Zimbabwe has signed a $455 million, 15-year concession agreement with Jindal Africa, a subsidiary of India’s Jindal Steel & Power, to revamp its power plant in Hwange.
The aim is to revamp six ageing units at the Hwange thermal power station, the country’s largest coal-fired plant.
Energy Minister July Moyo announced the development after a cabinet meeting on Tuesday.
He said the project will take four years to complete.
Under the agreement, Jindal Africa will recover its investment from revenue generated through electricity sales.
Zimbabwe power supply challenges
Hwange, with an installed capacity of 1,520 MW, remains critical to Zimbabwe’s energy supply but has seen declining output.
Most of its older units, built in the 1980s, operate at only a third of their capacity due to frequent breakdowns.
Although, the facility was expanded in 2023 with the commissioning of two new units that added 600 MW to the grid.
Despite this, Zimbabwe generates only about half of its 2,000 MW demand, resulting in frequent and extended blackouts.
The government hopes the refurbishment will help stabilise supply, reduce dependence on costly power imports.
Push for private investment
Zimbabwe relies heavily on the Kariba hydropower station which has an installed capacity of 1,050 MW following a 2018 upgrade.
However, Kariba’s generation has been significantly reduced in recent years by recurring droughts that have lowered water levels in the Zambezi River.
To close the supply gap, Zimbabwe is targeting $9 billion in private capital under its new energy policy to double output by 2030.
The Zimbabwe Energy Regulatory Authority (ZERA) estimates that only 62% of the 15.1 million population currently has access to electricity.
ZESA reports that national grid supply stands at about 1,500 MW against demand of 3,000 MW.
Zimbabwe’s Independent Power Producers (IPPs), supported by the Intensive Energy Users Group (IEUG), are developing over 16,000 MW of new power projects.
The move aims to help close the country’s widening electricity supply gap.
Hwange’s strategic role
Built between 1983 and 1987, Hwange comprises four 120 MW units and two 220 MW units.
It is owned by the state-run Zimbabwe Electricity Supply Authority (ZESA Holdings) and operated by the Zimbabwe Power Company (ZPC).
The plant sources coal from the nearby Wankie colliery and uses water from the Zambezi River.
In April 2025, ZPC applied to renew the licence for Units 1–6 for another 25 years, highlighting Hwange’s central role in Zimbabwe’s power sector.
