Zimbabwe's drive towards increased renewable energy generation received a significant boost this week after ZimGreenCo and Dolcin Trading signed a 25-year Power Purchase Agreement (PPA) for a major solar power project in Mashonaland West Province.
The agreement was signed during the Africa Energy Forum in Cape Town, South Africa and paves the way for the development of the 50MWac Dolcin Trading Solar Photovoltaic (PV) Plant near Chegutu.
Developed by South African renewable energy company Sigma Solar Africa, the project is expected to become one of Zimbabwe's largest grid-connected independent power producer (IPP) solar facilities.
Under the agreement, ZimGreenCo will purchase electricity generated by the plant and supply it to large energy consumers in Zimbabwe helping to improve electricity availability and support economic activity.
Keep up with the latest headlines on WhatsApp | LinkedIn
The deal builds on a Systems Operations Agreement (SOA) signed in 2024 between ZimGreenCo Power Services (Private) Limited and the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), which allows the use of the national grid to transmit power generated by private producers.
Through the arrangement, ZimGreenCo will pay ZETDC for system operation services, a model that stakeholders say demonstrates the viability of an open-access electricity market in Zimbabwe.
Speaking after the signing, ZimGreenCo Managing Director Lion Mashiri said the agreement highlighted the importance of partnerships in addressing Zimbabwe'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. This agreement shows that an open access regime can work in practice: a privately developed solar plant, a creditworthy offtaker and the national utility each playing their part.
"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 and supplying the large energy users who underpin the country's economy," said Mashiri.
The project is expected to contribute towards improving power security in Zimbabwe while supporting the country's transition to cleaner sources of energy.
ZimGreenCo said its participation in the initiative reflects its commitment to working with private developers and public utilities to strengthen electricity supply and expand renewable energy generation.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
For Dolcin Trading, the long-term agreement is expected to provide the financial certainty required to attract investment and move the project towards construction.
Gareth P Warner, Director of Dolcin Trading Limited, said securing a long-term buyer for the electricity generated by the plant was critical to the project's success.
"A 25-year offtake agreement with a creditworthy buyer is what makes a project of this scale financeable. 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 and the delivery of clean power to Zimbabwean consumers."
The agreement comes as Zimbabwe continues to pursue investment in renewable energy projects to address electricity shortages and diversify its energy mix.
Energy experts say independent power producers are expected to play an increasingly important role in meeting the country's growing demand for electricity, particularly through solar and other renewable energy technologies.
Once completed, the Dolcin Trading Solar PV Plant is expected to contribute significantly to Zimbabwe's renewable energy capacity while supporting industrial consumers and broader economic growth.
