Tapiwanashe Mangwiro
Senior Business Reporter
The solar energy deal between Grid Africa and Chinese technology giant Huawei has been hailed by industry experts as a transformative step for Zimbabwe’s mining sector and the broader economy.
The agreement, which involves the construction of a 72 megawatts (MW) of solar power plant exclusively targeting mining companies, is expected to reduce operational costs, enhance energy efficiency and relieve pressure on the country’s overstretched national grid.
Power supply is one of the major operational constraints weighing on the mining industry, a key sector of the economy that generates more than 80 percent of the country’s exports.
The sector also accounts for 70 percent of foreign direct investment, 19 percent of Government revenues and 3 percent of formal direct employment. Engineers and analysts commended the initiative, emphasising its potential to revolutionise power supply in the mining sector and promote sustainable economic growth.
Engineer Shaun Chipangura, a solar energy expert, believes that this project is pivotal in slashing electricity costs for mining operations, which have long relied on costly diesel generators.
“Traditionally, mining companies have been paying around US$0,14 per kilowatt-hour (kWh) when using diesel generators,” Eng. Chipangura explained. With solar energy, this cost will drop significantly to just US$0.09 per kWh. This reduction represents a close to 50 percent cut in energy expenses, which will improve profit margins and operational efficiency.”
Eng Chipangura highlighted how the switch to solar would reduce reliance on expensive fossil fuel energy, which has historically been a huge burden for companies’ dependent on generator power.
“Diesel prices fluctuate with international markets, but solar is a much more stable and predictable energy source. Once the infrastructure is in place, companies can reap the benefits for decades,” he said.
For Zimbabwe’s mining industry, which has been severely impacted by power shortages, this shift is a welcome development.
The new solar infrastructure is expected to stabilise power supply to mining operations, ensuring operational continuity and bolstering productivity.
More importantly, the move to solar will lessen the demand on Zimbabwe’s already strained national grid, freeing up electricity for other critical sectors.
Eng Malcom Skonkomwe, another advocate for renewable energy, emphasised the long-term benefits of solar power, describing it as the future of energy.
“Solar is not only about reducing costs, it is about sustainability and efficiency. Unlike traditional fossil fuels, solar energy is infinite and can be harnessed in even the most remote locations. It makes sense for Zimbabwe, a country with abundant sunlight, to tap into this resource to power industries like mining,” he noted.
Eng Skonkomwe added that solar technology has made significant strides in recent years, improving efficiency and reducing the space required for solar farms.
“With modern solar panels, we can generate more electricity with fewer resources, and battery storage solutions have evolved to store power effectively for use when the sun isn’t shining,” he explained. He believes this project is just the beginning of a broader trend toward renewable energy adoption across Zimbabwe and Africa. Economic analysts also lauded the Grid Africa-Huawei deal for its potential to free up electricity for other key industries.
Namatai Maeresera, an economic analyst, said that solar projects like the one between Grid Africa and Huawei had a multiplier effect on the economy.
“Through shifting mining operations to solar power, the national grid will have more capacity to supply power to other sectors, including manufacturing and agriculture, which are critical for job creation and economic growth,” he stated.
Mr Maeresera pointed out that the reduction in reliance on imported diesel will also have a positive impact on Zimbabwe’s foreign currency reserves.
“Zimbabwe spends a lot of foreign currency importing diesel for generators. By reducing this need, we can save foreign currency, which can be redirected toward other essential imports or invested in expanding renewable energy infrastructure,” he added.
He further highlighted the potential for Zimbabwe to become an energy exporter.
“With investments in renewable energy, particularly solar, there is a possibility that Zimbabwe could export electricity to neighbouring countries, earning much-needed foreign currency.
“This is a strategic move that could place Zimbabwe as a regional energy player,” Mr Maeresera concluded.
This deal between Grid Africa and Huawei comes as a much-needed solution as it not only provides an immediate response to the mining sector’s energy needs but also opens the door to a more sustainable and economically viable energy future for the country.