ZIMBABWE Law and Practice Contributed by: Nikita Madya and Chantele Sibanda, Wintertons
of IPPs easier, reduce licensing fees for renewable energy technology projects, and remove licensing fees for projects under 10 MW. As part of the initiative, the government introduced support for IPPs in the form of the Government Project Support Agreement (GPSA). This is a sovereign guarantee tool designed to de- risk private Independent Power Producer (IPP) invest- ments. In Zimbabwe, the GPSA supports renewable energy by securing cost-reflective tariffs, guarantee- ing power uptake by the ZETDC, and facilitating for- eign currency convertibility to repatriate profits. Zimbabwe’s energy sector is set for a significant regu- latory shift following Cabinet approval of eight new statutory instruments and regulations that collectively modernise the legal framework governing generation, transmission, consumption, exports, solar products, appliance efficiency, own-use generation and elec- tric vehicle charging infrastructure. In practical terms, these measures are likely to impose stricter compli- ance obligations across the market while improving legal certainty for investors, consumers and operators. The new framework should strengthen consumer pro- tection through enforceable solar product and installa- tion standards and appliance labelling rules, promote energy efficiency through mandatory management and auditing requirements, and create clearer path- ways for private capital to participate in backbone transmission infrastructure and large-scale own-con- sumption projects. At the same time, the introduction of electricity export controls and EV charging safety standards signals a more sophisticated and forward- looking approach to market regulation. If effectively implemented, the reforms are likely to support market formalisation, improve investment confidence, reduce the prevalence of substandard products and unregu- lated activity, and better position Zimbabwe to expand generation capacity, facilitate regional electricity trade, and accommodate emerging technologies. However, the ultimate impact will depend heavily on the capac- ity of the relevant regulators to enforce the new regime consistently and credibly. 1.8 Unique Aspects of the Power Industry Due to prolonged power shortages, most companies and organisations are investing significantly in their own captive energy generation capacities. There are
now more than 44 captive energy generators, with more expected ahead.
2. Market Structure, Supply and Pricing 2.1 The Wholesale Electricity Market
The principal law that governs the entire electricity market is the Electricity Act (Chapter 13:19), together with the ERA Act (Chapter 13:23). Owing to the virtual monopoly of the ZESA Holdings entities, the wholesale market is virtually non-existent at present. In its National Energy Policy, the govern- ment intimated a desire to unbundle the transmis - sion and distribution business units so as to create a bulk supply market that will facilitate and support IPP investments and serve as a basis for the transition to Imports and exports are permissible in the SADC and regions of the Common Market for Eastern and South- ern Africa (COMESA). Power imports and exports are facilitated through SAPP. Section 4 (1)(d) of the ERA Act provides that one of the functions of ZERA is to promote co-ordination and integration in the import, export and pooling of energy from any energy source (renewable or non-renewa- ble) in the SADC and COMESA regions. A new law is expected, whose principles have been approved by the Cabinet, which would regulate the export of electricity. 2.3 Supply Mix of Electricity Zimbabwe relies mostly on the main hydropower sta- tion at Kariba and the coal-fired Hwange Thermal Power Station. As of 2 July 2026, the peak mix of the total 1,500 MW electricity supply breaks down as follows: • hydro: 34.67%; • thermal: 62.80%; and • IPPs: 2.53%. a more competitive wholesale market. 2.2 Electricity Imports and Exports
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