Old Mutual targets more solar projects
Old Mutual Zimbabwe says it will continue investing in solar energy projects to bridge the power supply gap deficit in the energy sector.
The group and its partner SolGas recently commissioned the US$7,3 million SolGas Energy 5 megawatt (MW) solar plant at Cross Mabale in Hwange district. Old Mutual chief executive Samuel Matsekete said the group currently has a lot of projects that are already running and more are in the pipeline.
“We are open to invest in more green energy projects subject to them being viable and such projects meeting certain minimum criteria among them, sustainability of the arrangements.
“Therefore, we do have some projects that you may see in the near future which are already underway,” he said during a post analyst briefing recently.
Zimbabwe has a peak electricity demand of 1 600 MW against an average of 1 200 MW that it is currently generating with the shortfall covered through imports.
Electricity demand is expected to peak at 2 000 MW by the end of 2023 as demand is surging due to increased economic activity in various economic sectors that include mining, housing development and construction.
According to the National development Strategy 1 (NDS1), energy is a key enabler to the acceleration of the country’s modernisation and industrialisation agenda as well as sustainable socio-economic growth.
To address perennial power shortages in the country, the Government is undertaking several electricity generation projects, most of which are funded by extra-budgetary funds, loans and the private sector.
China has also been funding most of the major power generation projects in Zimbabwe in recent years, including the expansion of the Kariba South Hydro Power Station by 300 MW at a cost of US$535 million in 2018, and the current US$1,5-billion-dollar expansion of Hwange Thermal Power Station by 600 MW.
As of August 2021, Old Mutual Zimbabwe said it had invested over US$12,4 million into solar projects which will generate a combined 25 MW upon completion. The group’s new strategy is aimed at diversifying away from city buildings and venture into private infrastructure and equity investments, specifically in the energy sector.
Among other projects, Old Mutual invested in Harava Solar, which is building a 20MW solar farm in Seke just outside Harare.
The group has also funded the installation of solar-powered irrigation equipment to assist water reticulation and small-scale agriculture at 26 schools.
In addition, the company built a US$ 2,5 million solar plant at its Mutual Gardens headquarters in Harare. Several other private entities have also invested or plan to invest in solar power.
The investments in solar by Old Mutual come as more and more Zimbabwean companies areturning to solar energy for power supplies.
Zimplats, the Zimbabwean unit of Impala Platinum (Implats), plans to build two solar power plants with generation capacity of 185 MW to power its operations.-The Herald
