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The fiscal incentives extended by newly drafted Renewable Energy Policy is likely to attract Individual Power Producers (IPPs) in the renewable energy sector of Zimbabwe.

The new policy issued by the Ministry of Energy and Power Development announced tax exemptions, reduced license fee and offered robust financing measures to encourage IPPs’ participation in renewable energy sector.

The government’s announcement came in such dire situation when the entire country is battling against severe power deficit. At present, the supply of electricity in Zimbabwe is at around 1,000 MW which is less than half of its peak power requirement—2,200 MW.

The IPP’s investment in renewable energy sector is expected to address country’s domestic demand for electricity in near future. According to the policy, IPP in renewable sector of energy is estimated to contribute more than 16% of total power production by 2025. The investment estimates to generate 1 GW electricity from…