Centragrid’s 25MW Solar PV Plant: A Solution to Zimbabwe’s Electricity Rationing Challenges

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In August, the Southern African Development Community (SADC) held its 44th summit in Harare, Zimbabwe, with leaders from 13 of the 16 member nations in attendance. The Zimbabwean government invested nearly $200 million in improving numerous roads in the capital city as part of the preparations for this summit. This road rehabilitation project was funded locally and was completed in approximately six months, demonstrating a significant effort to enhance infrastructure.

Focusing on the $200 million spent on road improvements, it’s worth noting that this amount could also support another locally-funded initiative—a 25MWp solar photovoltaic (PV) plant located just outside Harare, which has started supplying power to the grid. Centragrid, an independent power producer, has successfully developed this solar power facility in Nyabira, situated 35 kilometers along the Harare-Chirundu highway. The project benefited from investments from local pension funds, including NSSA and the investment arm of Old Mutual, and it currently ranks as the second-largest utility-scale solar plant in Zimbabwe.

As Zimbabwe grapples with one of its most severe electricity rationing programs, commonly referred to as load-shedding, the expansion of solar power plants like the Centragrid facility can significantly enhance the country’s energy supply in a relatively short timeframe. Many residents face power outages from about 5 a.m. to 11 p.m. daily, a situation exacerbated by prolonged droughts and aging coal power facilities, which have severely hindered electricity generation.

Zimbabwe and Zambia share the Kariba Dam, constructed between 1955 and 1959 and spanning about 280 kilometers, with a water capacity of approximately 185 cubic kilometers. The hydropower plant on the Zimbabwean side, known as Kariba South, has an installed capacity of 1,050 MW, while Kariba North in Zambia has an installed capacity of 1,080 MW. Together, the dam’s total capacity reaches 2,130 MW, making it not only a crucial power source but also a major tourist attraction, second only to Victoria Falls. Additionally, Lake Kariba serves as the world’s most productive reservoir fishery, providing jobs in the artisanal fishing sector.

Unfortunately, a significant drought currently plagues various countries in southern Africa, with some reports claiming it to be the worst in over a century. These increasingly frequent and severe droughts have caused water levels at the Kariba Dam to drop significantly, limiting the Zimbabwe Power Company (ZPC) to generating approximately 200 MW from its 1,050 MW capacity.

Looking back at how a locally-funded approach could mitigate the electricity shortfall more rapidly, I propose a hybrid model that combines the road rehabilitation funding method with the successful collaborative model employed for the Centragrid solar PV plant.

Constructing solar plants of this scale can be accomplished swiftly, often within a year. However, a significant obstacle faced by independent power producers (IPPs) in Zimbabwe has been securing sufficient funding. Due to various challenges, including the country’s “risk profile,” acquiring foreign financing has been difficult for over a decade. Thus, a locally-funded model—similar to the approach taken with the road project and leveraging insights from the Centragrid solar plant’s development—could greatly benefit local IPPs.

If we revisit the $200 million allocated for road upgrades, the current pricing landscape makes solar energy attractive due to a substantial decrease in solar panel costs. A 25MWp solar PV plant can now likely be constructed for around $20 million, covering all development, permitting, and construction expenses until commercial operations begin. With $20 million per facility, the $200 million dedicated to road repairs could fund ten 25MWp solar PV plants in under a year, contributing 250MWp of solar energy to Zimbabwe’s grid in a remarkably short time.

Given that Zimbabwe comprises ten provinces, building one solar plant in each could facilitate easier grid integration and distribute energy resources equitably across the nation. By adding four 25MW plants in each province, Zimbabwe could achieve 1GWp of reliable solar capacity within a short timeframe. Stretching this plan over four years, with one plant constructed per province each year, could be funded by combining the government’s resources (as demonstrated by the road project) with local pension and investment funds (as shown in Centragrid’s initiative).

Finding already planned solar and hydro projects ready for funding shouldn’t be an issue, as multiple gigawatt-scale projects have been outlined in Zimbabwe. Naturally, these solar PV initiatives would need to be part of a broader and diversified energy strategy to bolster the country’s generation capacity. Other sectors, particularly large mining and smelting companies, are examining options for natural gas power plants and other coal alternatives.

Zimbabwe’s mining industry estimates losses could reach $500 million by 2025 due to ongoing power supply issues. As large mining and smelting companies consider coal and gas power options, incorporating 40 of these 25MWp solar PV plants across the nation could substantially enhance Zimbabwe’s overall energy mix within four years, assuming a robust plan is implemented leveraging the previous experiences. This strategy would also contribute to increasing the share of clean renewable energy in a country predominantly reliant on coal. Zimbabwe requires faster, more cost-effective electricity generation solutions, and these 40 solar PV plants could facilitate that transition. All that is needed is the commitment to act upon this plan. The framework for success is already established, so it’s time to replicate these learnings and act decisively. It is hoped that responsible authorities will consider this proposal.

Images courtesy of Remeredzai and Centragrid