New firm to distribute electricity in the country

A local company Renewable Energy Hub has applied to the Zimbabwe Energy Regulatory Authority (ZERA) for an electricity distribution and retail license that will allow it to purchase power from both local and regional producers for re-sale.

ZERA has in the past received applications for electricity licenses primarily from independent power producers (IPPs) but Renewable Energy Hub’s focus on retail represents a shift in the power supply chain landscape.

Currently, Zimbabwe Electricity Transmission and Distribution (ZETDC), a subsidiary of ZESA Holdings, manages the country’s electricity distribution system, handling bulk transmission across the nation.

IPPs play a crucial role in generating electricity, primarily for their consumption. However, any excess power they produce can be sold to ZETDC.

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

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 license but the law empowers the commission to adjust this threshold through statutory instruments.

ZERA may issue a temporary license to any person for a period not exceeding one year if it determines that it is necessary in the public interest.

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.

Despite a centralized grid managed by ZETDC, the electricity retail market is emerging in Zimbabwe, driven by independent players seeking to offer alternative solutions and cater to specific customer needs.-newsday