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Zimbabwe Secures $455 Million Deal to Expand Power Supply Through Hwange Plant Overhaul

Zimbabwe is set to boost its national electricity supply by 400 megawatts (MW) following a major refurbishment of ageing units at the Hwange thermal power station, the country’s largest coal-fired plant, according to the state-owned power utility.

The upgrade will be carried out under a 15-year concession agreement between the Zimbabwe Electricity Supply Authority (ZESA) and an Africa-focused subsidiary of India’s Jindal Steel. The deal, valued at about $455 million, was approved by cabinet on September 17 and formally signed in December, ZESA acting chief executive officer Cletus Nyachowe said.

Under the agreement, Jindal will rehabilitate several older generating units at Hwange, with the additional 400 MW expected to come online within 48 months. Rehabilitation work is scheduled to begin in the first quarter of 2026.

Nyachowe said the project would significantly improve electricity availability in the country, which currently produces only about half of its estimated 2,000 MW power demand. Persistent generation shortfalls have resulted in prolonged power outages that have affected households, mining, agriculture, and manufacturing.

Hwange has an installed capacity of 1,520 MW and remains central to Zimbabwe’s power generation strategy. In 2023, two new units were commissioned at the plant, adding 600 MW to the grid. However, several older units constructed in the 1980s are now operating at roughly one-third of their intended capacity due to frequent breakdowns and years of underinvestment.

Zimbabwe’s power challenges have also been compounded by reduced output from the Kariba hydropower station, which relies on Lake Kariba. Although Kariba completed a 300 MW expansion in 2018, raising its capacity to 1,050 MW, electricity generation has declined in recent years as climate change-induced droughts have lowered water levels.

The Hwange refurbishment forms part of broader efforts by Zimbabwe to stabilize electricity supply, reduce reliance on power imports, and support economic recovery by restoring dependable energy production.

Source: Africa Publicity

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