Financial Support of $250m Secured for Kariba 250MW Floating Solar Project; Funding Likely to Silence Environmental Activists Concerned Over Hwange Expansion
In a significant stride towards renewable energy, Zimbabwe is set to deploy floating solar panels at Kariba Dam, with the project currently in the financing stage. The African Export-Import Bank (Afreximbank) has secured $250 million for the initiative, which aims to generate 250 MW of power initially, with plans to expand up to 1 GW in the future [1][2][3].
The project is being spearheaded by Green Hybrid Power Private Limited (GHP), a subsidiary company of businessman Eddie Cross. GHP is collaborating with regional power authorities, such as the Zambezi River Authority, and international development banks, including the African Development Bank and Zambia Electricity Supply Corporation (ZESCO) [1][3][4].
The Intensive Energy User Group (IEUG), a voluntary association of private organisations, is also involved in the project. The IEUG, which represents approximately 40% of domestic power demand in Zimbabwe, with about 90% of its members being mining companies, plans to develop a 250 MW solar plant at the Kariba Dam [4].
The IEUG holds a 20-year Power Purchase Agreement (PPA) with an electricity off-taker, likely ZESA or other large power consumers. Under the PPA, the IEUG will sell electricity generated by the floating solar project to the off-taker at agreed terms [4]. The PPA is a crucial document in renewable energy projects, providing financial certainty to both parties and reassuring lenders like Afreximbank that the project has a stable income stream [5].
The IEUG has been trading power successfully and profitably for the last 19 months [4]. Edward Cross, chairman of the IEUG, claims they received "oversubscribed" interest for financing, indicating a positive outlook for the project [6]. However, the IEUG has raised concerns about the reliability of Afreximbank, given past associations with unsuccessful projects [7].
The project is part of a larger planned development initially targeting 500 MW in its pilot phase, with potential expansion up to 1 GW [1][3]. Construction is expected to commence in the second quarter of 2026, with completion by mid-2027 for the pilot phase [2].
Environmental considerations are being addressed, with ongoing investigations into the ecological impacts of floating photovoltaics [2]. The project represents a significant renewable energy expansion for Zimbabwe, leveraging Lake Kariba’s vast surface for hybrid hydro-solar power generation and intended to reduce electricity imports by boosting local supply [1][3][4].
The success of the initial 250 MW Kariba Floating Solar Project could potentially expand to 1,000 MW of solar capacity, depending on its success [8]. The Africa Investment Forum in Morocco was the venue for the presentation IEUG made to secure funding [9]. As the project progresses, it is expected to contribute significantly to Zimbabwe’s domestic power generation, helping to close a supply gap as demand reaches about 2,200 MW while current generation often fluctuates between 1,000 and 1,400 MW [3][4].
References: [1] https://www.afreximbank.com/news/african-export-import-bank-afreximbank-signs-250-million-agreement-support-kariba-floating-solar-project [2] https://www.esv-zimbabwe.co.zw/news/floating-solar-project-at-kariba-to-boost-local-supply/ [3] https://www.newzimbabwe.com/2021/03/25/kariba-floating-solar-project-to-produce-500mw-of-power/ [4] https://www.theindependent.co.zw/2021/03/25/kariba-floating-solar-project-to-produce-500mw-of-power/ [5] https://www.pwc.com/gx/en/services/deals/project-finance/publications/ppa-power-purchase-agreements-renewable-energy-projects.html [6] https://www.theindependent.co.zw/2021/03/25/kariba-floating-solar-project-to-produce-500mw-of-power/ [7] https://www.theindependent.co.zw/2021/03/25/kariba-floating-solar-project-to-produce-500mw-of-power/ [8] https://www.theindependent.co.zw/2021/03/25/kariba-floating-solar-project-to-produce-500mw-of-power/ [9] https://www.theindependent.co.zw/2021/03/25/kariba-floating-solar-project-to-produce-500mw-of-power/
- By collaborating with international development banks, such as the African Development Bank and Zambia Electricity Supply Corporation (ZESCO), the Afreximbank-funded renewable energy project is leveraging science and technology to generate 250 MW of power from floating solar panels at Kariba Dam.
- The Intensive Energy User Group (IEUG), a voluntary association of private organizations, is involved in the project to develop a 250 MW solar plant at the Kariba Dam, representing a significant investment in environmental-science for the benefit of the Zimbabwean environment and economy.
- To ensure financial success, the IEUG has a Power Purchase Agreement (PPA) with an electricity off-taker, providing a stable income stream and critical assurance for lenders like Afreximbank, while also committing to selling generated power to the off-taker at agreed terms, contributing to Zimbabwe's domestic power supply and reducing energy imports.
