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2023-12-11
During the COP 28 climate conference in Dubai, the companies Zimbabwe Electricity Supply Authority Holdings (Private) Limited (ZESA) and Swedish Absolicon Solar Collector AB (Absolicon) signed a agreement on cooperation for the production of concentrating solar collectors in Zimbabwe.
Remarks by Dr Sydney Gata ZESA EC
Today marks a momentous occasion as we gather here to witness the signing ceremony between ZESA Holdings and Absolicon, marking a significant step towards a cleaner and more sustainable future for Zimbabwe.
I am pleased to present an overview of the project that will see the establishment of Absolicon’s robotic manufacturing plant, producing solar collectors to provide fossil-free heat, replacing the 1400 coal-fired boilers currently in use in our country.
The solar collectors produced by Absolicon’s robotic manufacturing plant will revolutionize our energy landscape. These collectors will heat water to produce steam at temperatures of up to 160 degrees Celsius, thereby offering a clean and renewable energy alternative.
By deploying these collectors in various sectors such as hospitals, beverage manufacturers, tea estates, hotels, and district heating, we will significantly reduce our reliance on coal-fired boilers, which contribute to carbon emissions and air pollution.
Currently, Zimbabwe heavily relies on coal-fired boilers, with the majority of them located in our capital city, Harare. However, the coal itself is mined and produced in Hwange, a distance of 1000 kilometres away from Harare. The transportation of coal from Hwange to Harare involves the use of fossil fuel-fired engines, further contributing to carbon emissions.
With the establishment of the robotic manufacturing plant, we will be able to produce the solar collectors locally, eliminating the need for long-distance transportation and reducing our carbon footprint.
The implementation of this project comes at a cost of 7.6 million, and we are fully committed to securing the necessary financing. We will be exploring opportunities on the capital markets together with Absolicon to ensure the successful procurement of the required technology.
In this regard, we are currently in discussions with the Embassy of Sweden in Zimbabwe, and there are promising prospects of obtaining a security guarantee instrument from SIDA (Swedish International Development Cooperation Agency).
The significance of this signing ceremony cannot be overstated.
By embracing this clean and renewable energy solution, we are taking a significant step towards reducing carbon emissions, improving air quality, and promoting sustainable development in Zimbabwe. We are confident that this project will not only provide us with a cleaner source of heat energy but also create local job opportunities and foster technological advancements in our country.
I would like to express my gratitude to Absolicon for their commitment to partnering with us and for their innovative technology that will revolutionize our energy sector. I also extend my appreciation to the Embassy of Sweden in Zimbabwe for their support and potential collaboration in securing the necessary financing for this project.
In conclusion, the establishment of Absolicon’s robotic manufacturing plant and the production of solar collectors for clean heat energy is a transformative initiative for Zimbabwe. It marks a significant milestone in our journey towards a more sustainable and environmentally friendly future. Together with Absolicon and our partners, we will continue to explore opportunities, secure financing, and drive the successful implementation of this project.
Remarks by Absolicon CEO Mr Joakim
We signed an agreement on cooperation for mass production of concentrating solar collectors in Zimbabwe. The agreement describes the steps to the establishment of Absolicon’s robotized production line and involves an initial payment of 100,000 Euro. Zimbabwe’s national electricity company plans local production of solar collectors to supply the country’s industries with fossil-free heat.
During the COP 28 climate conference in Dubai, the companies Zimbabwe Electricity Supply Authority Holdings (Private) Limited (ZESA) and Swedish Absolicon Solar Collector AB (Absolicon) signed an agreement on cooperation for the production of concentrating solar collectors in Zimbabwe.
The collaboration aims to establish Absolicon’s robotized production line for solar collectors in Zimbabwe and is the first step in a sale of the production line to ZESA.
Local production of Absolicon’s patented solar collectors provides added value such as shorter transports, lower prices and locally adapted solutions.
Strong production capability to meet the high demand
Swedish Absolicon has developed a unique concentrating solar collector for industrial heating. Today, Carlsberg, Birra Peroni and Colgate-Palmolive, among others, use solar heat from Absolicon.
The number of solar thermal installations in industries increased by 60% between 2021 and 2022. Continued strong growth requires a large increase in manufacturing capacity.
In order to create a competitive business for the solar collectors, Absolicon has developed a production line for local mass production of solar collectors.
In December 2022, production lines were sold in Egypt and Canada.
Absolicon’s production line creates competitive conditions for Absolicon’s solar heating and the agreement on cooperation entails exclusive rights for marketing, production and distribution of Absolicon’s solar collectors for ZESA in Zimbabwe.
In November 2023, ZESA announced that, after consultations in Zimbabwe and feasibility studies, they have completed their evaluation and have decided to proceed with the process of purchasing one of Absolicon’s robotized production lines by signing the partnership agreement proposed by Absolicon. In the process, Absolicon has collaborated with Lars Ling, business advisor from CleanTech Region Impact Group.
