Power utility company the Zimbabwe Electricity Supply Authority (ZESA) is turning to the regional electricity market to guard against possible shortages as the government seeks to improve the country’s unreliable power system.
Speaking during a post cabinet press briefing, Energy and Power Development Minister July Moyo said ZESA was using the Southern African Power Pool’s day-ahead market to buy electricity whenever domestic generation falls short of demand.
“If there is a shortfall of whatever size, you go in the market in the region, and there are places where there is excess, and that excess can be mopped up on a daily basis by those who have shortages,” Moyo said.
He said the arrangement, together with the country’s current electricity tariff structure was giving Zesa greater flexibility to respond to potential shortages.
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Zimbabwe has recently gone for a period without load shedding with supply exceeding demand according to the minister.
“That’s why we have no load shedding, and we want to make sure that this can continue,” Moyo said.
However, the government wants Zesa to address longstanding inefficiencies across the electricity supply chain including losses during generation, transmission and distribution.
Moyo said Cabinet had instructed the power utility to improve its performance and set out a clear investment plan for the sector.
ZESA is expected to submit a detailed Strategic Systems Development Plan within the next 100 days, outlining investments needed in generation, transmission, distribution and retail services.
“In the next 100 days, one month, ZESA will present another detailed paper on the Strategic Systems Development Plan, which says what are you going to invest in generation, in transmission, in distribution, as well as in retail,” he said.
The government is also seeking to increase private-sector participation in electricity generation as part of wider efforts to boost supply.
The Zimbabwe Energy Regulatory Authority (ZERA) is working on a regulatory framework to allow smaller independent power producers to enter the market.
Mr Moyo said several investors had already expressed interest.
“The private sector should come and be involved and become mini-ZESAs, and that the Zimbabwe Regulatory Authority is working on the details and there are a number of people who have expressed the wish to come and invest in this area,” he said.
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The reforms are intended to increase generation capacity while reducing pressure on ZESA and improving the reliability of electricity supplies.
Cabinet approved the measures presented by the Energy Ministry and called for the electricity reform and restructuring programme to be accelerated.