Sans Souci Farm, Mashava, Masvingo Province — Zimbabwe
Camelzone Solar is a 60 MWp DC / 50 MW AC ground-mounted photovoltaic IPP being developed by Camelzone Enterprises (Pvt) Ltd (trading as Camel Energy) at Sans Souci Farm, Mshandike resettlement, approximately 6 km west of Mashava town in Masvingo Province, Zimbabwe. The 165-hectare project site is situated in one of Zimbabwe's highest-irradiation provinces, with single-axis horizontal trackers providing the technology backbone. The project is scalable to 100 MW AC in a second phase, and the Grid Impact Assessment (GIA) has already been approved for this full 100 MWac capacity, securing grid access for future expansion without requiring a new grid study.
What distinguishes Camelzone Solar from most sub-Saharan African solar projects at a similar stage of development is the combination of a signed, ZERA-approved 25-year take-or-pay PPA with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC), and a ZERA Generation Licence (GC0108/2020) valid until 2 October 2045. Both instruments are in place. The project is also uniquely advantaged by its grid connection geometry: the Tokwe 132kV substation operated by ZETDC is located less than 500 metres from the plant boundary — an exceptionally short connection distance that reduces transmission line costs to an estimated USD 3.792 million and minimises technical losses.
The Camelzone Solar plant is designed as a ground-mounted utility-scale installation using single-axis horizontal trackers (SAT) with Longi Solar LR5-72HBD-540M modules — a high-efficiency bifacial half-cut PERC module rated at 540W per panel. Single-axis trackers at the latitude of Masvingo (~20°S) provide meaningful yield uplift versus fixed-tilt, improving energy output during morning and afternoon hours and increasing the plant's daily generation window. The total installed DC peak power is 60.03 MWp, connected to 228 Sungrow SG250HX-IN-20 string inverters with a combined nominal AC output of 50,160 kVA (50.16 MW AC), establishing the contracted capacity of 50 MW AC with ZETDC.
The project's most significant technical advantage is its proximity to the national grid. The ZETDC Tokwe 132kV Substation is located less than 500 metres from the plant boundary — an exceptionally short connection distance for a project of this scale in sub-Saharan Africa. The recommended grid connection scope consists of: 5 km of new 132kV single-circuit transmission line and two 132kV line bays (one at the plant step-up substation and one at Tokwe Substation), estimated at USD 3.792 million. The Grid Impact Assessment (GIA), conducted by the ZETDC System Development Division in May 2016, has been approved for the connection of up to 100 MWac — covering both Phase 1 and the planned Phase 2 expansion without requiring a repeat grid study.
The developer's draft financial model, as presented in the investment memorandum, projects strong profitability metrics anchored by the USD 0.0895/kWh PPA tariff and a modelled LCOE of USD 0.0350/kWh — implying a margin of 5.45 US cents/kWh (155.52%). Year 1 revenue is projected at USD 12.31 million, with a project-level IRR of 15.48% and a net present value of USD 105.2 million on a USD 64 million total investment. The installed cost per kWp is stated at USD 1,100/kWp, implying a total EPC cost of approximately USD 66 million — suggesting the USD 64 million financing figure may be a slightly compressed estimate, or that the developer is contributing equity to bridge the gap. Investors should request the complete financial model, including assumptions on discount rate, degradation, O&M costs, debt service structure, and currency treatment.
