Govt opens electricity retail space to the private sector

The government has opened the electricity retail sector to private companies, marking a significant policy shift. Previously cautious due to the sector’s security concerns, the government now aims to boost electricity generation amid rising investor demand, straining existing infrastructure.

The Zimbabwe Energy Regulatory Authority (ZERA) and Zimbabwe Electricity Distribution and Transmission Company (ZETDC) have invited public and private stakeholders to invest in electricity distribution and retail, aiming for universal electricity access by 2030.

Under Section 44 of the Electricity Act, private firms with proven technical and financial capacity will be licensed to distribute and retail electricity in underserved areas, complementing ZETDC’s efforts. Licensees must coordinate and collaborate with ZETDC and comply with national laws and standards.

This model promises improved electricity supply, expanded access, and enhanced service delivery, aligning with Zimbabwe’s Vision 2030 goal of leaving no place and no one behind. It also integrates renewable energy into the national grid, ensuring a sustainable electricity supply for the future.

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