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Vungu Solar Project signs 25-year power deal with ZETDC
The 30-megawatt Vungu Solar Project has moved a step closer to construction after signing a 25-year Power Purchase Agreement (PPA) with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC).

The long-term agreement guarantees that electricity generated by the project will be sold to the national grid under agreed terms, providing revenue certainty and bankability for investors.

The project was founded by Energywise Equipment and Impala Power and is being developed by UK-based Private Infrastructure Development Group (PIDG) through its development arm, InfraCo Africa.

Once operational, Vungu Solar will rank among Zimbabwe's first internationally project-financed independent power producer (IPP) solar plants, feeding power directly into the national grid at a time when the country continues to face electricity supply deficits.

The signing of the PPA follows the conclusion last year of a Government Project Support Agreement (GPSA) between InfraCo Africa and the Government of Zimbabwe. The GPSA forms part of broader efforts by authorities to address investor concerns around currency volatility, tariff setting and payment risk in the energy sector.

Under the GPSA framework, IPPs are guaranteed cost-reflective tariffs, a committed power offtaker through ZETDC, and assurances that they can repatriate profits, measures designed to improve Zimbabwe's attractiveness to international infrastructure investors.

Energy sector analysts say the Vungu Solar Project is a significant milestone in the country's renewable energy drive, signalling growing confidence in Zimbabwe's power sector reform agenda and the viability of utility-scale solar projects.

Construction timelines for the project have not yet been announced, but once built, the plant is expected to contribute to grid stability, reduce reliance on imports and advance Zimbabwe's transition towards cleaner energy sources.