Farai Mabeza, Senior Staff Writer 
FINANCE minister Mthuli Ncube says the government has come up with a standardised implementation agreement (GIA) for all solar independent power producer (IPP) projects with 1000MW worth of projects already identified.
The projects, which have been recommended for government support, are worth US$1 billion. This comes at a time the country is reeling from persistent power cuts, with the main hydroelectricity generation plant at Kariba battling drought-induced water shortages while various thermal power stations are plagued by frequent breakdowns.
Finance Minister, Mthuli Ncube
“The government intends to speed up investment by IPPs, with the main focus on solar projects. A key ingredient to the successful implementation of the solar IPPs projects is a bankable GIA with an economic tariff,” Ncube told a press briefing in Harare this week.
“The GIA has three major components; a project development support agreement, a power purchase agreement; and the Reserve Bank of Zimbabwe’s undertaking for foreign currency convertibility and transfer. “I am delighted to announce the finalisation of the GIA with these three components through the work of the ministry of Energy and Power Development, Attorney General, Reserve Bank of Zimbabwe and the ministry of Finance and Economic Development.”
According to Ncube, the identified IPP solar projects are at various stages in their investment processes. “Government guarantees the economic tariff to qualifying IPPs solar projects that would have passed the screening process.
“The screening process involves the following; applying for the Zera licensing; negotiating for a PPA; submitting proof of funding; and after an IPP has successfully completed the screening process, a GIA is signed and the investor is ready to invest,” Ncube said.
The government crafted a National Renewable Energy Policy strategy which sets to achieve and install renewable capacity of 1 100 MW or 16,5 percent of total electricity by 2025. By 2030, the target is that the installed renewable energy capacity should be 2 100MW or 26,5 percent of the overall electricity supply.
The policy is aimed at fostering the production and use of renewable sources in the grid and off-grid. It aims to raise the share of renewables in the energy mix by creating incentives from the supply, to distribution and demand, in both urban and rural settings.
