Harare Greenlights Phased 5MW Solar Power Project at Crowborough

Harare City Council has approved a scaled-down 5MW solar power project at Crowborough Farm, a major shift from the original 100MW plan, following months of deliberations, feasibility assessments, and doubts over the investor’s financial capacity.

The Joint Finance and Development and Business Committee, chaired by Councillor S.M. Manyenga, resolved that:

“Council approves the feasibility study report and recommendations, including the phased implementation of a 5MW solar plant on eight hectares at Crowborough Farm.”

The decision also mandates the Acting Town Clerk to negotiate a 15-year Build-Operate-Transfer (BOT) agreement and a Power Purchase Agreement (PPA) with Earth Resources Holdings (Pvt) Ltd.

However, the green light is still subject to approval by the Minister of Local Government and Public Works and the Public Private Partnership Committee under ZIDA.

This comes after a rocky journey dating back to 2023, when Earth Resources Holdings pitched a 50MW solar proposal, which later doubled to 100MW before being shot down due to financial viability concerns.

In his latest report dated March 17, 2025, the Acting Town Clerk revealed that Earth Resources Holdings had failed to demonstrate the financial muscle required to back the original $168 million proposal.

With a proposed 80:20 debt-equity ratio, the investor would have needed to secure over $134 million in debt, a figure deemed unattainable under current conditions.

“The investor’s financial appraisal returned negative, which casts doubt on the viability of the original 100MW project,” the Town Clerk noted.

“The recommendation was to scale down to 5MW implemented in 1MW phases to mitigate risk and financial exposure.”

The project is earmarked to supply power to Morton Jaffray Water Works a critical lifeline for Harare’s water supply.

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Crowborough Farm was identified as an optimal location due to the availability of unencumbered land and proximity to a ZESA substation.

However, cracks emerged when it was discovered that Earth Resources’ reference projects in Chiredzi were not of equivalent scope.

Council was later told those were carried out in South Africa, casting further doubt on the company’s technical credentials.

While the investor requested payment in U.S. dollars, the City of Harare currently pays ZESA in local currency, creating uncertainty over the currency framework of the PPA.

“The tariff of 11 cents/kWh was agreed upon and deemed fair, but the foreign currency payment demand remains a sticking point,” the report highlighted.

The committee also noted that the City’s Energy Taskforce had identified up to 100 hectares at Crowborough for renewable energy developments suggesting room for future expansion if the initial 5MW phase proves successful.

Despite the turbulence and reduced ambition, Council sees the phased project as a foot in the door for sustainable energy initiatives in the capital.

What remains now is for the Ministry and ZIDA to bless the deal a make-or-break moment for Harare’s long-delayed energy transition.