Zimbabwe has significantly increased power outages across the nation due to a sharp decline in water levels at Kariba, the world’s largest man-made reservoir. This drop is attributed to a severe dry spell, limiting the capacity for electricity generation.
In response to the water shortage, the southern African country, currently in its winter season, has extended rotational blackouts from around two hours to up to ten hours daily. This has forced many businesses to rely on generators and solar power to maintain operations.
“The stored capacity at Kariba stands at 1,050 megawatts, but we are only able to generate an average of 214 megawatts due to water rationing caused by low inflows into the lake,” said Energy Minister Edgar Moyo, as per a transcript on the parliament’s website. As of June 24, the artificial lake had only 12.46% of usable storage, down from 31.3% a year earlier, according to data from the Zambezi River Authority. “Losing over 800 megawatts significantly hampers our ability to meet the country’s power needs,” Moyo added.
The current power demand in Zimbabwe is estimated at 2,200 megawatts, while supply is at 1,206 megawatts, primarily sourced from the thermal-fired power station in Hwange, according to the Zimbabwe Power Company. The neighboring country of Zambia, which also depends on Lake Kariba for its electricity, increased its outages to 12 hours per day last month.
Analysis and Market Impact:
Zimbabwe’s increased power cuts present both challenges and opportunities for various sectors. Businesses reliant on continuous power supply are experiencing higher operational costs due to the need for alternative power sources like generators and solar energy. This situation underscores the importance of investing in sustainable energy solutions and diversifying power sources to mitigate the impact of such disruptions.
Investors could see opportunities in the renewable energy sector, particularly in solar and wind power projects, given the urgent need for reliable and sustainable energy. Companies specializing in energy storage solutions and infrastructure development could also benefit as the demand for alternative energy sources rises.
The broader economic impact includes potential slowdowns in industrial and manufacturing activities, which could affect overall economic growth. However, proactive measures and investments in alternative energy could turn this crisis into an avenue for innovation and growth in the renewable energy sector.
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