Private Firms Allowed to Sell Electricity to Consumers

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Private Firms Allowed to Sell Electricity to Consumers
Private Firms Allowed to Sell Electricity to Consumers

Africa-Press – Zimbabwe. The government, through the Zimbabwe Energy Regulatory Authority (ZERA), has taken a big step toward opening up the power sector by allowing private companies to sell electricity directly to consumers.

Under the new system, firms can get licences to buy electricity from suppliers like ZESA or independent producers, including solar companies, and then sell it to households or businesses in specific areas.

Explaining the plan to business leaders recently, ZERA chief executive Edington Mazambani said:

“For instance, you can adopt Cowdray Park and reticulate the whole locality, which is in the upwards of 30,000 (homes).

“You connect them and get the bulk supply of electricity, either from the utility or a supplier of your own choice, distribute power within the locality, and collect revenue.”

He said the plan is aimed at attracting private investment into secondary power distribution, especially in suburbs that are underserved or still off the grid.

The move is expected to speed up electrification, lower costs for the government, and bring more renewable energy into the national grid.

Earlier this month, ZESA acting managing director Abel Gurupira told an investor conference that the utility had identified nearly 400 “dark cities”, fully developed suburbs and commercial areas that remain off-grid, where such partnerships could be rolled out.

The new framework, approved by cabinet, will let ZERA license companies that can prove they have the financial and technical ability to build and manage these distribution networks.

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