Gutu council seals $120m solar deal

Runesu Gwidi in GUTU
Gutu Rural District Council has sealed a $120 million deal with a UK-based solar firm, Hive Energy, for the construction of a 100 megawatt solar plant in the Chatsworth area near Mpandawana.

The solar project that will be rolled out in partnership with a local firm, Ridgewell Investments, is expected to create more than 2 500 direct jobs.

Gutu RDC chief executive Mr Alexander Mtembwa said feasibility studies for the multi-million dollar power project have since been completed.

He said his council has already inked a Memorandum of Understanding with the UK firm and its local partner paving the way for commencement of works.

Under the deal, Gutu RDC, through its subsidiary, Gutu Power Company, would avail land for the project at Chatsworth Farm near Mpandawana, while Ridgewell Investment and Hive Energy would provide technical assistance, funding and management for the entire project.

Power produced from the project will be sold to ZESA and other power utilities within the SADC region.

“The benefits of this project (solar power plant) are numerous. Firstly, by selling power to ZESA, the project will cushion the power utility from the problem of foreign currency shortages it experiences when importing power.

“Other buyers of the power produced at the Chatsworth plant will also boost Gutu RDC revenue inflows through payment of levies,” said Mr Mtembwa.

He said the solar plant project, which is expected to take off in the next seven months, would immensely contribute to the growth of the national economy.

“Government will benefit from taxes realised from prospective buyers of power generated from the plant and most importantly, the project will significantly attract both foreign and local investment,” he said.

It is envisaged that the project, in which Gutu RDC will have a 10 percent stake, will lead to the installation of solar street lights.

Rural schools, district offices, banks, retail shops, health facilities, among others at Mpandawana will also benefit from power back up through solar energy.

“The 10 percent equity for Gutu RDC in the joint venture will earn the local authority dividends of approximately $600 000 annually,” said Mr Mtembwa.

The Gutu RDC chief said the project would also be vital for the transfer of new solar power generation technological skills from the UK to Zimbabwe.

Hive Energy has already entered into solar power generation partnerships in many countries around the globe among them Zambia and Cuba.