HomeIndustry SectorsFinance and PolicyMozambique starts construction on first solar energy storage IPP

Mozambique starts construction on first solar energy storage IPP

Globeleq, Source Energia and Electricidade de Moçambique (EDM) have started construction on the first IPP in Mozambique to integrate utility-scale energy storage with a solar PV plant.

The 19MWp (15MWac) solar PV plant and 2MW (7MWh) energy storage system will be located in the Tetereane District of the city of Cuamba in the Niassa province, about 550kms west of the coastal town of Nacala. Electricity will be sold through a 25-year power purchase agreement with EDM.

The $32 million project will contribute to the Mozambique government’s ‘Energy for All’ strategy, aiming to have universal energy access by 2030.

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The project is expected to receive $19m of debt funding from the Emerging Africa Infrastructure Fund, which is a member of the Private Infrastructure Development Group (PIDG). The project will also receive $7m in grant funding from the PIDG’s Viability Gap Funding grant facility and $1m from CDC Plus to enable an affordable tariff and the energy storage system.

Nnenne Iwuji, British High Commissioner to Mozambique, commented: “The UK Government is actively partnering with Mozambique on the development of its renewable energy potential, through investments such as this, as well as through our BRILHO-Energy Africa programme which encourages private sector investment in off-grid energy solutions.  The UK looks forward to continuing to work closely with Mozambique in the run-up to COP26 and beyond, to identify and support opportunities for sustainable, long-term green growth, investment and jobs.”

Mozambique leads the way for future utility-scale energy storage in the region

Jonathan Hoffman, Globeleq’s chief development officer called the project a trailblazer for future utility-scale energy storage not only in Mozambique but the region. “Cuamba Solar, along with all our energy projects we are working on, cements our ongoing commitment to contribute to the long-term energy security and development of the country on a low carbon pathway.”

Chris Chijiutomi, Head of Infrastructure Equity, CDC Group said: “We are delighted to be supporting Mozambique’s demand for new renewable energy supply across the country; 7 in 10 people in Mozambique today do not have access to electricity and 53% of firms report electrical outages. Robust storage technologies are fundamental for the transition to clean energy.”

Emilio Cattaneo, Head of PIDG TA, also commented: “Promoting battery storage solutions alongside green, renewable electricity generation plants is of enormous importance to Africa’s economic development and the world’s efforts to manage climate change.”

Globeleq and Source Energy are also collaborating on one of the country’s first wind projects which will be located near the town of Namaacha, 40kms west of Maputo. Globeleq recently pre-qualified to compete for the 40MWp Dondo solar power project in Sofala Province and has been selected for two 15MWp solar projects in neighbouring country Eswatini.

Pedro Coutinho, Source Energia founding partners and managing director said they were excited to have worked on such a significant milestone in Mozambique and committed to developing projects which are in line with the country’s energy goals for universal access led by EDM.

It is expected the project would need about 100 workers during construction, many of whom will be hired from the local community. Spanish company TSK has been appointed as project EPC contractor. Globeleq will oversee the construction of the eventual operation of the power plant, supported by Source Energia.

Theresa Smith
Theresa Smith is a Content Specialist for ESI Africa.