SHARM El-SHEIKH, Egypt – INVESTORS should grab vast opportunities in the renewable energy sector that will not only benefit the country but the entire Southern African region, President Mnangagwa has said.
This comes as Zimbabwe joins the rest of the world in embracing green energy in the wake of the devastating impact of climate change that has been wrought by developed nations with a higher carbon footprint as compared to developing nations.
Although Zimbabwe, like most developing nations, did not contribute to climate change, President Mnangagwa has adopted measures that offer the framework towards migration to green energy through incentives that include reduced taxes and duty exemptions on equipment, prescribed asset status, third access to the grid and priority dispatch for renewables, through the Renewable Energy Policy.
In this regard, Zimbabwe is courting investors to partner the country in renewable energy projects that include the Batoka and other gorges, large solar parks and wind projects that will also have a regional impact.
The invitation is also responsive to the rising demand for energy as Zimbabwe accelerates its industrialisation and modernisation agenda, with the effect of demand now outstripping supply.
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 (COP27) in Egypt on Tuesday night, President Mnangagwa said the phasing out of fossil fuels calls for new investments in renewables.
COP27 is seeking to build on previous successes and pave the way for the effective tackling of the global challenge of climate change.
“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.
“The country has substantial hydropower potential, which, if fully developed, could provide sufficient power to meet Zimbabwe’s base load needs,” President Mnangagwa said.
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 project, which will be shared equally between Zimbabwe and Zambia.
The Southern African Power Pool (SAPP) was established in 1995 to create greater co-operation among 12 governments in the Southern Africa region and to facilitate 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, and 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, African Development Bank president Dr Akinwumi Adesina and captains of industry were also part of the event.
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.
“We, therefore, invite potential investors to partner us in our renewable energy projects which have a regional impact,” said President Mnangagwa.
“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.”
He added that Zimbabwe has vast investment opportunities in 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 trade plays a vital role in supporting access to reliable, affordable and sustainable energy in the Sadc region.
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.
President Mnangagwa 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.”
At the end of the event, leaders committed to increase co-operation towards accelerating SAPP goals.
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 debunk 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, Cabinet Ministers, senior Government officials and Service Chiefs. – The Herald
