Zimbabwe has taken a significant step toward strengthening its power supply with the signing of a long-term power purchase agreement (PPA) for the 30 MW Vungu Solar project, a utility-scale solar plant aimed at easing electricity shortages and improving national energy security.
The project addresses persistent challenges in Zimbabwe’s power sector, including ageing thermal generation assets and declining hydropower output due to recurring droughts.
A major milestone was reached with the signing of a 25-year PPA between Vungu Solar Private Limited and the state-owned Zimbabwe Electricity Transmission and Distribution Company (ZETDC). Under the agreement, ZETDC will purchase all electricity generated by the plant over the contract period, providing revenue certainty for the developer and a stable supply of clean energy to the national grid.
Once operational, the Vungu Solar plant is expected to supply electricity to approximately 76,000 households, contributing meaningfully to grid stability and reducing reliance on electricity imports.
The project is also notable as the first to be developed under Zimbabwe’s Government Project Support Agreement (GPSA) framework, which is designed to reduce risk for private investors. The GPSA supports cost-reflective tariffs and currency convertibility—key measures intended to improve bankability and attract independent power producers in a challenging economic environment.
Vungu Solar is being developed by the Private Infrastructure Development Group (PIDG) through InfraCo Africa, in partnership with Energywise Equipment and Impala Power Company. Legal and technical support has been provided by the African Legal Support Facility, helping ensure that project agreements meet international standards and are suitable for long-term financing.
Beyond boosting generation capacity, the project is being viewed as a model for Zimbabwe’s renewable energy transition. By establishing a transparent pricing structure and a clear regulatory pathway, the government aims to encourage further investment in solar and other clean energy technologies.
With the PPA now in place, project partners are focused on securing final financing ahead of construction. The Vungu Solar project is widely seen as a potential turning point for renewable energy development in Zimbabwe, with implications for job creation, energy independence and long-term power sector resilience.
