Electricity demand expected to go up 20 percent

MINING executives project electricity demand and diesel consumption in the sector to increase by 20 percent and 35 percent respectively next year largely due to ongoing capital projects which are major drivers of energy.

The sector is experiencing heightened activity with most firms in expansion mode with closed mines set to reopen.

The expansion process will require more electricity to meet the expected demand.

Apart from the mining sector, the country’s economy is on a rebound due to various policies initiated by the Government that have seen growth in the agricultural sector while capacity utilisation in the manufacturing sector jumped to close to 60 percent.

Officials say the country will need to boost electricity supplies to 2 350MW by 2025 due to the economic growth being experienced especially through investments in the mining sector.

The demand for power is an indication of improving economic performance.

Mining remains a vital sector whose exports account for about 60 percent of Zimbabwe’s export earnings thus contributing significantly to the national GDP hence the need for dedicated attention to the supply of power to the sector.

A new State of Mining Industry Survey Report for 2024 released by the Chamber of Mines last week indicates that mining executives are expecting their operations to consume more power in 2024.

“On average, mining executives are expecting their operations to consume more power in 2024, compared to 2023. Analysis of survey data shows that electricity demand is expected to increase by around 20 percent in 2024 while diesel consumption is expected to increase by 35 percent. Most respondents cited ongoing capital projects as the major drivers of energy,” reads part of the report.

However, while the reports note that mining executives reported that power supply was generally fragile with reports of unscheduled power outages resulting in production stoppages and output losses and increased demand for power on the back of new and expansion projects, they recommended prioritisation of mining companies for available power and incentivise private power projects including tax incentives to support investments in Independent Power Projects that supplement available power.

Recently, high energy power consumption firms mostly in the mining sector have been setting up solar plants.

Last year, the Government tabled various incentives to shore up investments in renewable energy in a bid to meet its target.

The incentives include Government guarantees for investors to remit dividends in foreign currency and be able to repay offshore loans.

The Zimbabwe National Renewable Energy Policy, launched in 2019 set the target of achieving a renewable capacity of 1 100MW or 16,5 percent of overall electricity supply by 2025.

By 2030, it targets 2 100MW or 26,5 percent of the overall supplies, which is in line with its pledge to reduce greenhouse emissions by 2030.

The policy also aims to have installed 250 000 solar geysers, increase the use of institutional and domestic biogas digesters, deploy the use of solar mini-grids and solar water pumping solutions, and boost the use of renewable technologies.

To encourage investments in renewables, Zimbabwe is offering other incentives including duty and tax exemptions and prescribed asset status for pension and insurance companies.-chronicle