The political economy of power generation in Zimbabwe since 1980

This article presents a historical analysis of the power generation choices in Zimbabwe since independence in 1980; their causes and consequences. In the early 1980s, the electricity supply choices of the country were dictated by a policy of self-sufficiency, and least-cost supply options (e.g. imports and hydropower) were rejected at a not negligible economic cost. At the end of the 1980s, a new political environment and pressures from the World Bank prompted substantial changes towards least-cost alternatives. In the early 1990s, security of supply motives still played an important role and financial constraints were severe. At present, however, there is little evidence that imported power is still as cheap a source of electricity as it was about 15 years ago. This situation together with the ongoing trend towards higher discount rates imply that thermal power, in particular coal-fired power, will dominate future electricity supply investments in Zimbabwe.