The Zimbabwe Energy Regulatory Authority (ZERA) is set to introduce a competitive bidding system for electricity procurement projects.
The development is designed to facilitate a move away from unsolicited bids, otherwise known as proposals made by companies without invitation, replacing with a tender system.
Speaking at the Zimbabwe Economic Development Conference in September, ZERA Chief Executive Officer, Edington Mazambani, revealed that there had been a surge in unsolicited bids. His speech, available on the authority’s social media channels, added that competitive bidding procedures are expected to begin by next year, in order to give the industry enough time to adjust.
“The shift from unsolicited bids will ensure that we have transparency, ensure cost efficiency and is expected to bring down electricity tariffs, and we will have high-quality projects,” Mazambani said. “We have a lot of people who are coming to be licenced for speculative reasons, and hold on to a licence and sort of brandish it to raise funding. It will reinforce the government’s commitment to a fair investment climate.”
Mazambani pledged that the authority will come up with a regulatory framework for competitive bidding procedures that welcomes both local and international investors, gives a reasonable return to these investors and rewards those that are efficient operators.
ZERA's announcement follows policy changes approved by the government of Zimbabwe earlier in September that will open up the country's electricity retail sector to private players. From early next year, private companies will begin to participate in the sale and distribution of electricity, a role previously held exclusively by the state-owned Zimbabwe Electricity Transmission and Distribution Company (ZEDTC).
Under the plans, ZEDTC will retain its role in the transmission of electricity but will also provide substations and transmission lines for private use. Meanwhile, ZERA has been tasked with ensuring frameworks are in place to quickly roll out private sector participation, Mazambani said during his speech.
Zimbabwe currently has 203 MW of operational solar capacity, according to figures compiled by the Africa Solar Industry Association (AFSIA). In March 2024, the government of Zimbabwe issued licenses for 116 MW of solar projects.
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