Zimbabwe Locks in Long-Term Solar Deal as It Looks to Stabilise the Grid

Zimbabwe has moved to shore up its strained power system by securing a long-term offtake agreement for the 30 MW Vungu Solar project, signalling a more deliberate push towards utility-scale renewables. The 25-year power purchase agreement (PPA), signed between Vungu Solar Private Limited and the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), commits the national utility to buying the plant’s entire output once it comes online.

The deal arrives at a critical moment for the country’s energy sector. Ageing thermal stations, coupled with declining hydropower output due to persistent drought conditions, have left Zimbabwe grappling with supply shortfalls and increased reliance on electricity imports. Against this backdrop, the Vungu Solar project is positioned as a modest but meaningful addition to the national grid, with enough capacity to serve over 70,000 households.

What sets the project apart, however, is not just its generation capacity but the framework under which it has been developed. Vungu Solar is the first initiative to reach financial close under Zimbabwe’s Government Project Support Agreement (GPSA), a policy instrument designed to address long-standing investor concerns. By supporting cost-reflective tariffs and providing assurances regarding currency convertibility, the GPSA aims to create a more bankable environment for private power producers in a market historically viewed as high-risk.

The project is being led by the Private Infrastructure Development Group, through its InfraCo Africa platform, in partnership with Energywise Equipment and Impala Power Company. The African Legal Support Facility has provided transaction support, helping to align the contractual structure with international financing standards.

Beyond its immediate impact on power supply, the Vungu Solar project is widely seen as a test case for Zimbabwe’s renewable energy ambitions. If successful, it could demonstrate that transparent pricing, clear regulation and credible government backing are enough to unlock further private investment in clean energy. The project is also expected to deliver broader economic benefits, including local employment and reduced exposure to volatile regional power markets.

With the PPA now signed, attention turns to securing final funding and breaking ground. For Zimbabwe, Vungu Solar represents more than a single power plant—it is a signal of intent to reshape how energy projects are developed and financed in the country.