| Financial Metric | Value (Developer Model) | Notes |
|---|---|---|
| Total Financing Required | USD 64,000,000 | Debt + equity — structure to be defined with investors |
| Installed Cost | USD 1,100/kWp | Implies ~USD 66M total EPC cost at 60.03 MWp [Inferenza] |
| Year 1 Revenue | USD 12,313,373 | Based on PPA tariff × contracted energy volume |
| Project IRR | 15.48% | [Non verificato] — developer draft model, not independently audited |
| Net Present Value (NPV) | USD 105,205,162 | [Non verificato] — discount rate assumption not disclosed |
| LCOE | USD 0.035/kWh (3.50 ¢) | [Non verificato] — developer model; no independent verification |
| PPA Tariff Margin | 5.45 ¢/kWh (155.52%) | PPA tariff 8.95 ¢ minus LCOE 3.50 ¢ |
| PPA Tariff (ZERA Approved) | USD 0.0895/kWh | 25-year take-or-pay — ZERA Board approved 20 Jul 2021 |
The Camelzone project operates within Zimbabwe's electricity sector legal framework, governed by the Electricity Act [Chapter 13:19], the Zimbabwe Energy Regulatory Authority Act, and the country's IPP procurement framework for bilateral BOOT projects. The project has achieved the two most critical milestones — a signed PPA and an issued Generation Licence — but several material pre-conditions for Financial Close remain outstanding, including: the long-term land lease (currently at provisional offer letter stage), the Government Implementation Agreement (GIA), the Transmission Connection Agreement (TCA), and the completion of the full Environmental Impact Assessment (EIA). Each of these items represents a gating condition for lenders and equity investors.
| Agreement / Licence | Counterpart / Authority | Status |
|---|---|---|
| Power Purchase Agreement (PPA) | ZETDC (Zimbabwe Electricity T&D Co.) | ✅ SIGNED — 25 years, take-or-pay, US$0.0895/kWh, expires 2 Oct 2045 |
| Generation Licence | ZERA (Zimbabwe Energy Regulatory Authority) | ✅ ISSUED — Licence GC0108/2020, 25 years, expires 2 Oct 2045 |
| Grid Impact Assessment (GIA) | ZETDC System Development Division | ✅ APPROVED — for up to 100 MWac connection at Tokwe 132kV Substation |
| Provisional Institutional Offer Letter (Land) | Ministry of Lands, Agriculture, Water & Rural Resettlement | ✅ RECEIVED — 165 ha at Sans Souci Farm (State Land) |
| Long-Term Land Lease | Ministry of Lands | ⏳ PENDING — substantive offer letter + long-term lease issued once development commences |
| Government Implementation Agreement (GIA) | Government of Zimbabwe / Ministry of Finance | 🔴 OUTSTANDING — includes Project Development Support Agreement and RBZ forex undertaking — critical for investment |
| Transmission Connection Agreement (TCA) | ZETDC | 🔴 OUTSTANDING — required as a condition for GIA finalisation |
| Environmental Impact Assessment (EIA) — Full Report | ZINWA / Environmental Management Authority (EMA) | ⏳ EIA PROSPECTUS PREPARED (Jun 2019 — Hazwin Consultancy) — full EIA report required and not yet completed |
| Resettlement Action Plan — 19–20 Families | Ministry of Lands / Project Company | ⏳ Community awareness completed — compensation and physical relocation not yet executed |
| EPC Contract (Provisional) | China Energy | ⚡ PROVISIONAL — signed; binding fixed-price contract to follow at Financial Close |
The Camelzone project's risk profile is shaped by an unusual combination: an exceptionally strong commercial foundation (signed PPA, issued licence, approved GIA, exceptional grid proximity), alongside a set of pre-Financial Close gaps that must be resolved before capital can be committed. The primary risks are institutional and sovereign rather than technical or commercial: ZETDC payment capacity, the outstanding Government Implementation Agreement and RBZ forex undertaking, land lease formalisation, and the incomplete EIA and resettlement process are the four items that will determine whether lenders and equity investors can proceed.
