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First solar PV power plant to be developed in Mozambique

Tuesday, 13 Jun 2017
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Mozambique will develop its first solar photovoltaic (PV) power plant. The project will be funded by a consortium of financiers.

The project will entail a total investment of USD 80 million. The International Finance Corporation (IFC) has promised to invest USD 19 million which is part of a USD 55 million package to support the new utility in Mocuba.

The funds also include an investment from Climate Investment Funds worth USD 19 million and a loan of upto USD 17 million. Other financial support will come from the Emerging Africa Infrastructure Fund (EAIF), with a grant from the Technical Assistance Fund of the Private Infrastructure Development Group.

Mozambique's state-owned power utility, Electricidade de Moçambique (EDM) will procure the generated power through a signed 25 year power purchase agreement.

The plant will be developed by Scatec Solar, headquartered in Norway, and the local Electricidade de Moçambique (EdM) utility, along with the Norfund development finance agency. Scatec Solar has a 52.5 percent share, KLP Norfund Investments (22.5 percent) and EDM (25 percent) will provide equity.

The plant is expected to generate 77,000 MW hour per year of electricity to the northern regions of the country.

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