Zimbabwe’s energy regulator has announced plans to introduce a competitive bidding system for electricity generation projects starting in 2026. The move coincides with government efforts to liberalise the electricity retail market, allowing private companies to sell and distribute power from next year.
The Zimbabwe Energy Regulatory Authority (ZERA) said the new procurement model will replace unsolicited bids — proposals submitted by companies without official invitation — with a transparent tender process.
Speaking at the Zimbabwe Economic Development Conference in September, ZERA Chief Executive Officer Edington Mazambani revealed that the number of unsolicited bids had risen sharply in recent years. He said the shift to competitive bidding is intended to improve transparency, ensure cost efficiency, and ultimately lower electricity tariffs.
“The shift from unsolicited bids will ensure transparency, cost efficiency, and is expected to reduce electricity tariffs while improving project quality,” Mazambani said. “We have seen many applicants seeking licences for speculative purposes, often using them to secure funding rather than develop projects. The new system will reinforce the government’s commitment to a fair and transparent investment climate.”
Mazambani added that ZERA is developing a regulatory framework to guide the competitive bidding process. The framework will encourage participation from both local and international investors, ensuring reasonable returns while rewarding efficient operators.
The announcement follows recent government policy reforms that will open Zimbabwe’s electricity retail sector to private players for the first time. Beginning next year, private companies will be permitted to sell and distribute electricity — a function previously held exclusively by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).
Under the new arrangement, ZETDC will continue to manage electricity transmission infrastructure but will also provide substations and transmission lines for private sector use. ZERA has been tasked with ensuring the necessary frameworks are in place to enable swift private sector participation, Mazambani said.
According to data from the Africa Solar Industry Association (AFSIA), Zimbabwe currently has 203 MW of operational solar capacity. In March 2024, the government issued licences for an additional 116 MW of solar projects, signalling growing investment interest in the country’s renewable energy sector.