The cooperation agreement is the first step to purchase a production line where the customer pays 100,000 Euro (equivalent to approximately SEK 1.2 million) and together with Absolicon, the preparation of detailed agreements and plans for the delivery of the production line begins. The total value of the production line is approximately EUR 4 million. The remaining payment shall be initiated within 9 months of the first payment, conditional on the buyer being able to fully finance the production line.
Remarks by Zimbabwean Ambassador to Sweden Priscilla Misihairabwi (More to be said onsite)
This is part of the Re engagement strategies by the Government being led by His Excellency the President of Zimbabwe Cde. Dr ED Mnangagwa. Indeed, Zimbabwe is open for business and when we have been embarking on several projects attracting investors from the Nordic Countries, I’m very elated that this has come to fruition after visits to and from Zimbabwe that included several stakeholders from Government, Parliament and Business. I would like to proffer my appreciation to the Government of Sweden through the SwedFund for agreeing to invest in Zimbabwe.
GREENCO SIGNING CEREMONY
Remarks by Executive Chairman Dr Sydney Gata on Greenco Signing Ceremony
I stand before you again Distinguished Guests, as we gather here to witness the signing of a significant agreement between the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and Africa Greenco. This agreement marks a crucial step in restructuring electricity markets and promoting the utilization of renewable energy sources in Zimbabwe.
I am pleased to stand before you today as we embark on a new chapter in our country’s energy sector. The agreement we are signing today allows Africa Greenco to access and utilize our grid for electricity trading. This partnership opens up opportunities for renewable energy integration and facilitates the efficient utilization of our resources.
We recognize that achieving universal access to clean and affordable energy, while fuelling accelerated growth in Zimbabwe, requires close collaboration between the public and private sectors. It necessitates a willingness to embrace new business models and innovative approaches. Africa Greenco’s presence here today exemplifies the importance of private sector participation in the development of our energy industry.
Africa Greenco’s innovative approach to risk mitigation creates and unlocks significant investments, enabling the efficient and sustainable development of Zimbabwe’s vast renewable energy resources. This partnership aligns with our vision of transitioning to a greener energy landscape without placing an undue burden on governments and the public sector. It is a testament to the importance of fostering public-private partnerships to achieve our shared goals.
By embracing renewable energy and encouraging private sector involvement, we are not only diversifying our energy mix but also promoting economic growth, job creation, and environmental sustainability. We understand the immense potential that lies within our country’s renewable energy resources, and this agreement paves the way for their efficient utilization.
We must acknowledge that restructuring our markets is a critical aspect of this transition. We need to create an enabling environment that fosters competition, innovation, and investment. It requires us to reassess our existing frameworks, streamline processes, and adopt new market structures that support the growth of renewable energy.
As the Executive Chairman of ZETDC, I am committed to driving this transformation. We will work tirelessly to ensure that our grid is accessible and supportive of renewable energy integration. We will collaborate with our partners in the private sector, like Africa Greenco, to foster a resilient and sustainable energy future for Zimbabwe.
I would like to express my gratitude to the team at Africa Greenco for their commitment and partnership in realizing our shared vision. I am confident that together, we will make significant strides towards achieving our renewable energy targets and unlocking the immense potential that lies within our country.
In conclusion, I would like to emphasize that this agreement signifies a turning point in our energy sector. It represents our commitment to embracing renewable energy, promoting private sector participation, and creating a sustainable and prosperous future for Zimbabwe. I am honoured to be part of this transformative journey, and I look forward to witnessing the positive impact it will have on our nation.
Thank you all for your presence here today and for your unwavering support.
Remarks by Anah Hajduka CEO
Africa GreenCo Group, through its Zimbabwean operating subsidiary, ZimGreenCo Power Services (Pvt) Limited (together GreenCo) is delighted to announce significant milestones that underscore our commitment to advancing the renewable energy sector in the region and fostering sustainable development.
COP 28 provided the perfect backdrop to formalise the arrangements by which Zimbabwe Electricity Transmission & Distribution Company (ZETDC) will provide GreenCo with access to the Zimbabwean national electricity network in order to conduct electricity trading activities within Zimbabwe. This grid access will enable GreenCo to support the development of renewable energy generation in Zimbabwe and to provide new sources of supply to the many burgeoning Zimbabwean businesses that urgently require additional power to implement their ambitious expansion plans.
Cathy Oxby, GreenCo’s Chief Commercial Officer noted that “as the role of utilities evolves, it is vital to put in place arrangements which enable new market participants to utilise the existing grid infrastructure while remunerating utilities fairly for the essential services they provide and the costs they incur in operating and maintaining the network. ZETDC have consistently demonstrated a pragmatic approach to addressing challenges and reaching win-win solutions. We very much look forward to working closely with them over the years ahead as we jointly support the development of the Zimbabwean energy sector.”
