Energy sector attracts more international firms

ZIMBABWE’S vastly untapped energy sector has attracted a Swedish firm that has partnered with a local company to explore energy storage projects while another local firm is seeking an electricity distribution and retail licence from energy regulators, a significant shift in the power supply chain.

The Swedish firm — Sustainable Energy Solutions Sweden Holding (SENS) — has expanded to Zimbabwe by entering into a collaboration agreement with the local actor Nyembesi Corporate Services Africa

Through this partnership, SENS aims to explore and evaluate potential energy projects in the Zimbabwean market.

Based on the company profile, SENS develops, designs, constructs and sells large-scale energy projects combining renewable energy sources with the next generation energy storage technologies such as underground pumped hydro storage (UPHS) and/or battery energy storage systems (BESS).

The company also conducts technical advisory consultancy services within energy storage and energy systems optimisation. The company is listed on NGM Nordic SME under the short name SENS.

In an update announcing its entry and collaboration, the firm said: “SENS, which has recently secured several key market shares and experienced increased demand for its energy solutions, is now expanding its international presence.

“This is done through a strategic partnership with Nyembesi in Zimbabwe, a market that has been identified as particularly promising for the development of sustainable energy storage solutions.”

The update noted that Nyembesi is a leading development company in the energy sector in Zimbabwe and will intensify lead generation to find suitable projects.

“With its extensive local knowledge and resources in the region, Nyembesi is well-positioned to identify attractive projects. SENS will initially assist Nyembesi with relevant data and information to find potential projects, and then lead the due diligence process and assess the feasibility of the projects,” it added.

Through this collaboration, SENS further strengthens its presence in the African market, building on its previous establishment in South Africa, added the update.

SENS chief executive office, Mr Henrik Boman said expansion to Zimbabwe represents a significant step in the firm’s international growth.

“By expanding our presence internationally, we become a more active participant in the global green transition. The current global energy landscape faces significant challenges, and with this strategic partnership, we intend to reinforce our international commitment to sustainable energy development, and we look forward to collaborating with Nyembesi.”

On behalf of Nyembesi, Mr Wellington Pasipamire the chief executive officer said, “The collaboration agreement with SENS is clear proof that technical solutions form the foundation of a carbon-neutral and energy-efficient future.

“It strengthens the ambitions from COP28 and facilitates the implementation of climate-resilient strategies. The agreement targets Zimbabwe as benefactor of SENS’s expertise and capacity in energy storage and system solutions in various generative environments, in a sustainable and cost-effective manner.

“We at Nyembesi look forward to this collaboration and the immense benefits it will bring for Zimbabwe and its ecosystem,” he said.

In Zimbabwe, only 52 percent of the entire population has access to electricity, according to the 2022 census statistics.

This creates opportunities for further investment in power generation, especially renewable energy in an era of climate change that is attributed in part to burning fossil fuels.

At the same time the economic growth sees ever higher demand by miners, industrialists and farmers for more power.

Government introduced energy policies that effectively set the tone for the development and sustainable exploitation of renewable energy.

The main objectives of the policies are to forge stronger relationships, partner renewable energy companies as well as to present the roadmap for strategies.

Meanwhile, a local company- Renewable Energy Hub has applied to the Zimbabwe Energy Regulatory Authority (Zera) seeking an electricity distribution and retail licence, a significant shift in the power supply chain.

The firm intends to purchase power from both local and regional producers for re-sale.

“The licence authorises the company to purchase electricity from various sources including local and regional suppliers and sell to its customers,” Zera said in a statement.

The licence application is done in terms of the provisions of Sections 40, 44 and 46 of the Electricity Act (Chapter 13:19”

Section 40 of the Electricity Act stipulates that operating an electricity business in Zimbabwe for generation, transmission, distribution, or supply exceeding 100 kilowatts (kW) requires a Zera licence but the law empowers the commission to adjust this threshold through statutory instruments.

Section 44 of the Act says a primary distribution license shall authorise the licensee to construct, operate and maintain a distribution system and facilities including the connection of customers and the installation, maintenance and reading of meters, billing and collection.-chronicle