The Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has signed a power purchasing agreement with South African independent power producer, Matshela Energy Limited, which will pave way for the construction of a 100-megawatt solar plant in Gwanda.
Matshela Energy managing director, Matshela Koko, who is a former Eskom interim chief executive, announced the signing of the deal in a statement released on 04 August 2022. Said, Koko:
Matshela Energy is pleased to announce that the power purchase agreement between the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) and Matshela Energy (PTY) Limited for the 100 MW Solar PV Power Plant has been concluded.
Matshela Energy is licensed in terms of section 42 of the Electricity Act to construct, own, operate, and maintain the 100 MW Solar PV Power Station and associated battery storage facility with a capacity of 40 MWh at Gwanda Timber Farm, Gwanda in Matabeleland South Province.
This is a landmark achievement by Matshela Energy, the Zimbabwe Energy Regulatory Authority (ZERA), ZETDC, the Department of Energy and Power Development in Zimbabwe, and other related parties.
With the power purchase agreement signed, we are working towards financial close under ZERA’S stipulated timelines.
According to the signed power purchase agreement, the Government Support Agreement must be concluded within the next 180 days from the signature date.
A Government Support Agreement is an agreement between the Government of Zimbabwe acting through the Ministry of Finance and Economic Development and the independent power producer (IPP) that set out terms on which the Government of Zimbabwe provides incentives and assistance to the IPP.
We are confident that the Government Support Agreement will be concluded within the stipulated period.
Koko said will be one of the largest renewable energy and storage in Zimbabwe and the region. He said:
The 100 MW Solar PV and 40 MWh storage project signifies a change within the Southern African energy landscape, and it will be one of the largest renewable energy and storage in Zimbabwe and the region.
We have come a long way since we started with this project in 2018. We shall not falter.
The people of Gwanda have been good to us, and we owe it to them to succeed.