Zimbabwe's Untapped Power Generation Sector
Overview
Zimbabwe’s power generation sector is pivotal for its economic growth and development. Currently, the country faces significant energy challenges, including frequent power outages and heavy reliance on imports. However, there is immense potential for investment in both renewable and non-renewable energy sources.


Current State
- Installed Capacity: Zimbabwe’s total installed capacity is around 2,300 MW, primarily generated from Kariba Hydroelectric Power Station and Hwange Thermal Power Station.
- Energy Mix: The country’s energy mix includes hydroelectric power (Kariba Dam), thermal power (Hwange Power Station), and a growing interest in solar and wind energy.
- Imports: Zimbabwe imports electricity from neighboring countries such as South Africa and Mozambique, which accounts for approximately 40% of its energy needs.
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Investment Opportunities
- Renewable Energy: With abundant sunlight, Zimbabwe is an ideal location for solar energy projects. Wind energy also holds potential in specific regions.
- Hydroelectric Power: Expansion projects at Kariba Dam and potential new sites along the Zambezi River present significant opportunities.
- Thermal Power: Modernizing and expanding existing thermal power stations can improve efficiency and capacity.
Why Invest?
Investing in Zimbabwe’s power generation sector can yield substantial returns due to:
- High demand for reliable energy.
- Government incentives for renewable energy projects.
- Opportunities for public-private partnerships.

Regulatory Environment
Zimbabwe is actively promoting renewable energy projects to address its power shortages. The government supports independent power producers (IPPs) by guaranteeing the bankability of projects and offering a capped tariff of US$0.09 per kWh for solar energy. Recent initiatives include the commissioning of several solar and mini-hydro projects, signaling a strong commitment to expanding the renewable energy sector .
Current Projects:
- 10 IPP projects backed by the government with a combined capacity of 271 MW.
- New solar PV plants in various provinces and mini-hydro power stations are under development, enhancing the country’s internal generation capacity
Opportunities for Investors:
Investors can benefit from government incentives, a favorable tariff structure, and the growing demand for sustainable energy solutions. Additionally, partnerships with local stakeholders and leveraging blended finance options can provide robust financial returns and social impact