A major renewable energy project aimed at strengthening Zimbabwe’s electricity supply took a significant step forward this week with the signing of a 25-year Power Purchase Agreement (PPA) between ZimGreenCo and Dolcin Trading.
The agreement was signed at the Africa Energy Forum in Cape Town and will support the development of a 50-megawatt solar photovoltaic plant near Chegutu in Mashonaland West Province.
Once completed, the facility is expected to become one of Zimbabwe’s largest grid-connected renewable independent power producers.
Under the agreement, ZimGreenCo will purchase electricity generated by the solar plant and supply it to large energy users across Zimbabwe.
The project was developed by South African renewable energy company Sigma Solar Africa through its Zimbabwean project vehicle, Dolcin Trading.
The deal follows the implementation of a System Operations Agreement signed in 2024 between ZimGreenCo and the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), allowing private power producers to access the national grid under an open-access framework.
Lion Mashiri, managing director of ZimGreenCo, said the agreement demonstrates how partnerships between private developers, electricity traders and the national utility can help address the country’s energy challenges.
“We have always believed that Zimbabwe’s energy security will be built on partnership rather than public purse alone, and on markets that let private power move to where it is needed,” Mashiri said.
“This agreement shows that an open access regime can work in practice. By signing a 25-year PPA on the back of our System Operations Agreement with ZETDC, we are demonstrating a replicable model for bringing new renewable generation onto the Zimbabwean grid.”
Dolcin Trading Director Gareth Warner said the long-term agreement was essential for securing project financing.
“A 25-year offtake agreement with a creditworthy buyer is what makes a project of this scale financeable,” Warner said. “GreenCo’s structure gives our investors and lenders the long-term revenue certainty they need and allows the Dolcin Trading plant to advance towards construction.”