• Streamlining Fuel Station Licensing: ZERA is implementing new regulations to streamline the process of obtaining fuel station licenses
  • Energy Sector Growth in Q2 2024: Energy sector experienced an increase in electricity supply with a total of 2,897 GWhs generated
  • Balancing Growth and Environmental Concerns: ZERA faces the challenge of balancing this growth with environmental protection
  • Effective enforcement and combating corruption are crucial for success

Harare- Zimbabwe's Energy Regulatory Authority (ZERA) is taking a proactive approach to streamlining the construction and operation of fuel stations, aiming to balance the growing demand for fuel access with public safety and environmental concerns.

The surge in fuel station construction, with the number of licensed stations jumping from 299 in 2012 to 1,048 in 2023, has raised concerns about safety and environmental impact.

“ZERA is working with the Ministry of Local Government, Public Works and National Housing to develop a framework or MOU for regulating the construction of fuel retail sites in local authority areas, especially urban areas.

“The framework shall help streamline the licensing process for newly built retail sites as well as allay concerns of the public regarding spacing of fuel retail sites in urban areas,” said ZERA.

During the quarter, the agency conducted rigorous fuel quality monitoring, collecting 150 samples from retail sites. While the majority of samples met quality standards, 4 were found contaminated with water and 9 were suspected of adulteration.

"Fuel quality checks on fuel retail sites led to the prosecution of 13 sites over  the six months of the year, who failed to meet the fuel quality standards due  to contamination and adulteration," the Agency said in its latest quarterly report. 

Streamlining means making the process of getting a license to build a new fuel station more efficient and transparent. It aim to achieve this by establishing clearer guidelines for where fuel stations can be built, how far apart they need to be, and what safety standards they must meet.

This will provide a more predictable and less bureaucratic process for potential fuel station owners.

However, the success of ZERA's initiative hinges on its ability to combat corruption, a persistent challenge in the country.

Bribery and favoritism in the licensing process will undermine the integrity of the system and compromise public safety. If ZERA fails to address corruption effectively, its new regulations risk becoming ineffective.

In South Africa, the Department of Mineral Resources and Energy has implemented a streamlined permitting process for fuel stations, focusing on environmental protection and public safety.

Similarly, in Kenya, the Energy Regulatory Commission has established clear guidelines for the location and spacing of fuel stations, aiming to minimize environmental impact and ensure public safety.

Streamlining leads to a more efficient process, allowing for faster construction and operation of fuel stations. This, in turn, will contribute to improved safety standards and reduced risks.

Additionally, a streamlined process can help ensure that fuel stations are built and operated in a way that minimizes environmental impact.

However, there are also challenges associated with this initiative. ZERA will need to find the right balance between supporting the growth of the fuel industry and ensuring public safety and environmental protection.

Energy Sector Developments:

Overall, the energy sector in Zimbabwe continues to experience growth and development, with a total of 2,897 GWhs supplied during the 2nd Quarter of 2024. This consists of 2,456 GWhs supplied by ZPC whilst IPPs supplied 108 GWhs, contributing 4.8% of local generation.

Imports from regional utilities were 510 GWhs whilst exports to Nampower and the Day-Ahead-Market (DAM) were 177 GWhs.

Key highlights from the first half of 2024 include:

  • One small hydro power plant, Odzi Plant, was commissioned with a capacity of 0.4MW.
  • Energy delivered from Transmission for the 2nd quarter of 2024 increased by 20% compared to 2,405 GWh delivered during the first quarter of 2024.
  • Promotion of Net-Metering has resulted in 15MW capacity installed to date.
  • A total of 35 accidents have been recorded in H1 2024. Fifty-one percent (51%) of the accidents were fatal and due to unsafe practices by the public.

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