Business

100 MW Solar Energy PPA Signed in Zimbabwe

Former Eskom CEO’s Firm Signs PPA For One Among ‘Largest’ Solar & Storage Projects Planned In Southern Africa

Anu Bhambhani
  • Matshela Energy has secured ZETDC as the offtaker of its 100 MW solar and 40 MWh battery storage project in Zimbabwe
  • It will now need to secure Government Support Agreement that will lay down terms for incentives to be offered by the administration to the IPP
  • Project will be located Gwanda Timber Farm, Gwanda in Matabeleland South Province

The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has turned offtaker for solar power to be generated by a 100 MW PV project with 40 MWh of battery storage. The agreement was signed with Matshela Energy owned by ex-Eskom CEO Matshela Koko.

This deal now brings Matshela Energy closer to undertake construction at Gwanda Timber Farm, Gwanda in Matabeleland South Province.

According to a company statement, Matshela Energy entered the power purchase agreement (PPA) for one of the 'largest' renewable energy and storage projects in Zimbabwe and the Southern African region. The company is now securing funds and achieve financial closure to move the facility forward.

Matshela Energy is now confident of securing Government Support Agreement within the next 180 days from the PPA signature date. This will lay down terms on which the government acting through the Ministry of Finance and Economic Development will provide incentives and assistance to the independent power producer (IPP).

Koko's company had secured a license from Zimbabwe Energy Regulatory Authority (ZERA) to construct, own and operate the Gwanda Timber Farm Solar Power Plant in the country's Gwanda, to be funded privately. Back in July 2019, the company was reported to be aiming to start work on site in August 2019 and bring the project online within 12 months (see Zimbabwe Awards License For 100 MW Solar Project).

In April 2022, New Sahara Ventures was reported to be in the process of grid connecting 2 MW out of 10 MW solar power plant in Guruve & Mbire districts (see 10 MW Solar Plant Getting Ready In Zimbabwe).