Zimbabwe’s 30 MW Vungu solar project has signed a 25-year power purchase agreement (PPA) with the Zimbabwe Electricity Transmission and Distribution Company – moving the development closer to financial close and construction.
The project is the pilot under Zimbabwe’s Government Project Support Agreement solar independent power producer (IPP) programme – a policy framework that includes standardised documentation intended to de-risk IPP investments through provisions such as cost-reflective tariffs and currency convertibility. Government and development partners, supported by the African Legal Support Facility, negotiated the suite of documents with the aim of creating templates for future renewable projects.
According to project stakeholders, the long-term PPA provides guaranteed offtake at negotiated terms, which is a key requirement for project finance in markets challenged by tariff uncertainty and currency risk.
The plant is being developed by the Private Infrastructure Development Group, through its InfraCo platform, in partnership with local founder Energywise Equipment and Impala Power Company.
Officials at the signing ceremony said the agreement signals to investors that structured renewable procurement and long-term contracted revenue arrangements are possible in the Zimbabwean market with documentation developed under the programme intended to inform subsequent projects.
