VUNGU Solar Pvt Ltd, backed by international investors, has signed a 25-year power purchase agreement (PPA) with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to supply 30 megawatts (MW) to the national grid.
The project is being developed by the Private Infrastructure Development Group (PIDG) through its InfraCo initiative, in partnership with project founder Energywise Equipment (Pvt) Ltd and Impala Power Company Ltd.
PIDG is a global infrastructure investor and developer that mobilises private capital for sustainable projects across sub-Saharan Africa and South and Southeast Asia. Since 2002, it has supported 258 infrastructure projects, providing over 232 million people with access to new or improved infrastructure.
This deal comes at a critical time for Zimbabwe, which faces a power deficit of between 1 500MW and 2 000MW.
By injecting 30MW into the national grid, Vungu Solar will provide electricity for an estimated 76 000 homes, set a template for bankable renewable energy investments, and signal a major step forward in the country’s energy transition and efforts to attract private sector investment.
“The agreement being announced today is an important step towards finalising the Vungu Solar project, which will provide enough power for 76 000 homes,” British ambassador to Zimbabwe Pete Vowles said at the official signing ceremony of the PPA at his residence in Harare yesterday.
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He added that by establishing a pricing structure, the project sets a model for other investors to enter Zimbabwe’s renewable energy market, creating jobs and promoting a greener future.
Engineer Howard Choga, ZETDC’s acting managing director, welcomed the agreement, describing it as a critical contribution to meeting Zimbabwean energy needs.
Negotiations were supported by the African Legal Support Facility (ALSF) and led by a cross-government team under the Ministry of Energy and Power Development.
The PPA works alongside the Government Project Support Agreement (GPSA), a policy framework designed to de-risk independent power producer (IPP) investments through guarantees, cost-reflective tariffs, and currency convertibility provisions.
Benson Munyaradzi, chief director at the Ministry of Energy and Power Development, said Vungu was selected through a pilot initiative aimed at creating standardised, bankable agreements for future solar projects. The initiative is intended to attract private sector investment, accelerate Zimbabwe’s energy transition, and help achieve national electrification
targets.
Zimbabwe’s electricity demand currently outstrips supply, with deficits met through imports and frequent load-shedding. Although solar capacity is growing, the country remains heavily reliant on hydro and coal, with droughts in recent years affecting hydroelectric output.
“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,” PIDG regional business development lead for InfraCo, Michiel Oosterhaven, said.
“By negotiating standardised, bankable documentation, Vungu Solar also sets the stage for new investors to enter Zimbabwe’s renewable energy sector at scale.”