By: GBA Green building Africa

Zimbabwe’s energy regulator will introduce a competitive bidding system for electricity generation projects from 2026, marking a major step toward liberalising the country’s power sector.

The Zimbabwe Energy Regulatory Authority (ZERA) announced that the new procurement model will replace the current system of unsolicited bids — where companies submit project proposals without official invitation — with a formal and transparent tender process.

The change aligns with broader government reforms to open the electricity retail market to private companies, ending the monopoly long held by the state-owned Zimbabwe Electricity Transmission and Distribution Company (ZETDC).

Speaking at the Zimbabwe Economic Development Conference recently, ZERA Chief Executive Officer Edington Mazambani said the shift is aimed at improving transparency, ensuring cost efficiency, and driving down electricity tariffs.

“The shift from unsolicited bids will ensure transparency and 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 confirmed that ZERA is developing a comprehensive regulatory framework to govern the bidding process. The framework will be designed to attract both local and international investors while guaranteeing fair returns and rewarding operational efficiency.

The announcement comes as Zimbabwe prepares to liberalise its electricity retail sector. From next year, private companies will be allowed to sell and distribute power, while ZETDC will retain control of the national transmission network. The utility will also make its substations and transmission lines available for use by private operators.

Mazambani said ZERA’s priority is to establish the necessary structures to facilitate private sector participation as swiftly as possible.

Zimbabwe’s renewable energy sector has attracted little investor interest to date with only around 200MW of solar capacity installed mostly at point use by the private sector. Concerns are raised regarding project bankability with no sovereign guarantees in place in long term power purchase agreements with ZETDC.