Zimbabwean energy company, Solgas Energy, has connected the Cross Mabale 5MW solar energy plant in Hwange to the country’s national grid. The project is the third independent power producer developed solar project to be connected to Zimbabwe’s grid, and the country’s biggest to date.
“5MW may seem small as compared to other projects in the region and the world. However, a journey of a thousand miles begins with a single step. So, l believe in the context of our country and the journey this young Republic is on, it speaks volumes of our potential and what we can achieve when we work together,” said the CEO of Solgas Energy, Kingston Kamba.
The Cross Mabale solar energy facility was funded by Old Mutual for an investment of US$7,3 million. South African companies Soventix, Proconics and Excess Africa were the technical partners during the construction of the first phase of the project. The plant will sell clean power to the Zimbabwe Electricity Transmission & Distribution Company (ZETDC) under a 25-year power purchase agreement (PPA).
Solgas Energy plans to expand the solar energy plant with an additional 10 MW in the second phase of the project, increasing capacity to 15MW. The third and final phase of the renewable energy project will see the plant increase its overall capacity to 50 MW.
Zimbabwe’s renewable energy landscape
The recently connected project was granted “National Project Status” by Zimbabwe’s Ministry of Finance and Economic Development. Projects that are granted the national project status are given preferential treatment including exemption from paying import duties and other taxes.
For renewable energy projects, IPPs are given 5 year tax holidays in Zimbabwe and awarded the national project status. The country is offering massive incentives to renewable energy investors in an effort to lure renewable energy investment that has largely skirted the country due to political and economic risks associated with the country.
Zimbabwe launched its National Renewable Energy Policy (NREP) in 2019. Under this policy, the country hopes to have renewable energy (excluding hydro) constitute 16.5% of the total power generation capacity by 2025, and increase to 26.5% by 2030.
