Zimbabwe has entered into a US$455 million, 15-year concession agreement with Jindal Africa, a subsidiary of India’s Jindal Steel, to refurbish ageing units at the Hwange thermal power station, the country’s largest coal-fired plant.
Energy Minister July Moyo announced the deal following a post-Cabinet briefing on Tuesday, noting that the project will target six units with a combined capacity of 920 megawatts.
The refurbishment is expected to take four years.
Under the concession, Jindal Africa will recoup its investment through revenue generated from electricity sales once the units are brought back online.
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Zimbabwe is currently producing only about half of its 2,000 MW national electricity demand, resulting in frequent and prolonged power outages.
The Hwange plant, which has an installed capacity of 1,520 MW, has suffered major setbacks, with its older units—built in the 1980s—operating at just a third of their capacity due to repeated breakdowns.
The plant last saw significant investment in 2023, when two new units were commissioned, adding 600 MW to the grid. However, the continued decline of the older infrastructure has limited its overall contribution.
Zimbabwe’s other major facility, the Kariba hydropower station, underwent a 300 MW upgrade in 2018, boosting capacity to 1,050 MW. Yet, output there has been inconsistent in recent years due to recurrent droughts that affect water levels in Lake Kariba.
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