boost Zimbabwe’s power generation capacity as the country strives to produce enough electricity to meet its demand.

The proposed investment is a confirmation that Zimbabwe is fast becoming an investment destination of choice in the region and beyond. Binga, which is now attracting big investors, is also home to a giant coal mining project being run by British investor, Contango Holdings in Muchesu area.

The new investments being witnessed across the country highlight the positive impact of comprehensive reforms introduced by the Second Republic.

Government is encouraging greater private sector participation in energy production, particularly renewable energy. 

The 600MW Kalungwizi project is expected to play a pivotal role in this broader strategy, reinforcing Zimbabwe’s energy security and supporting economic development.

Yuanlin Energy Investments has since engaged local environmental consulting firm ELWAS (Pvt) Ltd to conduct an Environmental and Social Impact Assessment (ESIA), in compliance with the Environmental Management Act and the Environmental Impact Assessment & Ecosystems Protection Regulations.

“Yuanlin Energy Investments (Pvt) Ltd intends to develop a 600MW thermal power project in Kalungwizi, Binga, Matabeleland North Province. 

“The project aims to contribute to the country’s energy mix and support economic growth by generating 600MW of electricity that will be added to the National Grid,” said the company in a public notice.

The company has since asked interested and affected parties to submit their comments, views and concerns by April 3.

Economic analysts have said such projects are set to boost Zimbabwe’s electricity generation to meet rising demand while reducing electricity imports.

IPPs are already playing a crucial role in complementing Government’s efforts to increase power generation.

Notable IPP projects include ZZEE’s 50MW thermal power plant in Hwange, which is already feeding power into the national grid.

Dinson Iron and Steel Company’s 50MW thermal power project in Manhize near Mvuma town, Blanket Mine’s 13MW solar photovoltaic (PV) plant, Zimplats’ 35MW solar PV plant and Centragrid’s 25MW solar PV plant in Nyabira, west of Harare are some of the projects feeding power into the national grid.

Zimbabwe Power Company (ZPC) daily reports indicate that IPPs are now contributing between 85MW to 120MW to the national grid, and more is expected as new projects are completed.

Zimbabwe-Power-Company

Economist, Ms Alice Chironzi, said investments in energy sector particularly the expansion of thermal and renewable power projects, are a positive step toward addressing the country’s electricity deficit.

“The entry of independent power producers (IPPs) has injected much-needed capital and innovation into the sector, complementing Government efforts to achieve energy self-sufficiency,” she said. 

Ms Chironzi said while thermal power remains a key component of Zimbabwe’s energy mix, balancing this with sustainable renewable energy investments is crucial in the long-term.

“Policy consistency, infrastructure upgrades and a stable regulatory environment will be essential to attract further investments and ensure reliable electricity supply for industrial growth and economic stability,” she said.

Zimbabwe has historically relied on coal reserves, particularly from the Hwange region, to fuel its thermal power plants.

The Hwange Thermal Power Plant has been a key component of this strategy, along with older facilities in Bulawayo, Munyati and Harare.

However, aging infrastructure has led to frequent breakdowns and declining power output, exacerbated by periods of under-investment.

According to the latest Index of Electricity Generation (IEG) report from the Zimbabwe National Statistics Agency (ZimStat), IPPs have become a critical part of Zimbabwe’s energy diversification strategy, and contributed 4,9 percent of the total supplies in the fourth quarter of last year, highlighting the latitude for increased private-sector involvement.

The increasing output from IPPs has helped Zimbabwe trim on imports, which have declined by 20,2 percent from 611,1 GWh in the third quarter of 2024 to 487,8 GWh in the fourth quarter.

Zimbabwe’s power supply, at about 1 400MW, remains significantly lower than the estimated 2 200MW required to meet the peak period demand. The Government is working on various public-funded and private sector-led initiatives to drive production to meet the country’s demand.

“Electricity is the backbone of industrial productivity. While a temporary decline poses challenges, it also signals where investment is needed to stabilise supply and unlock new growth,” economist Namatai Maeresera, said.

Despite these challenges, the Government is actively working to strengthen the thermal power sector. Recent efforts to expand and upgrade the Hwange Thermal Power Plant underscore its commitment to ensuring a stable energy supply.

Declining water levels at Lake Kariba caused by recurring droughts have significantly reduced hydroelectric output, thereby worsening the country’s energy deficit.