Modaso Energy and Tatanga Energy partner on US$300m, 228MW wind-solar hybrid project in Zimbabwe

Modaso Energy, a company belonging to MISA Group, has partnered with Zimbabwean renewable energy developer Tatanga Energy to develop the Guruve-Mazowe (Chikonyora) Hybrid Renewable Energy Project in Mashonaland Central Province, Zimbabwe. 

The project will have a combined generation capacity of 228MW, comprising 128MW of wind power and 100MWac of solar photovoltaic capacity, supported by a 50MW/100MWh battery energy storage system. The different technologies will operate through a shared 100MW connection to Zimbabwe's national electricity grid. Once operational, the facility is expected to generate approximately 550GWh of electricity annually, equivalent to around 5% of the country's current annual electricity generation. 

The development partnership brings together the local project expertise of Tatanga Energy and the technical and financial capabilities of Modaso Energy. Tatanga Energy originated the project and has been responsible for local development activities, including land arrangements, community engagement, permitting and liaison with government authorities. Its involvement dates back to 2021, when wind measurement activities began at the proposed site. Modaso Energy, meanwhile, is leading the technical development and commercial structuring of the project. It has transformed the original wind-only proposal into an integrated wind, solar and battery storage facility and is coordinating electricity offtake arrangements, contractual structures and debt financing in preparation for financial close.

MISA Group, the parent company of Modaso Energy, is supporting the development through its financial resources and international banking relationships. Regarding electricity sales, Zimbabwe's national utility, ZESA, is expected to be the project's primary offtaker. Negotiations for a Power Purchase Agreement (PPA) and a Use of System Agreement are currently under way. In addition, ZimGreenCo, the Zimbabwean subsidiary of Africa GreenCo, has signed Heads of Terms to purchase a portion of the project's electricity output under a long-term arrangement. The developers are also considering selling additional electricity through the Southern African Power Pool (SAPP), providing access to a wider regional electricity market and diversifying the project's revenue sources.

For project financing, Standard Bank has been appointed as the lead arranger for the development's debt funding, with the debt term sheet already agreed. The total investment is estimated at US$300 million and is expected to represent a significant foreign direct investment in Zimbabwe's energy sector. Financial close is targeted for mid-2027, with construction scheduled to begin immediately afterwards. The project is expected to enter commercial operation in 2029.