The Zimbabwe Energy Regulatory Authority (ZERA) has released its 2024 Annual Report, detailing a year of significant strides, persistent challenges, and a clear vision for a sustainable energy future. The report underscores ZERA’s commitment to regulating the energy sector for the benefit of both consumers and suppliers, aiming for universal access to sustainable energy by 2030.
In 2024, ZERA operated under the guiding theme of “Minigrids – Increased Access to Energy,” focusing on initiatives to enhance energy accessibility, particularly in remote areas. A notable achievement was the commissioning of a 200KW mini-grid in Hakwata, Chipinge District, alongside other smaller mini-grids nationwide, demonstrating the potential of this model for widespread energy access.
Key Achievements and Performance Highlights:
The year 2024 saw a robust performance across various energy sub-sectors. Energy supplied increased by 9.7% to 11,082 GWh, up from 10,096 GWh in 2023. Independent Power Producers (IPPs) played a crucial role, supplying nearly 453.7 GWh, a 16% increase from 2023. ZERA licensed 17 electricity generation projects with a combined capacity of 786.08MW and three electricity retail supply companies. The Authority also facilitated the growth of captive power producers, particularly for solar systems used by companies for their own consumption, aiming to bring stability to the electricity sub-sector.
In the petroleum sector, the number of licensed retail operators grew to 996 from 936 in 2023, reflecting a thriving industry and healthy competition. Fuel supply remained generally stable throughout the year. ZERA graded 339 retail service stations for compliance with technical and customer service standards, with 3% receiving 5-star ratings, 50% receiving 3-star ratings, and 47% receiving 1-star ratings.
The Liquefied Petroleum Gas (LPG) sub-sector also experienced increased consumption, with 77 million kgs of LPG imported in 2024, compared to 66 million kgs in 2023. Compliance rates at licensed LPG retail sites stood at 93.7%.
Regulatory and Financial Overview:
ZERA continued its mandate to regulate the energy sector fairly, transparently, efficiently, and cost-effectively. The Authority’s total assets as of December 31, 2024, stood at ZWG532,758,818, with a total income of ZWG329,289,006. A surplus of ZWG27,358,865 from electricity receipts will be remitted to the Rural Electrification Fund, as stipulated by the Energy Regulatory Act.
The year also saw significant efforts in environmental compliance and energy efficiency, with 4,679 energy efficiency inspections conducted on companies in Zimbabwe. ZERA also ran workshops and public outreach events to raise awareness on energy-efficient practices.
Challenges and the Path Forward:
Despite these successes, challenges persist. Electricity supply remained subdued, with an average capacity of 1,300MW against a demand of 1,700MW, primarily due to reduced water levels in the Kariba Dam. In the petroleum sector, 44 sites were found with non-compliant fuel, with 38 cases attributed to suspected adulteration. All offending sites were closed for investigation and prosecution. The increase in accidents due to mishandling of LPG and non-observance of safety procedures was also a concern.
The report also highlighted an increase in consumer complaints, with 92 complaints received in 2024, up from 59 in 2023, and 88% of them resolved. A worrying trend observed was that 33% of complaints were related to fuel contamination cases.
ZERA is addressing these issues by revising regulations, including those for solar products and installations to curb substandard products and poor workmanship, and the Electricity Public Safety regulation to introduce registration of electricity service companies and personnel. The Net-Metering regulation was also improved to allow for virtual net-metering and monetisation of excess credits. The Authority plans to procure a Gas Chromatography machine to identify substances used for fuel adulteration.
Looking ahead, ZERA remains committed to its vision of a sustainable, efficient, and inclusive energy sector. The Authority plans to continue engaging with stakeholders, including government, industry players, and civil society, to ensure that its regulatory framework effectively addresses issues of energy access, affordability, and reliability, which are vital for Zimbabwe’s economic development and social welfare. The opening of a new regional office in Gweru signifies ZERA’s commitment to devolution and expanding its reach across all provinces.
The ZERA 2024 Annual Report serves as a comprehensive overview of the Authority’s dedication to “Empowering a Sustainable Energy Future for Zimbabwe”.