• ZimGreenCo and Dolcin Trading have concluded a 25 year power purchase agreement for a 50 MW solar PV project near Chegutu.
  • The project will be developed by Sigma Solar Africa under Zimbabwe’s emerging open access electricity market.
  • The agreement provides long term revenue certainty without the need for sovereign guarantees.

ZimGreenCo and Dolcin Trading have finalized a 25 year Power Purchase Agreement for the development of a 50 MW solar photovoltaic plant near Chegutu in Mashonaland West, Zimbabwe.

The project, which will be developed by Sigma Solar Africa, represents a significant step forward for Zimbabwe’s open access renewable energy market and demonstrates the growing ability of private sector projects to secure financing without relying on government backed guarantees.

Under the agreement, ZimGreenCo Power Services will act as the offtaker, providing the long term revenue certainty required by developers and financiers to reach financial close and move the project into construction.

The project is structured within a System Operations Agreement with the Zimbabwe Electricity Transmission and Distribution Company, enabling the plant to supply electricity through the national grid under an open access framework.

Industry stakeholders view the transaction as an important milestone for Zimbabwe’s energy sector. By providing a creditworthy route to market, the agreement strengthens the bankability of renewable energy projects while reducing dependence on sovereign balance sheet support.

The deal also highlights the growing viability of open access arrangements in Zimbabwe, where private power producers can generate electricity and deliver it through the grid to major energy users. This model is expected to play an increasingly important role in attracting investment, expanding generation capacity and supporting the country’s energy transition goals.

Author: Bryan Groenendaal