Page 5 - AfrElec 32
P. 5
AfrElec P O L I C Y AfrElec
Zimbabwe signs PPA with SA’s Matshela Energy
ZIMBABWE
THE Zimbabwe Electricity Transmission and Distribution Company (ZETDC) has signed an agreement to buy electricity to be produced by a proposed 100MW solar project southwest of the country.
ZETDC is a subsidiary of ZESA Holdings, the national electricity utility. Matshela Energy Limited (Matshela), a South African independ- ent power producer (IPP), is advancing towards financial close to build the project in Gwanda.
The project is owned by Matshe Koko, a for- mer chief executive officer of Eskom, South Africa’s power utility.
“The 100MW solar PV and 40MWh 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,” Koko is quoted as saying by state-owned daily The Chronicle.
The government of President Emmerson Mnangagwa is encouraging IPPs to comple- ment its efforts to boost power generation in Zimbabwe.
According to official statistics, South Africa generates around 1,300MW of electricity while demand exceeds 1,750MW. It fills the supply
deficit through rationing or importing elec- tricity from neighbours. The country recently signed an agreement to import 100MW from Zambia and about 150MW from Mozambique.
A $1.5bn coal-fired power plant is under con- struction at Hwange, west of the country. One unit is due to produce 300MW by November and a second one of the same capacity is sched- uled to come online by the end of March 2023.
Koko said that Matshela is working towards financial close under timelines stipulated by the Zimbabwe Energy Regulatory Authority.
“According to the signed power purchase agreement, the government support agreement must be concluded within the next 180 days from the signature date,” he said a release cited by The Chronicle.
A government support agreement is an agree- ment between the government acting through the ministry of Finance and Economic Devel- opment and the independent power producer (IPP) that set out terms under which Zimbabwe provides incentives and assistance to the IPP.
“We are confident that the government sup- port agreement will be concluded within the stipulated period,” the company said.
Week 32 11•August•2022 w w w . N E W S B A S E . c o m P5
