Mozambique will build its first solar PV plant, thanks to funding from the International Finance Corporation. The IFC, a member of the World Bank Group, announced this week that it is providing USD$19 million in funding as part of a $55 million package to support the new utility in Mocuba.
The package also includes $19 million from Climate Investment Funds, and a loan of up to $17 million. The plant is being developed by Scatec Solar, headquartered in Norway, and the local Electricidade de Moçambique (EdM) utility, along with the Norfund development finance agency. Other financial support comes from the Emerging Africa Infrastructure Fund (EAIF), with a grant from the Technical Assistance Fund of the Private Infrastructure Development Group.
“The signing of the Mocuba financing is a great achievement for EdM and Mozambique’s electricity sector,” said Mateus Magala, Chairman of EdM, with thanks to the financing partners for “their excellent cooperation and the hard work in getting the project to this important milestone.”
Severe power deficits continue to hamper development in Mozambique. The project, the IFC said, is part of broader efforts to promote private investment and help bring reliable and clean electricity to consumers while diversifying the energy mix in an effort with long-term climate change impacts in view.
The power generated from the plant will be sold to EdM, the state-owned public electric utility, as part of a 25-year power purchase agreement.