Zimbabwe, Vungu Sign Solar IPP Deal

Key Figures & Findings: Vungu Solar (Pvt) Ltd has entered a Government Project Support Agreement with Zimbabwe’s Ministry of Energy and Power Development to develop a 30 MWac solar IPP that will sell power to the state utility ZETDC. The agreement—drafted with the African Legal Support Facility and spearheaded by InfraCo Africa, Energywise, and Impala—includes currency-convertibility clauses, cost-reflective tariffs, and partial-risk guarantees to de-risk foreign capital. Once complete, the 30 MWac plant will supply clean electricity to Zimbabwe Electricity Transmission and Distribution Company (ZETDC) under a long-term power purchase agreement.

Statistics & Insights: The project is expected to generate 60 GWh annually and offset 45,000 tonnes of CO₂. Zimbabwe aims to achieve 1,100 MW in renewables and universal electricity access by 2030.

Future Implications: If financial close is reached by mid-2026, the plant could come online in 2028 and serve as a blueprint for additional IPPs under the GPSA structure. Its performance would likely influence future climate-linked infrastructure funding for Zimbabwe.

Source: SolarQuarter