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+263 78 922 2847Danish Firm Bets Big on Zimbabwe's Solar Future, Plans 100MW Plant Amid Power Crisis
Zimbabweans have been experiencing blackouts of up to 18 hours a day, caused by regional drought affecting the Kariba Dam and years of under-investment in energy infrastructure. Denmark-based Renergy Solar plans a 100MW solar facility to help fill the gap, with CEO Mads Vestergaard Sørensen praising Zimbabwe's excellent solar potential and government support. He highlights that reliable electricity could boost the mining sector and drive economic growth, potentially transforming Zimbabwe’s economy.
Despite the promise, bankability remains a challenge. International sanctions and currency instability make financing difficult, and lenders remain cautious. Renergy is in discussions with Zimbabwean officials to determine payment methods, but the company is committed to advancing its plans. Vestergaard Sørensen believes that in five years, the energy sector in Zimbabwe will look completely different, positioning the country for a brighter, more sustainable future.
Zimbabwe's Deepening Power Crisis
The immediate cause of the severe load shedding is the regional drought that has left the Kariba Dam operating at well below full capacity. However, the crisis also reflects years of chronic under-investment in energy infrastructure, leaving the nation reliant on aging coal-fired power stations and expensive electricity imports from neighboring countries.
A Foreign Investor's Optimistic Vision
Mads Vestergaard Sørensen, CEO of Renergy Solar, believes solar power can provide a large part of the solution. "We really have great belief in Zimbabwe," he stated, noting the country's excellent conditions for generating solar power. He argues it "makes no sense" for Zimbabwe to be dependent on imported electricity when it should be a net exporter of power to the rest of Southern Africa.
Sørensen highlighted that a reliable power supply could unlock the mining sector's vast potential. A 2023 World Bank report projects that Zimbabwe's electricity demand will grow from 1,950 MW to 5,177 MW by 2030, largely driven by mining. "Imagine that economic growth," said Sørensen. "All this would just make Zimbabwe a totally different economy."
In a surprising assessment, Sørensen was effusive in his praise of the Zimbabwean government. While Renergy has faced challenges in other African countries like Kenya and Ghana, he said Zimbabwean officials have proved to be "extremely efficient" and eager to accommodate his team’s requests, believing the government "really wants to create good examples" in the energy sector.
The Major Hurdles to Investment
"Bankability is a big issue," Sørensen acknowledged. Although international sanctions are largely targeted at individuals, Zimbabwe’s status as a semi-pariah state makes international lenders reluctant to finance projects in the country. The World Bank and IMF have refused to lend to Zimbabwe for over 20 years due to unpaid arrears, making large-scale project finance a key challenge.
Another significant hurdle is the ability to remit foreign currency amid a persistent shortage of dollars. Renergy is in talks with Zimbabwean officials over how it will be paid for the electricity it generates.
"Payments in local currency would be very difficult for us to accept," Sørensen warned.
Despite the challenges, the company is determined to push ahead. "We will spend a lot of time and money on this market," said Sørensen, adding that he wants Renergy to be well-positioned for the future. He remains convinced the country will overcome its difficulties, concluding, "In five years, I think we will see a totally different Zimbabwe when you look at the energy sector."
Sona Solar Zimbabwe – Your Trusted Partner for Solar Energy Solutions
Sona Solar Zimbabwe provides premium Solar Panels, Lithium Batteries, Inverters, and complete Solar Systems for homes, businesses, and industries. We also specialize in expert Borehole Drilling Solutions and Solar-Powered Water Systems. Trust our experienced team for professional Solar installations in Harare, Marondera, Mutare, Chitungwiza, and across Zimbabwe, delivering reliable, efficient, and cost-effective renewable energy solutions.
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Sona Solar Zimbabwe
Sona Solar Zimbabwe
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Borehole Experts Zimbabwe
Borehole Experts Zimbabwe
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Harare, Zimbabwe.
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