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Zimbabwe Signs $455M Agreement to Add ~400 MW at Hwange, Its Largest Power Plant

Zimbabwe Signs $455M Agreement to Add ~400 MW at Hwange, Its Largest Power Plant
Tuesday, 30 December 2025 15:34
  • Zimbabwe to add up to 400 MW by upgrading Hwange power plant

  • $455 million Jindal-led project starts 2026 under 15-year concession

  • Capacity boost aims to ease shortages and reduce costly power cuts

Zimbabwe plans to add up to 400 megawatts (MW) to its power grid by upgrading aging units at its Hwange thermal power station, authorities said on Monday.

The announcement followed the signing of a concession agreement between the government and the African unit of India’s Jindal Steel group to rehabilitate the plant. The project will focus on several older units whose performance has steadily declined.

Under the 15-year concession, the $455 million project will involve technical upgrades to bring part of the plant’s idle capacity back into service. Work is expected to begin in the first quarter of 2026 and take about four years.

Hwange, Zimbabwe’s largest power station, has an installed capacity of about 1,520 MW, but effective output is significantly lower due to aging equipment, recurrent breakdowns and financial constraints.

Official data puts Zimbabwe’s available grid capacity at between 1,200 MW and 1,600 MW, well below peak demand of more than 2,000 MW. The shortfall has led to recurring power cuts, weighing on economic activity, particularly in mining and industry.

The additional capacity would cover roughly one-fifth of current demand. To bridge the gap, Zimbabwe imports electricity, including about 300 MW from South Africa and 50 MW from Mozambique through regional interconnectors.

According to the World Bank, electricity shortages cost Zimbabwe an estimated 6.1% of GDP in 2022. While access to electricity rose to 62% that year, power cuts of up to 18 hours a day persist.

Abdel-Latif Boureima

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