- Private Infrastructure Development Group (PIDG) company, InfraCo Africa, has signed an agreement with Energywise Equipment (Pvt) Ltd (Energywise) and Impala Power Company Ltd (Impala), investing US$1.5m to progress development of the 30MW Vungu Solar project in Zimbabwe’s Midlands Province.
- Vungu Solar is poised to become Zimbabwe’s first internationally project financed solar Independent Power Producer (IPP).
Vungu Solar was selected by the Government of Zimbabwe as its preferred bidder in a national pilot programme designed to develop a suite of standardised documentation to be used by solar IPPs in the country. With support from the Africa Legal Support Facility, the Ministry of Energy and Power Development prepared a standardised Power Purchase Agreement (PPA), Government Project Support Agreement, and central bank undertaking, the details of which are being negotiated with Vungu Solar.
The project will contribute towards delivery of SDG 7 – Access to affordable clean energy – and SDG 13 on climate action.
Having advanced negotiations with Zimbabwe Electricity Transmission and Distribution Company (ZETDC) around a bankable 25-year PPA, Vungu Solar is expected to pilot the use of the country’s new standardised documentation. It is anticipated that the pilot will enable the government to attract future private sector investment to grow the country’s renewable energy sector.
Projects in Zimbabwe have been unbankable because of widespread corruption and a lack of sovereign debt cover in the event of default by the state owned off-taker ZETDC. Payment in foreign currency is also a problem Read more
Author: Bryan Groenendaal
