Harare Correspondent
Grid Africa, an energy company, has reached a significant agreement with a consortium of miners in Zimbabwe to develop 200 megawatts (MW) of solar power for their operations, with an estimated investment of US$180 million.
This initiative comes at a crucial time when Zimbabwean miners are seeking alternative energy sources due to ongoing challenges with the national power utility, Zesa Holdings, which has struggled to meet the growing demand for electricity.
Impact of Power Shortages
The Chamber of Mines of Zimbabwe (CoMZ) recently reported that power blackouts have resulted in a staggering US$500 million revenue loss for mining companies in the country.
In light of this, Grid Africa’s CEO, Norman Moyo, emphasized the urgency of the project, stating,
“Today, in Zimbabwe, we are focusing on developing 200MW for the mines.”
He explained that the project will be executed in phases, starting with smaller, manageable installations, which he believes is a more efficient approach than constructing a single large facility.
Collaboration with Africa GreenCo Group
During the Zimbabwe-Zambia Energy Projects Summit held in Victoria Falls, Grid Africa also signed a landmark agreement with Africa GreenCo Group to generate an additional 100MW of electricity for the mines.
Under this partnership, Grid Africa will produce the power, while Africa GreenCo will manage its delivery to the mining operations. Moyo noted,
“Mines need more affordable power for them to continue to be viable and profitable.”
Financial and Operational Details
The 100MW project is expected to cost around US$70 million and will be located in the Midlands Province, specifically around Kwekwe, near Zimasco. This project is part of a broader strategy to address the high costs of electricity, which have become a significant burden for miners, accounting for about 20% of their operational budgets. The CoMZ highlighted that electricity tariffs increased by 40% last year, exacerbating the financial strain on mining companies.
Future Prospects
Grid Africa has also partnered with Huawei to develop 72MW of tailored solar power infrastructure for the mining sector in Zimbabwe.
With eight years of operational experience in the country, Grid Africa has successfully developed over 60MW of power and has expanded its operations to Kenya, Zambia, and South Africa.
As the demand for reliable and affordable energy continues to grow, these initiatives by Grid Africa and its partners represent a crucial step towards enhancing the sustainability and profitability of Zimbabwe’s mining sector.
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