Image: Zimbabwe Mail
Zimbabwe’s Energy Regulatory Authority (ZERA) has announced plans to launch a competitive bidding system for electricity generation projects starting in 2026, marking a significant policy shift away from unsolicited bids—proposals submitted without formal government invitation.
Speaking at the Zimbabwe Economic Development Conference in September, ZERA Chief Executive Officer Edington Mazambani said the move aims to enhance transparency, improve cost efficiency, and attract credible investors.
“The shift from unsolicited bids will ensure transparency, cost efficiency, and is expected to bring down electricity tariffs while ensuring high-quality projects,” Mazambani said. “We have a lot of people who come to be licensed for speculative reasons and hold onto a licence to raise funding. This change reinforces the government’s commitment to a fair investment climate.”
Mazambani noted that competitive bidding procedures are expected to begin next year to give the industry sufficient time to adjust. He added that ZERA will establish a regulatory framework to support the new system—one that welcomes both local and international investors, ensures reasonable returns, and rewards operational efficiency.
The announcement comes shortly after the Government of Zimbabwe approved policy reforms to liberalize the country’s electricity retail market, allowing private companies to participate in the sale and distribution of power—a role previously held exclusively by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).
Under the new framework, ZETDC will continue managing electricity transmission and provide substations and transmission lines for private use, while ZERA oversees the rollout of private sector participation.
According to data from the Africa Solar Industry Association (AFSIA), Zimbabwe currently has 203 MW of operational solar capacity. Earlier this year, in March 2024, the government issued new licenses for 116 MW of solar projects, signaling growing momentum toward renewable energy development.
