The 30 megawatt Vungu Solar Project in the Midlands scored a major milestone on Tuesday when it signed a 25-year power purchase agreement (PPA) with the Zimbabwe Electricity Distribution Company (ZETDC as it moves towards the development phase.
A PPA guarantees that the project can sell the electricity it generates to the national greed at agreed terms, providing revenue certainty for investors.
The Vungu project, which was founded by Energywise Equipment and Impala, is being developed by the United Kingdom-based Private Infrastructure Group through its development arm InfracoAfrica.
It is set to become one of Zimbabwe’s first internationally project-financed solar independent power producers, supplying electricity directly into the national grid.
Peter Vowles, the UK ambassador to Zimbabwe, said the agreement was an important step towards finalising the Vungu solar project, which will provide power to 76 000 homes.
“The agreement being announced today is an important step towards finalising the Vungu Solar project which will provide enough power for 76 000 homes,” Vowles said.
“By agreeing a pricing structure, this project is also helping to set a template for more investors to enter Zimbabwe’s renewable energy market, creating jobs and building a greener future for all.
“It is a strong reflection of our countries’ shared commitment to sustainable growth.”
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Howard Choga, the ZETDC acting managing director said the PPA heralded an important contribution to meeting the energy needs of Zimbabwean consumers and industries.
“We look forward to seeing implementation of the project as soon as possible.” Choga said.
Benson Munyaradzi, the chief director in the Ministry of Energy and Power Development said the government selected Vungu as its preferred bidder through a pilot initiative by which it hoped to negotiate a set of bankable, standardised documents – including the PPA signed for the project.
Choga said the PPA can be used by other solar projects in the future, attracting development and private sector investment to accelerate the country’s energy transition, and achieve its ambitious electrification targets.
Energywise CEO, Culven Chipfumbu, said the signing of the PPA was a key milestone for Vungu Solar and acknowledged the commitment of ZETDC, Zimbabwe Energy Regulatory Authority, PIDG and Impala.
