Govt increases tariffs to $0.16 per kilowatt-hour

The Government recently increased tariffs to $0.16 per kilowatt-hour, surpassing the profitability threshold of $0.10 per kilowatt-hour, creating a $0.06 margin for private investors.

The government also guaranteed power purchase agreements, ensuring Treasury pays Independent Power Producers if the Zimbabwe Electricity Supply Authority (ZESA)/Zimbabwe Electricity Transmission and Distribution Company (ZETDC) defaults.

Key Points on Energy Projects for improvement in power generation.

Foreign Currency Access: Policies in place to provide foreign currency for servicing foreign loans and equity dividends via the Government Implementation Agreement.

Private Sector Investments:
-Multiple independent power producers focusing on solar energy.

-Coal power stations initiated by private investments, particularly mining companies.
-Examples include PPC, Zimplats, and Manhize (iron and steel producer).

Transmission Infrastructure:
Increased private investor interest in partnering with ZESA for transmission infrastructure, with an MOU signed with a foreign investor.

Revenue Collection Improvements:
-Expansion of prepaid meters and a net metering program to tackle defaulters.
-Expected revenue increase to fund further investments.