Power demand to increase, says Chinamasa

Published: 31 August 2017

The country's energy crisis will intensify as the economy recovers, leading to industrialisation, which will put pressure on power supplies, Finance and Economic Development Minister Patrick Chinamasa has warned.

Chinamasa said economic recovery should be complimented with robust development of power generation in order to avoid blackouts.

He said at the moment, the three strategic sectors, namely agriculture, mining and manufacturing, were operating at sub-optimal levels, resulting in depressed power demand.

"Our productive sectors are currently operating at sub-optimal levels. This means that the current demand for power is depressed, that is, it is less than what it should be," Chinamasa said during his keynote address at the commissioning of the Kupinga Hydro Power Station in Chipinge.

Currently, the country, whose national power demand is around 1 600 megawatts, is facing an acute power deficit of between 300 megawatts to 600 megawatts, covered by imports.

When industries revive as a result of the steady economic growth, the country risks being plunged into darkness as the power deficit will widen.

This is because the energy sector has not kept up with the pace at which the economy is growing, he said.

Chinamasa indicated that the country was already on a recovery path despite some transitory challenges.

Last year, the country's economy grew by 0,7 percent and a 3,7 percent growth projected this year.

Chinamasa said current economic trends signal an industrial revolution, which will put pressure on the country's power demand.

"As the economy grows, the demand for power follows suit. There is, therefore, need for investment in the energy sector," said Chinamasa.

He said government has put in place attractive tax incentives for investors in the energy and infrastructure sectors.
- fingaz