Government yesterday announced the standardised Government Implementation Agreement (GIA), a policy aimed at boosting solar power production through supporting solar Independent Power Producers’ (IPPs) projects in the country as it aims to produce about 1.100 megawatts from renewable energy.
The policy was announced by the Minister of Finance and Economic Development Professor Mthuli Ncube as a strategy aimed at fostering the production and use of renewable sources on and off the grid.
“The strategy clearly outlines that Government policy will promote independent grid operators who want to contribute power into the national grid and to their clients.
To this end, Government intends to speed up investment by the Independent Power Producers (IPPs) Projects with main focus on solar, “ said Professor Ncube.
In a statement, Professor Ncube said the GIA has there main components which are, project development support agreement, Power Purchase Agreement, and The RBZ Undertaking for Foreign Currency Convertibility and Transfer.
“I am delighted to announce the finalisation of the GIA with these 3 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.
“The solar IPPs projects are at various stages in their investment processes. Some have their PPA negotiated with ZETDC, which Government is now extending Government Guarantees,” he said.
“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 licencing; 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,” said Professor Ncube.
Among the IPPs that have been recommended for government support are Matshela Energy which will generate about 150 megawatts from solar energy. The company will operate from Matabeleland South.
There are also other IPPs that were recommended by government that are expected to produce about 1000 megawatts of power.