Gwanda solar investor commends Government support

INDEPENDENT power producer, Matshela Energy Limited, which is targeting to set up a
100MW solar plant in Gwanda, Matabeleland South, says it has been energised by the
Government’s commitment towards speedy implementation of the project.

On its part, the firm says it is keen to conclude the Government Support Agreement within
the energy regulator, Zimbabwe Energy Regulatory Authority (Zera) timelines.

Recently, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC)
signed a power purchase agreement with Matshela Energy Limited for the 100MW solar
project.

The firm is licensed in terms of Section 42 of the Electricity Act to construct, operate and
maintain the 100MW solar power station and associated battery storage facility of 40MWh
at Gwanda Timber Farm.

Giving an update on the project’s implementation status, Matshela Energy managing
director, Mr Matshela Koko, told Business Chronicle that the Ministry of Energy and Power
Development and the Ministry of Finance and Economic Development have shown the “right focus” on the project success.

“For the very first time, I sense the Ministry of Energy and Power Development and the
Ministry of Finance and Economic Development have the right focus and they appreciate
what it takes to take the Gwanda solar plant forward, including similar projects,” he said.

“We are committed to concluding the Government Support Agreement within the Zera
timeline. We look forward to hearing from the two ministries on when the Government
support agreement will be ready to be sent to us,” said Mr Koko.

THE Zimbabwe Energy Regulatory Authority (Zera)
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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.

Previously, Mr Koko indicated to the publication that construction is expected to start in
June next year with the critical path being the Government Support Agreement.

The power project is expected to create 1 000 job opportunities at the peak of the
construction period.

When the solar project goes live, an estimated 880 000 households will be catered for per
annum. – The Chronicle