This collaboration between ZETDC and GreenCo paves the way for enhanced energy security and grid reliability in Zimbabwe, which is in line with President Emmerson Mnangagwa’s call for more investment in the energy sector to meet Zimbabwe’s growing energy demand.
In an associated development, GreenCo is thrilled to announce the approval of its Zimbabwean retail supply licence by the Zimbabwe Energy Regulatory Authority (ZERA), a significant milestone that advances our mission to foster investment in Zimbabwe’s renewable energy sector. ZERA’s approval aligns with the overarching national goal of increasing installed renewable energy capacity to 26.5% of the total generation capacity mix by 2030. In addition to the retail licence approval, GreenCo was granted an investment licence from the Zimbabwe Investment and Development Agency (ZIDA)earlier this year, demonstrating ZIDA’s commitment to promoting a favourable investment climate and attracting private sector investments to boost Zimbabwe’s economy.
Zimbabwe possesses abundant untapped renewable energy resources, including solar, wind, and hydro potential, yet to be fully harnessed. GreenCo, in collaboration with key industry stakeholders, aims to effectively leverage these resources. The mission is to participate in opening Zimbabwe’s electricity supply industry, fostering competition through innovative market models, all while remaining dedicated to supporting the country’s transition to a more sustainable, reliable energy sector. This commitment involves promoting investment, renewable energy, and local development, underscoring our role as a steadfast partner actively promoting regional sustainability and innovation.
A reliable energy supply is a cornerstone for economic growth, industrial development and the well-being of communities, making these milestones a vital step towards achieving energy security.
Remarks by Honorable Minister Edgar Moyo at the Signing Ceremony (Concentrated Solar and Africa Greenco System Operations Agreement)
Today is a momentous occasion as we gather here to witness the signing ceremony that marks a significant step towards a cleaner and more sustainable future for Zimbabwe. I am delighted to announce the establishment of Absolicon’s robotic manufacturing plant, which will produce solar collectors and provide fossil-free heat, replacing the 1400 coal-fired boilers in our country.
Additionally, ZESA Holdings has also signed a System Operations Agreement with Africa Greenco, a private company dedicated to supporting renewable energy development in Zimbabwe. These two agreements, signed during the ongoing COP28 in Dubai, at the Zimbabwe Pavilion, are truly historic and mark a significant milestone in our nation’s journey towards a greener and more environmentally friendly energy sector.
The establishment of Absolicon’s robotic manufacturing plant is a testament to our commitment to transitioning to clean and renewable sources of energy. With the production of solar collectors, we aim to significantly reduce our reliance on coal-fired boilers, which have been a major contributor to carbon emissions and air pollution in our country. This initiative will not only help us achieve our climate goals but will also provide clean and sustainable heat energy for various sectors, including industrial, commercial, and residential.
The partnership between ZESA Holdings and Absolicon is a prime example of the power of collaboration. By joining forces, we can harness the expertise and innovative technologies offered by Absolicon to drive the growth of renewable energy in Zimbabwe. This collaboration will not only create job opportunities but will also contribute to the development of a skilled workforce in the clean energy sector.
Furthermore, the signing of the System Operations Agreement with Africa Greenco represents our commitment to ensuring the successful integration and operation of renewable energy sources into our national grid. Africa Greenco’s expertise in providing security and guarantees for renewable energy projects will be instrumental in supporting the development and deployment of clean energy solutions across Zimbabwe. This partnership will unlock new opportunities for investment in renewable energy and pave the way for a more sustainable and resilient energy system.
I would like to express my sincere appreciation to Absolicon and Africa Greenco for their commitment to partnering with Zimbabwe in our journey towards a sustainable energy future. These agreements would not have been possible without their dedication, expertise, and shared vision for a clean and prosperous Zimbabwe.
I would also like to extend my gratitude to all the stakeholders involved in making these agreements a reality. Their hard work, determination, and belief in the potential of renewable energy have brought us to this momentous occasion. Together, we are taking significant strides towards achieving our climate goals and ensuring a better future for generations to come.
As we celebrate these landmark agreements, let us also recognize the importance of international cooperation in addressing the global challenges of climate change. The ongoing COP28 in Dubai provides a platform for nations to come together, exchange ideas, and forge partnerships that will pave the way for a sustainable and resilient future. Zimbabwe is proud to be part of this global effort, and we remain committed to playing our part in the global transition to a low-carbon economy.
In conclusion, I am filled with optimism and excitement as we embark on this transformative journey towards a cleaner and more sustainable energy sector in Zimbabwe. The signing of these agreements today marks a new chapter in our nation’s history, is testimony of His Excellency’s mantra, Zimbabwe is open for business, and our commitment to triple our renewable energy, environmental stewardship, and a brighter future for all.
