Overview
Zimbabwe’s electricity supply is primarily generated by coal and hydroelectric power plants, with Chinese firms dominating the market. The country’s installed power generation capacity of 2,600 megawatts (MW), with average generation at approximately 1,500 MW, falls short of the 4,000 MW required to fully support industry and households. To address the shortfall, Zimbabwe imports electricity from Zambia and Mozambique.
In 2023, the Government of Zimbabwe (GOZ) commissioned two new thermal power units at the Hwange power station, adding 600 MW to the grid. However, demand continues to exceed supply. Zimbabwe has approved several solar and coal energy projects, but these remain under development. The country’s main hydropower plant at Kariba Dam and the Hwange coal-fired power station operate at one-third of their capacity due to aging equipment and low water levels at Kariba. As a result, Zimbabwe experiences periodic blackouts lasting up to 12 hours, exacerbated by the government’s limited financial capacity to import electricity from neighboring countries.
General Electric Co. (GE) was previously selected to produce turbines for the planned Batoka Gorge hydroelectric power plant, a $4.5 billion project designed to generate 2,400 MW shared equally between Zambia and Zimbabwe, with surplus power feeding into the Southern Africa regional grid. However, the project has been on hold since April 2021 due to financing challenges. In 2023, Zambia canceled a 2019 contract awarded to General Electric Co. and China’s Power Construction Corp., citing procurement irregularities. Despite these setbacks, Zambia and Zimbabwe are intensifying efforts to attract investment for the long-stalled project.
Opportunities
Zimbabwe’s ongoing power crisis, increasing demand for solar energy, and favorable climate for solar power generation present significant opportunities for U.S. companies. The country’s aging coal plants, many of which are in disrepair, offer additional opportunities for U.S. firms to provide maintenance and equipment upgrades, including clean coal technology.
Even with the completion of the Batoka Gorge hydroelectric project, Zimbabwe will still face energy shortages, particularly in the mining sector. Mining companies have expressed interest in investing in private power generation to support 24/7 operations. Additionally, exploration of potential oil and gas deposits in Muzarabani is ongoing, creating further opportunities for U.S. energy firms.
Resources
Zimbabwe Power Company
12th Floor, Megawatt House, 44 Samora Machel Avenue, Harare
Email: pr@zpc.co.zw
Phone: (+263 24) 2250407-9, 2770675, 2770672
Zimbabwe Energy Regulatory Authority (ZERA)
14th Floor Century Towers, 45 Samora Machel Ave, Harare
Email: admin@zera.co.zw