Zimbabwe Renewable Energy Procurement Technical Assistance Project

pipeline

The proposed project would provide transaction advisory services to facilitate a credible, transparent, and competitive procurement process for solar independent power producers (IPPs) in Zimbabwe. This follows a direct response to the Government of Zimbabwe (GoZ) request to expedite the competitive procurement of solar IPPs, leveraging feasibility studies and comprehensive transaction advisory services. The activities will capitalize on the foundations laid by earlier support of World Bank to develop a bankable solar and wind program, namely (a) a generation development plan with multiple scenarios, (b) a variable renewable energy (VRE) integration study, (c) a procurement framework analysis for renewable energy (RE) tenders, and (d) a legal memorandum for implementation of RE IPP projects. It will also capitalize on the Zimbabwe's National Integrated Energy Resource Plan, which is presently being developed by the government. The aim is to streamline and enhance the procurement process, ensuring it meets international best practices for transparency and competitiveness. By doing so, this TA aims to attract and secure high-quality, reliable solar IPPs that can contribute effectively to Zimbabwe's energy mix. The implementation of this TA will involve undertaking of Environment and Social Impact studies for potential solar project sites, tendering, evaluation of bids, and contract negotiations to secure the best outcomes for Zimbabwe's energy sector. The project will play a pivotal role in advancing Zimbabwe's commitment to expanding its renewable energy capacity, ultimately contributing to the nation's energy security, reducing dependency on imported power, and supporting sustainable economic growth. It is envisioned that the standard Power Purchase Agreement (PPA) and Government Implementation Agreement (GIA) currently under development would be implemented in this component. The project will be complemented by the ongoing Bank Executed Zimbabwe Energy Sector Programmatic Advisory Services & Analytics (PASA) - Improving the Fundamentals of the Power Sector and Achieving Universal Access in Zimbabwe (P505550), which aims to support the GoZ to develop and implement energy sector policies and strategies aimed at accelerating energy access, strengthening energy sector planning, as well as improving sector’s financial and operational performance. The proposed project will be implemented by the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) with oversight from the Ministry of Energy and Power Development (MoEPD).