Zimbabwe Signs 25-Year PPA For 30 MW Vungu Solar Project To Strengthen Power Supply

Zimbabwe has taken an important step toward strengthening its energy sector with the signing of a long-term agreement for the Vungu Solar project, a 30-megawatt utility-scale solar power plant. The project is part of the country’s wider plan to reduce power shortages and improve energy security, as Zimbabwe continues to face challenges from old thermal power plants and reduced hydropower generation caused by frequent droughts.

A key milestone for the project was achieved with the signing of a 25-year Power Purchase Agreement between Vungu Solar Private Limited and the state-owned Zimbabwe Electricity Transmission and Distribution Company. Under this agreement, ZETDC will buy all the electricity generated by the solar plant for the next 25 years. This provides revenue certainty for the project developer and ensures a stable supply of clean power for the national grid. Once the plant becomes operational, it is expected to supply electricity to around 76,000 households.

The Vungu Solar project is also significant because it is the first project to be developed under Zimbabwe’s Government Project Support Agreement framework. The GPSA is aimed at reducing risks for private investors by supporting cost-reflective tariffs and allowing currency convertibility. These measures are especially important in Zimbabwe, where economic challenges have previously made it difficult to attract foreign investment. By offering a clear and bankable structure, the GPSA is expected to improve investor confidence and make it easier for future independent power producers to enter the market.

The project is being developed by the Private Infrastructure Development Group through InfraCo Africa, working together with Energywise Equipment and Impala Power Company. Legal and technical support has been provided by the African Legal Support Facility to ensure that all agreements meet international standards and are suitable for long-term financing.

Beyond its immediate contribution to electricity supply, the Vungu Solar project is seen as a model for Zimbabwe’s clean energy transition. By creating a transparent pricing system and a clear regulatory process, the government hopes to encourage more renewable energy investments in the coming years. The project is also expected to support job creation and reduce Zimbabwe’s dependence on costly electricity imports from neighboring countries.

With the power purchase agreement now in place, the project developers are focusing on securing final financing so that construction can begin soon. The progress of the Vungu Solar project is widely viewed as a turning point that could shape the future of renewable energy development in Zimbabwe.