Zimbabwe faces a severe energy crisis as falling water levels at the crucial Kariba Dam disrupt the mining sector‘s stable power supply.
By Ryan Chigoche
The water level at Kariba Dam has dropped to 476.14 meters, down from 478.07 meters in 2023, reducing usable storage for power generation to a critical low of 4.46%, compared to 17.90% last year. The volume of usable water storage has fallen from 11.59 billion cubic meters (BCM) to just 2.89 BCM. Kariba Dam can generate up to 1,050 megawatts (MW) when full, but low levels now severely limit its output. With Zimbabwe’s peak demand near 2,000 MW, the shortfall is significant. Hwange Power Station provides about 1,000 MW, and independent producers contribute 40-50 MW, yet a considerable gap remains.
According to the State of the Mining Sector Survey Report, mining executives report frequent power outages, which are reducing output by up to 10%. With water levels expected to continue declining, the situation may worsen.
Impact on Mining Operations
Extended blackouts, lasting up to 18 hours in some regions, severely disrupt mining operations. Mining relies on constant power for pumping, crushing, and processing, and any interruption leads to delays, reduced output, and increased costs. To cope, mining companies are turning to diesel generators, which, while effective, are expensive and drive up production costs, impacting profitability.
This energy shortage is expected to force mining companies to reduce production, lowering exports, a crucial source of foreign exchange for Zimbabwe. This decrease in exports could shrink foreign currency reserves, placing pressure on the local currency and likely leading to inflation, reduced purchasing power, and weakened investor confidence. These economic challenges will make it more difficult for mining companies to secure capital for growth.
The mining industry currently consumes around 600 MW of power, a demand expected to rise by 18% to approximately 700 MW by 2025. Diesel use is also projected to grow by 12%, further straining costs for mining companies. Power shortages are likely to increase, posing ongoing challenges to meeting production targets and hindering future growth.
The Way Forward
The crisis at Kariba Dam underscores the urgent need for Zimbabwe to diversify its energy sources. Investing in renewable energy, such as solar, wind, and biogas, could reduce pressure on hydroelectric power which has proven to be highly unreliable. Zimbabwe has significant solar potential, which, if harnessed, could provide a steady supply of power, particularly beneficial for energy-intensive sectors like mining.
Climate change, while minimally driven by Zimbabwe, is worsening droughts and erratic rainfall, intensifying the energy crisis. Developing resilient energy systems is crucial to counter these impacts.
The decline in Kariba’s water levels is a call for Zimbabwe to rethink its energy strategy. The mining sector, a pillar of the economy, faces serious risks if the energy crisis persists. Immediate steps to diversify energy sources and invest in alternatives are essential to sustaining the mining industry and protecting Zimbabwe’s broader economy.
