In a landmark move, the Private Infrastructure Development Group (PIDG) company, InfraCo Africa, has signed an agreement with Energywise Equipment (Pvt) Ltd (Energywise) and Impala Power Company Ltd (Impala) to invest US$1.5 million in the development of the 30MWac Vungu Solar project in Zimbabwe’s Midlands Province. This project is set to become Zimbabwe’s first internationally project financed solar Independent Power Producer (IPP).
Omar Jabri, Head of Business Development at InfraCo Africa, commented, “We are proud to be working with local developer Energywise and the team at Impala to progress this pioneering project. Vungu Solar aligns with PIDG’s commitment to improving energy production and access in countries with energy access gaps. It will deliver 30MWac of additional clean power to Zimbabwe’s national grid, promoting sustainable economic development without compromising the country’s climate goals. By piloting the government’s standardized project documentation, Vungu Solar also has the potential to transform Zimbabwe’s energy market by unlocking further private sector finance for solar IPPs in the future.”
The Government of Zimbabwe selected Vungu Solar as its preferred bidder in a national pilot program aimed at developing standardized documentation for solar IPPs. With support from the Africa Legal Support Facility, the Ministry of Energy and Power Development prepared a standardized Power Purchase Agreement (PPA), Government Project Support Agreement, and central bank undertaking, which are currently being negotiated with Vungu Solar.
Culven Chipfumbu, Director of Energywise Equipment, stated, “The solar power plant will produce 30MWac of electricity, equivalent to carbon emission savings of approximately 75,000 tonnes per annum, significantly contributing to Zimbabwe’s Intended Nationally Determined Contributions to carbon emission reduction. Vungu Solar intends to be gender-sensitive and disability-inclusive in its staff recruitment plan.”
Paul Webb, Managing Director of Impala Power, added, “In addition to directly contributing to the vital expansion of power generation in Zimbabwe, we hope that Vungu Solar will pave the way for the international financing of all renewable energy projects in the Ministry of Energy’s project pipeline. Ensuring the availability of clean electric power to households and industry would provide a massive boost to Zimbabwe’s socio-economic development.”
The Vungu Solar project aims to contribute to the achievement of Sustainable Development Goal 7 (Access to Affordable Clean Energy) and Sustainable Development Goal 13 (Climate Action).
Having advanced negotiations with Zimbabwe Electricity Transmission and Distribution Company around a bankable 25-year PPA, Vungu Solar is expected to pilot the use of the country’s new standardized documentation. It is anticipated that this pilot will enable the government to attract future private sector investment to grow Zimbabwe’s renewable energy sector.
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Source link : https://solarquarter.com/2024/07/17/infraco-africa-invests-to-pioneer-zimbabwes-first-solar-ipp-project-financed/
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Publish date : 2024-07-17 03:28:14
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