Electricidade de Moçambique (EDM) and partners Globeleq - Africa's leading independent power generation company - and Source Energia - an independent power project development company from Lusophone Africa - have announced a $36 million agreement to build the Cuamba Solar Power Plant project in Niassa, in the north of the country.

The Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG), has provided 19 million US dollars in debt financing. PIDG's Viability Gap Funding (VGF), meanwhile, provided seven million US dollars to secure an affordable rate for EDM. CDC Plus, the CDC Group's technical assistance institution, meanwhile, has provided a grant of one million US dollars, which will help finance energy storage batteries.

The project is expected to provide solar power through a purchase agreement with the Mozambican side for a period of 25 years.

For the Chairman of the Board of EDM. Eng. Marcelino Alberto, the pursuit for the project's development demonstrates the Government's commitment to seek sustainable solutions to accelerate energy access to Mozambicans.

And, in this sense, "EDM places itself at the forefront of the energy transition in alignment with the Paris agreements to decrease global warming," he said.

The plant is expected to come online in the first half of next year, and is expected to produce enough energy to benefit about 21,800 people, as well as reduce the amount of CO2 emissions by 172,000 tons.

Representing the project owners, Globeleq's CEO Mike Scholey was proud that financial closure was achieved for the first solar storage and energy project in Mozambique.

"We continue to support and believe in the vision of the Government of Mozambique in its initiatives to support the Paris Agreement and provide Mozambicans with clean, quality alternative energy options," he said.

The Cuamba Solar Power Plant project, whose construction will be the responsibility of the Spanish company TSK, foresees the hiring of about one hundred workers in the construction phase and priority will be given to hiring local labor.

Source: letter