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The Zimbabwe renewable energy market is expected to register a CAGR of greater than 4% during the forecast period of 2021 – 2026. Due to the COVID-19 pandemic, the country, in 2020, witnessed a frequent disturbance in the supply chain. With COVID-19 spread, the country-imposed lockdown and restrictions in several phases, which has affected the renewable energy business in the country. Lockdown imposed shutdown manufacturing units in the Zimbabwe and trade across the international borders. Thus, such a situation limits the country to produce and procure renewable technology components from foreign nations. However, Zimbabwe's overall energy demand has declined by 25% since its lockdown on 30th March 2020. The market is expected to revive during the latter half of the forecast period. Factors such as supportive government policies for renewable energy deployment and upcoming projects covering solar and hydropower are expected to drive the Zimbabwe renewable energy market during the forecast period. Despite Zimbabwe’s abundant potential for renewable power, the country is embarking on building coal power developments funded by private Chinese companies. This factor is expected to hinder the market studied.
- Hydropower segment is expected to witness significant growth during the forecast period, owing to the country's increasing hydropower capacity additions. With government support towards upcoming hydropower projects like Batoka Gorge hydropower project, this trend is expected to continue in the coming years.
- Solving intermittency problems by using energy storage systems are likely to provide huge opportunities for the market studied.
- Favorable government policies for renewable energy deployment and upcoming renewable projects are expected to drive the Zimbabwe renewable energy market during the forecast period.
Scope of the Report
The Zimbabwe renewable energy market report includes:
Key Market Trends
Hydropower Source to Witness Significant Growth
- With rapid economic development and insufficient energy supply, hydropower plays a bigger role and has immense potential to cater to the energy demand in Zimbabwe. According to International Hydropower Association (IHA), in 2020, the installed hydropower capacity in Zimbabwe was 1,091 MW which increased by approximately 16% as compared to 2017 (941 MW).
- A significant portion of Zimbabwe's hope for hydropower lies along the Zambezi river. The country, since 2018, meets approximately 80% of its hydropower demands from the Kariba South Bank power station on the Zambezi river. However, the main obstacles in achieving stable hydropower production includes the underdeveloped electrical grid of the country, lack of funding for the maintenance and building of more hydropower stations, and volatile weather conditions from climate change.
- Moreover, Rusitu Hydro, a mini hydro plant of 750 kW operated privately sells power to the state-owned company, Zimbabwe Electricity Supply Authority Holdings (ZESA). The government is also planning to add a further 5 MW of small-hydro. As of 2020, about 8 small-hydro plants were installed, ranging from 3 kW to over 700 kW. However, the total potential of small-hydro in Zimbabwe is estimated at 120 MW. Gairezi, which is located in the Nyanga district is particularly promising, with an estimate 30 MW of potential capacity.
- Additionally, the 2,400 MW Batoka Gorge hydropower project, jointly owned by Zambia and Zimbabwe, is likely to begin construction in 2021 and is expected to generate more than 10,000 GWh a year on completion. Investment of the project is estimated to be around USD 4.5 billion and is likely to generate a revenue of more than USD 750 million annually, thus enhancing the GDP of Zimbabwe and Zambia. Therfore, the share of hydropower generation is expected to be on the positive side during the forecast period.
- Hence, based on the above-mentioned factors, Hydropower segment is expected to witness significant growth in Zimbabwe renewable energy market during the forecast period.
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Favorable Government Policies and Upcoming Renewable Projects Driving the Market Demand
- Zimbabwe is one of the fastest-growing energy markets in Africa. The country has enormous potential for electricity generation from various renewable energy sources such as solar, hydro and bio-energy. As of 2020, over 41.09% of population have direct access to electricity in Zimbabwe, out of which, about 19% of them have access to electricity in rural areas when compared to urban areas.
- The country has set out on an ambitious target of increasing its renewable energy capacity. The government, in 2019, has put forward a National Renewable Energy Policy (NREP), which aims to have 16.5% of the total generation capacity (excluding large hydro) from renewable sources by 2025 and 26.5% by 2030. The policy also aims to 33% reduction in green house carbon emissions by 2030 and 20% ethanol blending ratio by 2030. Such policy initiatives are likely to the drive the renewable energy market in Zimbabwe during the forecast period.
- The NREP also aims to have installed 250,000 solar geysers by 2030 in new and ols buildings, to increase the use of institutional and domestic biogas digesters, to deploy the use of solar mini grids, off-grid solar solutions and solar water pumping solutions, and generally to increase the use of renewable technologies. Moreover, the policy aim is to increase the electricity penetration rates in both rural and urban areas.
- Additionally, in January 2020, the government of Zimbabwe has decided to implement a proper independent power producer (IPP) development plan for large scale PV, with the help of the World Bank i.e., about 39 solar power projects with a total generation capacity of 1,050 MW have secured government approval in Zimbabwe for the development of electricity generation through solar energy, thus, driving the demand for renewable energy market in the coming years.
- Furthermore, the 2,400 MW Batoka Gorge hydropower project, jointly owned by Zambia and Zimbabwe, is likely to begin construction in 2021 and is expected to generate more than 10,000 GWh a year on completion. Investment of the project is estimated to be around USD 4.5 billion and is likely to generate a revenue of more than USD 750 million annually, thus enhancing the GDP of Zimbabwe and Zambia.
- Therefore, based on the above-mentioned factors, upcoming projects and supportive government initiatives are expected to drive the renewable energy market in Zimbabwe during the forecast period.
The Zimbabwe renewable energy market is consolidated. Some of the major players include Global Solar (Pvt) Ltd, Invest Solar Africa, Cool Solar Africa, Nyangani Renewable Energy (Pvt) Ltd, and Sunbird Bioenergy Africa Limited.
- As of July 2021, seven solar projects in Zimbabwe with a total capacity of 66.6 MW are expected to become operational by the end of 2021, according to the Zimbabwe Energy Regulatory Authority (ZERA). The seven projects, which are in an advanced stage of construction, were included in a list of licensed independent power producers (IPP) released by the regulator.
- In October 2020, French renewable energy firm Voltalia has been awarded the contract to build a 12MW solar power plant at Blanket Mine in Zimbabwe. Caledonia Mining Corporation Plc, Blanket Mine’s holding company, successfully raised USD 13-million in September 2020, to fund the project which is expected to supply 27% of the mine’s total electricity demand.
Table of Contents
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.2 Renewable Energy Mix, 2020
4.3 Renewable Energy Installed Capacity and Forecast in MW, till 2026
4.4 Government Policies and Regulations
4.5 Recent Trends and Developments
4.6 Market Dynamics
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
4.9 Assessment of COVID-19 Impact on the Industry
5. MARKET SEGMENTATION
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Global Solar (Pvt) Ltd
6.3.2 Invest Solar Africa
6.3.3 Cool Solar Africa
6.3.4 Nyangani Renewable Energy (Pvt) Ltd
6.3.5 Sunbird Bioenergy Africa Limited
6.3.6 Green Fuel (Pvt) Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Zimbabwe Renewable Energy Market market is studied from 2019 - 2026.
What is the growth rate of Zimbabwe Renewable Energy Market?
The Zimbabwe Renewable Energy Market is growing at a CAGR of >4% over the next 5 years.
Who are the key players in Zimbabwe Renewable Energy Market?
Global Solar (Pvt) Ltd, Cool Solar Africa, Nyangani Renewable Energy (Pvt) Ltd, Invest Solar Africa, Sunbird Bioenergy Africa Limited are the major companies operating in Zimbabwe Renewable Energy Market.