Zimbabwe’s Electricity Future: Investing in Renewable Sources and Independent Power Producers

State utility, Zimbabwe Electricity Supply Authority (ZESA), says it intends to increase its tariffs, for them to meet the current electricity production and maintenance costs. The proposed increase is $0.02 per kilowatt-hour (kWh) on the current tariff. The tariff of US2 cents/kWh translates to about $147 in local currency. Currently, Zesa electricity tariffs are at least $137 per/kWh.

The power utility says this review was necessitated by the need to generate revenue for service provision, covering expenses for electricity purchase, operations and maintenance, regulatory costs, research and development, and general administration. 

Literally to keep the lights on.

Pragmatists will agree that this is a step in the right direction, as it seemed unsustainable to have such low tariffs. The move, although small, will allow ZESA to be able to import power, to supplement what is produced locally.

If we are to see improvements in electricity supply, then people have to pay for it. Zesa is grappling to meet a growing electricity demand fuelled by a mining economy which is targeting $12bn annual production by 2023.