The availability of adequate and reliable energy is critical for the achievement of projected GDP growth rates. Commercial energy. Commercial energy is dominated by electricity, while wood fuel provides energy for domestic use mainly in the rural communities and urban poor. The national total installed capacity is 1960MW and the national demand is approximately 2200MW against actual output os 1140MW. Of the national installed capacities, thermal power accounts for 1210MW hydro accounts for 750MW operating at full capacity. Current production is 58%of capacity and part of the shortfall is met by imports.
Zimbabwe imports all of its requirements and the estimated monthly demand (litres)with economy at its peak for diesel, petrol, and jet fuel are 105 million, 90 million and 15 million respectively with transport and agricultural sectors consuming 60% and 13% respectively.
Challenges and Constraints
The energy sector is faced with a number of challenges:
- Ageing and obsolete equipment and poor state or infrastructure
- Operational challenges including undercapitalization compounded by debt ridden financial positions.
- Inadequate specialized skills and tools required for planning and forecasting energy needs;
- The high cost of rural electrification through grid extension and due to the scattered nature of settlements
- perceived country risk of potential investors
- Sub-economic tarrifs;
- Billing and collection challenges; and
- Theft and vandalism of infrastructure
Opportunities for Investment
- Investment in current electricity plants
- Investment in to new power generation plants which include Hwange power station
- Extension of the Kariba Power Station
- Extension of the Gairezi Power station
- Develop Lupane Gas fields as an alternative source of energy.
- Transmission and integration project.