ZESA HOLDINGS STRATEGIC RESPONSE TO
AGENDAFOR VISION 2030
ENERGY SECURITY INVESTMENTS:
THE NEED TO ADDRESS THE POWER PROJECT INVESTMENT RISK MATRIX
STATUS OF MITIGATION MEASURES
CAPACITY RISK PPA Cost Reflective Tariff Granted (December 2023) (YES)
CURRENCY RISK PPA+GIA Currency Guarantees (Still Pending On Currency Risk) (NO)
IMPLEMENTATION RISK GIA (GPSA) Current GIA’s Are Not Bankable (Still Pending On Currency Risk) (NO)
CAPACITY AND CURRENCY RISKS
RETAIL TARIFF TREND ANALYSIS 2019-2023
THE VISION 2030:
NDS1 TARGET: TOTAL ENERGY SECURITY
TO END LOAD SHEDDING AND POWER IMPORTS BY DECEMBER 2025
NEW POWER GENERATION PROJECTS UNDER CONSTRUCTION
DEVELOPERS
THE VISION 2030:
NDS1 TARGET: TOTAL ENERGY SECURITY
TO END LOAD SHEDDING AND POWER IMPORTS BY DECEMBER 2025 NEW
GENERATION PROJECTS UNDER CONSTRUCTION:
THE VISION 2030:
NDS1 TARGET: TOTAL ENERGY SECURITY
TO END LOAD SHEDDING AND POWER IMPORTS BY DECEMBER 2025
NEW POWER GENERATION PROJECTS UNDER CONSTRUCTION:
DEVELOPERS (IPP+CPP)
Kariba Floating Solar (IPP) Project
Hwange
SUMMARY OF CONSTRUCTION PROGRESS
Total Construction in Progress (3 000MW)
Awaiting Ground Breaking Ceremonies (1 020MW)
Awaiting ZIDA + Cabinet Approvals (450MW)
Now Concluding Financial Close (800MW)
TOTAL BY DECEMBER 2025 (2 500MW) (New)
TO ABBREVIATIONS
TRANSMISSION PROJECTS FOR VISION 2030
INVESTMENT
PARTNER PRODUCTS OR SERVICES INVESTMENT STRUCTURE APPROVAL STATUS CONTRACT
DELIVERY DATE CURRENT STATUS
A Power Cables and Conductor Manf.. PPP (EPC + F) JV Established (Evaco Cables (Pvt) Limited) July 2025 Plant Design, Board Appointed
B Smart Meters and Low Cost Laptops PPP (EPC + F) MOU Signed and EOI Submitted. August 2025 Development of Detailed Proposal.
B Solar Parabolic Troughs Manf.. PPP – (EPC) Agreement Signed at COP 28 June 2025 SPOC+ PRAZ Review and Feasibility Study
C Distrib. Products and Smart Meters PPP + Technology Transfer MOU Signed Awaiting ZIDA and PPP March 2025 Plant Design, Feasibility DueDiligence Underway
D Distrib..+ Manf.. of Lithium Ion Batteries International Distributorship MOU Signed. March 2025 Agreement Under Negotiation
E Inverters and Energy Storage International Distributorship MOU signed. March 2025 Agreement Under Negotiation
F Assembly of Heavy Duty EV Trucks International Distributorship MOU signed March 2025 Agreement Under Negotiation
G HV Transmission + Distribution Line PPP (EPC + F), Subcontracting .
BATOKA HYDRO POWER PROJECT
ZAMBIA - ZIMBABWE
Investment Risk Matrix and Legal Framework for x-Border IPP and BOT Investments
A Case Study in Africa Country Risk with Available Mitigation 2400MW Batoka Hydro Power Project
Presentation By DR SYDNEY ZIKUZO GATA - EXECUTIVE CHAIRMAN
ZESA HOLDINGS - ZIMBABWE 2022
Industry
Restructuring
Political Force
Majeure
Enforcement Risk (***)
Inflation and Monetary Policy
Interest Rate
Currency Exchange and Repatriation
Policy
Legal and Regulatory Risk
Permits and Licences
Plant and Equipment
Breakdown
Market and Trading System
Market Demand
PPA: Revenue Risk
Transmission and Trading Cost
Business and Economic Risk
Project Risk Matrix
Operation Risk
Fuel Supply
Fuel Price
PPA: Currency Risk
Escalation and Exchange
Rates
Project-Quality & Performance
Construction
Period Risk
Local TechnoIndustrial Capacity Risk Zambezi Hydrological Risk (***)
Environmental And Emissions Compliance O&M Cost Escalation O&M
Permitting Consents and Approvals
Construction Cost
Completion Risk
Program Over-run
BATOKA
Debt
CURRENT ELECTRICITY TRADING STRUCTURE (Commercial Risk Mitigation)
BATOKA(Genco): Generates and Sells Electricity Units to Electricity Market Operators (“EMOs”)
Power ZESCO-ZESA-SAPP Bulk Purchasers; Transmission and Trading Companies For ALL SAPP Electricity Trading.(“EMOs”)
Power Cash Markets (*) ZESCO + ZESA Prepayment Markets + SAPP Bilaterals
Post Payment Markets (**) (Maximum Demand) High Capacity Consumers:-: Large Commercial, Mining And Industrial Companies
FAILED ELECTRICITY TRADING STRUCTURE
Commercial Risk)
Imports at 9USc/kWh
EMERGING ELECTRICITY MARKET STRUCTURE (Commercial Risk Mitigation)
Bankable PPA’s
Competent Power Producers (Genco): Generates And Sells Electricity
Units to Competent Markets
Dispatch Wheeling
ZESCO-ZESA-EDM Bulk Dispatch And
Transmission System Operators And Wheeling Companies
Dispatch
Competent Primary Anchor Markets (*)
Dependable Revenues
Wheeling
High Capacity Consumers:Large Commercial, Mining, Smelting And Industrial Companies Secondary Markets
Public Utility Prepayment Markets + SAPP Bilaterals
Transmission UOS Service Charges
Legal, Regulatory and Environmental Risk Mitigation
• “Measures On Africa Country Risk”
• Upgrade current “IPP POLICY FRAMEWORKs” into IPP Laws.
• ‘
• Ring-fence and Quarantine IPP Projects from legal & regulatory risk through a “SPECIAL IPP LAWs” which carry “ Direct Authority of Parliament and The Constitution”.
• Dispute Resolution Process and Procedure which has provisions for realistic compensation, executed in a “NEUTRAL JURISDICTION”. with upfront agreement on ”ALLOCATION & PRICING “ of Risk.
THE Security package
