Scatec to develop first ever utility-scale solar plant in Mozambique

More and more countries are turning to solar to meet their energy needs and to start meeting emissions reduction targets, with Mozambique now the latest country to accept the development of a utility-scale solar plant within its borders. This landmark project will soon be underway, and is expected to supply electricity to the northern regions of the country.

Scatec Solar will develop the 40 MW plant, and along with its project partner, KLP Norfund Investments, has signed a 25-year power purchase agreement (PPA) with state-owned utility Electricidade de Mozambique. The plant will be constructed close to the city of Mocuba in the Zambezia Province, and represents the country’s first step towards solar deployment.

An impressive USD 80 million will be needed for the development of the project, with Scatec Solar taking on 52% of the debt, KLP Norfund Investments taking on 22.5% and EDM taking on the remaining 25%. The partners are hoping that financing will be wrapped up by Q1 2017, when they also hope that construction will get underway.

“This is an excellent example of how private public partnerships can deliver renewable energy and support further economic growth in Mozambique,” commented Scatec Solar CEO, Raymond Carlsen. “EDM and the government of Mozambique have demonstrated strong leadership in taking this project forward and it paves the way for further investments in renewable energy in the country.”

Scatec is hoping that this will open up another solar market in the region, after already undertaking projects in various other African countries. East Africa is a hotbed for solar activity at the moment, with large investments in off-grid solar systems and mini-grids, which are proving to be effective solutions for regions that do not have access to reliable electricity.