PPA signed for pioneering Vungu Solar project in Zimbabwe
Harare, Zimbabwe: At a reception held today at the residence of Pete Vowles, British Ambassador to Zimbabwe, Vungu Solar Pvt Ltd signed a 25-year Power Purchase Agreement (PPA) with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).
As the pilot for the Government of Zimbabwe’s Government Project Support Agreement (GPSA) solar IPP programme, the 30MWac solar project is set to be among Zimbabwe’s first internationally project-financed solar independent power producers (IPPs) selling to ZETDC. The Private Infrastructure Development Group (PIDG) is leading Vungu Solar’s development – through its project development solution, InfraCo – alongside project founder, Energywise Equipment (Pvt) Ltd (Energywise), and Impala Power Company Ltd (Impala).
Speaking at the signing event, Mr Vowles said, “The agreement being announced today is an important step towards finalising the Vungu Solar project which will provide enough power for 76,000 homes. 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.”
Engineer Raphael Katsande, Acting Managing Director of ZETDC said, “ZETDC welcomes this PPA as heralding 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.”
Engineer Benson Munyaradzi, Chief Director of the Ministry of Energy and Power Development (MOEPD) said, “The government of Zimbabwe 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 here today – which 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.[i] MOEPD is proud to play a role in this initiative.”
Speaking on behalf of Vungu, Energywise CEO, Culven Chipfumbu, said, “The signing of the PPA is a key milestone for Vungu Solar and we would like to acknowledge the commitment of ZETDC, ZERA, and our partners, PIDG and Impala, to the project. We are committed to working to secure financing for the project with a sense of urgency so that we can start construction as soon as possible.”
Michiel Oosterhaven, PIDG Regional Business Development Lead for InfraCo, said, “The signing marks the culmination of considerable work by all parties to progress this pioneering approach to delivering clean energy for Zimbabwe’s homes and businesses. By negotiating standardised, bankable documentation, Vungu Solar also sets the stage for new investors to enter Zimbabwe’s renewable energy sector at scale.”
With support from the African Legal Support Facility (ALSF), negotiation of documentation was undertaken with a cross-government group led by the Ministry of Energy and Power Development. The PPA goes hand-in-hand with the Government Project Support Agreement (GPSA) — a policy tool designed to de-risk IPP investments through guarantees, cost-reflective tariffs, and currency convertibility provisions — the signing of which was announced at last year’s African Energy Forum in Cape Town.
Olivier POGNON, the Chief Executive Officer and Director of the ALSF, said, “The signing of this PPA represents a critical milestone in Zimbabwe’s efforts to attract external capital into its power sector. This project forms part of a solar power procurement pilot that is designed to develop a standardised, bankable procurement toolkit. This framework will accelerate the development of new generation capacity by enhancing predictability, improving investor confidence, and ensuring commercially viable terms that are fiscally sustainable for the Government.”
