- The government has released US$34 million to facilitate renewable energy production
- The government removed tariffs from energy investments in the country
- ZESA secured 200MW worth of power from Mozambique
The government is giving guarantees to 27 independent power producers, with projects of a combined 1000MW, to clear hurdles that have kept energy investors away and left Zimbabwe facing power shortages. The move will realign the national objective of attaining 2100MW renewable energy capacity by 2030 and hence assist in achieving the upper middle-income class by 2030.
Finance Minister Mthuli Ncube announced on Monday that the government agreed to a Government Implementation Agreement (GIA) for all solar-independent power producer projects. Under the agreement, all independent power producers will be guaranteed an economic tariff, while the Reserve Bank of Zimbabwe will ensure that they can convert their earnings to foreign currency and be able to transfer it.
Zimbabwe's energy sector has made some positive recovery after the sector and the government have tirelessly worked towards restoring order. This has been seen as the government recently disbursed US$34 million towards reviving IPPs which have fallen to 150MW from a capacity of 1000MW.
The power crises have been facing critique channelled by unmatched increasing demand from the mining sector with the falling supply. Following the temporary suspension of the Kariba South Bank Power Station, the economic performance went haywire and the resultant effects have drawn the attention of the political system as well as the FDIs income.
The government has secured an additional 200MW from EDM Mozambique by making a US$5 million down payment on the US$16 million owed. This effort has been supplemented by the government removing all the barriers to investment in the energy sector. As such, the operation of IPPs has been subsidised.
In addition, the United Nations have also made a US$10 million lump sum to the country to help in reviving the falling sector.
The realised assistance by the local and international stakeholders will likely see through the success of the energy sector.
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