Mozambique is planning to develop its first solar PV power plant. 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 and EdM, 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.
The project will be funded by a consortium of financiers that include the IFC. Total investment for the project will come to an estimated $80 million, the IFC will provide $19 million of that. Funding will also come from an investment from Climate Investment Funds worth $19 million and a loan of up to $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.