The Sunday Mail
Lorraine Muromo – Business Reporter
THE Rural Electrification Agency intends to raise US$72 million to bankroll its renewable energy projects.
A huge chunk of the funds, US$50 million, is expected to come from a levy charged on electricity consumers, while the remainder will be raised from REA’s own business projects. Treasury is expected to chip in as well.
REA chief executive officer Engineer Joshua Mashamba told The Sunday Mail Business that the projects would be carried out through to 2018.
“If we manage to get the money we are expecting from levy plus that allocated by the Treasury, surely, the budget would be enough to cover the projects we have lined up this year.
“We hope to have achieved these projects from this year up to 2018,” said Eng Mashamba.
Some of the agency’s businesses include the wood pole treatment plant in Mutare and retailing of treated poles for entities such as mobile phone service providers.
As part of its renewable energy projects, REA has installed mini-grid solar systems at 403 rural institutions where there is no likelihood of grid electricity access in the short to medium term.
Components for the system were supplied by Italy to the Energy and Power Development Ministry.
Since 2007, REA has been pushing renewable energy projects and intends to electrify 500 rural government and health institutions and 250 schools.
REA has electrified around 7 974 institutions, rural homes, health centres and Government extension offices in the past 12 years.
This year, the agency expects to fit 41 institutions with mini-grid solar panels and 32 institutions with biogas digesters.