| Risk Category | Description | Rating | Mitigation |
|---|---|---|---|
| Commercial Foundation — PPA & Licence | 25-year take-or-pay PPA signed at 8.95 ¢/kWh (ZERA approved). Generation Licence issued. GIA approved for 100 MWac. These are confirmed, signed instruments. | Strong Positive | No mitigation needed — these are the project's strongest bankability credentials. Verify executed document originals and ZERA licence register confirmation. |
| ZETDC Payment Risk / Creditworthiness | ZETDC is a state-owned utility in a country with a history of energy sector fiscal stress. Payment delays or defaults by ZETDC are a credible risk, particularly given Zimbabwe's foreign currency constraints. | High | Government Implementation Agreement (GIA) with sovereign guarantee and RBZ forex undertaking is the standard mitigation. MIGA political risk insurance and/or DFI participation (AfDB, IFC, DFC) are essential for lender comfort. PPA Deemed Energy Payment provisions protect against curtailment-related non-payment. |
| Government Implementation Agreement (GIA) Outstanding | The GIA — including the Project Development Support Agreement and the RBZ Undertaking for forex convertibility and repatriation — has not yet been finalised. Without it, no foreign equity or debt investor can confidently repatriate returns. | High — Critical Path | Confirm GIA negotiation status, responsible ministry counterpart, and timeline to execution as the first diligence priority. GIA finalisation typically requires government legal counsel, treasury, and central bank alignment and can take 12–24 months. |
| Land Lease Formalisation | The project holds only a provisional offer letter for the 165 ha state land. The substantive long-term lease will only be issued once development commences — creating a chicken-and-egg dependency with investor commitment. | Medium | Negotiate a binding land undertaking from the Ministry of Lands conditional on Financial Close rather than commencement of construction. Confirm lease term aligns with PPA tenor (25 years). Lenders require a confirmed leasehold or legal opinion on priority of land rights before Financial Close. |
| EIA — Full Report Outstanding | Only an EIA Prospectus (June 2019) has been prepared. A full EIA report and approval from EMA (Environmental Management Authority of Zimbabwe) is required before construction can commence. The EIA process in Zimbabwe typically takes 12–18 months. | Medium | Commission the full EIA immediately using an EMA-accredited consultant. Begin the EIA process in parallel with GIA and financing negotiations to avoid sequential timeline compression. IFC PS1 and PS3 (biodiversity) standards should be integrated into the EIA scope if DFI participation is targeted. |
| Resettlement of 19–20 Families | Physical relocation of rural families from the site has not yet been executed. Under IFC Performance Standard 5, lenders require a complete Resettlement Action Plan and substantially complete resettlement before construction commences. | Medium | Commission a full RAP compliant with IFC PS5 and the World Bank OP 4.12. Engage independent social consultant for community liaison, grievance mechanism establishment, and livelihood restoration planning. Timeline: 12–18 months from commission to completion. |
| Financial Model Not Independently Verified | The 15.48% IRR and USD 105M NPV are developer draft projections. The USD 1,100/kWp installed cost is above current market benchmarks for tracker installations in the region. Key assumptions (yield, degradation, O&M, debt structure) are not disclosed. | High — Unverified | Commission independent technical and financial model audit from qualified advisor (e.g., PwC, KPMG, Mott MacDonald, DNV) as a condition of any indicative term sheet. Focus specifically on installed cost benchmark, energy yield verification, and DSCR sensitivity analysis. |
| Zimbabwe Sovereign Risk | Zimbabwe has experienced hyperinflation, currency reform, and political instability. Despite improvement since 2018, country risk remains elevated with a history of difficulty for foreign investors repatriating capital and returns. | High | GIA with RBZ undertaking is the principal structural mitigation. MIGA PRI insurance covers transfer restriction, expropriation, and political violence risks. DFI co-investor participation provides deterrence. USD-denominated PPA protects against currency mismatch at the project level. |
| Grid Connection Proximity | The Tokwe 132kV substation is less than 500m from the site — a materially positive technical factor that reduces connection cost, technical losses, and right-of-way acquisition complexity. | Strong Positive | Confirm substation available capacity for 50 MW injection via TCA negotiation. Phase 2 expansion to 100 MW already GIA-approved, which is a valuable optionality for investors targeting a second close. |
The complete investment memorandum, PPA, ZERA Generation Licence, Grid Impact Assessment, provisional EPC term sheet, and developer financial model are available to credentialed investors under NDA. Contact Studio Santi Capital to initiate engagement with Camelzone Enterprises.