On Monday, the Mozambican publicly owned electricity company, EDM, and the Swedish embassy launched a Project Preparation Programme, where Sweden will provide EDM with a $6.4 million grant.
Mozambique News Agency reported that the programme will run until 2021, and will include studies on efficiency, capacity building and environmental impact assessments in the energy sector.
Speaking at the ceremony, EDM chairperson Mateus Magala said the funding will help expand access to electricity and support bankable projects in Mozambican communities.
Magala said this is a unique experience in funding the preparation of projects, and fills a gap in the company's operations. Read more: Mozambique to sell power to Lesotho Electricity Company
Among the initiatives where studies can now advance, Magala listed the following:
- The second phase of the Mavuzi hydroelectric power station in the central province of Manica,
- Small hydropower stations at Tsate (also in Manica), Messalo (Cabo Delgado) and Mugeba (Zambezia), and;
- Transmission lines from the northern city of Nampula to the coastal district of Angoche, which covers Chimuara to Dondo, in Sofala province, from Macia to Chonguene, in the southern province of Gaza, from Ressano Garcia, on the South African border, to the industrial area of Beluluane, on the outskirts of Maputo, and from Maputo to Salamanga.
Emphasis on renewable energy
Swedish ambassador, Marie Andersson de Frutos, stressed the need for EDM to rely increasingly on renewable sources of energy, notably solar power.
Earlier this month, Scatec Solar together with KLP Norfund Investments and EDM closed debt financing for a 40MW solar plant located close to the city of Mocuba in the Zambézia Province.
The International Finance Corporation provided project debt of $19 million on its own account together with a concessional loan from the Climate Investment Fund of the same size and a syndicated loan of $17 million from the Emerging Africa Infrastructure Fund, managed by Investec Asset Management.