President courts investors for renewable energy projects

Nduduzo Tshuma recently in Sharm El-Sheikh, Egypt

PRESIDENT Mnangagwa has invited investors to partner Government in rolling out renewable energy projects in the country and across the region to spur economic activity whose increasing demand outstrips current power generation capacity.

With regional economies on the rebound, the President has said that demand for energy to spur industrial activity has shown an escalating trend and in the case of Zimbabwe, it is driven by growth across all sectors of the economy mainly mining, agriculture, manufacturing and infrastructural development.

The pressure on current energy supplies and the need for more renewables in the energy mix has been given impetus by calls to scale down the use of coal.

President Mnangagwa was speaking during a high-level event on powering the Southern African Power Pool hosted by Tanzanian President, Samia Suluhu Hassan, on the sidelines of the UN Conference on Climate Change (COP 27) in Egypt on Tuesday.

The Southern African Power Pool (SAPP) was established in 1995 to create greater cooperation among 12 governments in the southern Africa region and planning of power generation facilities for mutual benefit of the regions.

The Pool Plan aims to identify possible development and investment in the energy sector to provide adequate electricity supply to the region that is efficient and environmentally and socially sustainable.

The event was also attended by Botswana President Dr Mokgweetsi Masisi, Zambian President Hakainde Hichilema, Angola’s Vice-President Esperança Maria Eduardo Francisco da Costa, African Union Commissioner for Infrastructure and Energy Dr Amani Abou-Zeid, World Bank President Mr David Malpass and African Development Bank President Dr Akinwumi Adesina as well as captains of industry.

President Mnangagwa said the Southern African region is equally experiencing limited energy supply due to droughts resulting in low water levels for hydropower generation, transmission and bottlenecks that limit energy trading within SAPP.
“Zimbabwe like many Sadc countries, has vast renewable resources such as hydro, solar, wind and potential for geo-thermal, which can be converted into electricity,” he said.

“The country has substantial hydropower potential, which, if fully developed, could provide sufficient power to meet Zimbabwe’s base load needs.”

The hydropower potential is mainly concentrated along the Zambezi River and in the eastern highlands and other potential sites like the Devil’s Gorge and Mupata Gorge along the Zambezi River on the border with Zambia.

Feasibility studies have been completed for the 2 400 megawatt Batoka Gorge Hydro-Electric Scheme project, which will be shared equally between Zimbabwe and Zambia.

“We, therefore, invite potential investors to partner us in our renewable energy projects such as Batoka and other Gorges, large solar parks, wind projects in Zimbabwe, which have a regional impact,” said President Mnangagwa.

Government has provided incentives through the Renewable Energy Policy, which include reduced taxes and duty exemptions on equipment, prescribed asset status and third access to the grid and priority dispatch for renewables.

It is also allocating funding for development of mini grid systems through the Rural Electrification Fund to accelerate access.
“Zimbabwe is open for business and we continue to call for investors to come and invest in the energy sector to meet the country’s growing demand and also that of the Sadc region as we are strategically located and connected to our neighbours through the SAPP,” said President Mnangagwa.

“Investment opportunities are also abundant in storage battery manufacturing through lithium value chains as well as in the assembly of solar panels, home systems and other potential inputs of renewable energy projects.”

President Mnangagwa said increased regional electricity trade plays a vital role in supporting access to reliable, affordable and sustainable energy in Sadc and can enhance regional and national security of power.

According to the 2017 SAPP Plan, strategic interconnection across the region can bring between US$37 billion and US$42 billion of cost of savings in net present value terms.

The President said the Zambezi basin portion shared by Zimbabwe, Zambia and Mozambique remains largely underutilised and the four catchment areas – Kariba, Kafue, Mupata and Tete consist up to 10 potential hydropower sites with a combined installed capacity of 15,57GW.

“Regional integration is key in realisation of Zimbabwe’s de-carbonisation strategy as the country has abundant renewable energy resources, which when fully utilised will make the country a net exporter of electricity,” he said.

In addition to the much-needed energy, the integrated development of hydropower plants along Zambezi River will expedite the region’s efforts in transitioning from fossil fuels to renewables.

Therefore, President Mnangagwa said there is a convincing case to prioritise investments in renewables in order to realise economic benefits.

“To this end, the private sector is critical in developing projects and mobilising funding to fill the current financing gaps,” he added.

“Opportunity exists for other innovative and sustainable means to provide security of investment in renewables including the use of the SAPP competitive market.”

Leaders, at the end of the event, committed to increase cooperation towards accelerating SAPP goals.
The World Bank president, Mr Malpass, said his organisation was ready to partner the region in renewable energy projects as they are already involved in similar projects in other parts of Africa.

Dr Adesina said there was a need to burst the myth that Africa was a risky destination for investment as in actual fact, it has the lowest risk compared to other regions.

President Mnangagwa returned from Egypt yesterday morning and was received at the Robert Mugabe International Airport in Harare by Vice-President Dr Constantino Chiwenga, ministers, senior government officials and service chiefs.

Article Source: The Chronicle