Mozambique is planning to develop its first solar photovoltaic (PV) power plant, ESI-Africa reported.
The project will be funded by a consortium of financiers. The project will entail a total investment of $80m. The International Finance Corporation (IFC) has promised to invest $19m which is part of a $55m package to support the new utility in Mocuba, Projects Today informed.
The funds also include an investment from Climate Investment Funds worth $19m and a loan of up to $17m. 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% share, KLP Norfund Investments (22.5 %) and EDM (25%) will provide equity.
The plant is expected to generate 77,000 MWh per year of electricity to the northern regions of the country.