Vungu Solar Signs 25-Year PPA with ZETDC for 30 MW Solar Project in Zimbabwe

Vungu Solar Pvt Ltd has signed a 25-year Power Purchase Agreement (PPA) with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) for the development of a 30 MWac solar power project, marking a significant milestone for Zimbabwe’s renewable energy sector.

The agreement was signed at a formal reception held at the residence of Pete Vowles, British Ambassador to Zimbabwe, underscoring strong international support for the project. The solar plant will serve as the pilot project under the Government of Zimbabwe’s Government Project Support Agreement (GPSA) solar Independent Power Producer (IPP) programme, positioning it among the country’s first internationally project-financed solar IPPs supplying power to ZETDC.

The project is being developed by Vungu Solar Pvt Ltd, led by the Private Infrastructure Development Group (PIDG) through its InfraCo platform, in partnership with Energywise Equipment (Pvt) Ltd, the project founder, and Impala Power Company Ltd.

Speaking at the signing ceremony, Pete Vowles, British Ambassador to Zimbabwe, said the project represents a key step toward boosting the country’s clean energy capacity. He noted that the plant will provide electricity to approximately 76,000 households, while also establishing a pricing structure that can serve as a benchmark for future renewable energy investments, encouraging job creation and supporting Zimbabwe’s transition toward a greener economy.

Engineer Raphael Katsande, Acting Managing Director of ZETDC, welcomed the agreement, stating that the PPA will make a vital contribution to meeting the growing energy needs of Zimbabwean consumers and industries. He added that ZETDC looks forward to the swift implementation of the project.

Engineer Benson Munyaradzi, Chief Director at the Ministry of Energy and Power Development (MOEPD), highlighted that Vungu Solar was selected as the preferred bidder under a pilot initiative aimed at creating bankable and standardised project documentation, including the PPA. This framework is expected to accelerate private sector participation, attract international investment, and support Zimbabwe’s ambitious electrification and energy transition targets.

Commenting on behalf of Vungu Solar, Culven Chipfumbu, Chief Executive Officer of Energywise Equipment, said that securing the PPA marks a major project milestone. He acknowledged the support of ZETDC, ZERA, PIDG, and Impala Power, and reaffirmed the company’s commitment to expediting project financing in order to commence construction at the earliest.

Michiel Oosterhaven, PIDG’s Regional Business Development Lead for InfraCo, described the agreement as the culmination of extensive collaboration among stakeholders. He added that the development of standardised and bankable documentation would open the door for large-scale renewable energy investments, strengthening Zimbabwe’s clean energy pipeline.

The documentation process was supported by the African Legal Support Facility (ALSF), working alongside a cross-government task force led by the MOEPD. The PPA complements the Government Project Support Agreement (GPSA), a policy mechanism designed to reduce investment risks through government guarantees, cost-reflective tariffs, and currency convertibility provisions.

Olivier Pognon, Chief Executive Officer of ALSF, said the agreement marks a critical step in attracting international capital into Zimbabwe’s power sector, establishing a bankable procurement framework capable of accelerating new renewable generation capacity and enhancing investor confidence.

Once operational, the 30 MW solar plant is expected to significantly strengthen Zimbabwe’s energy security, support decarbonization efforts, and expand access to clean electricity.