Scatec Solar and Norwegian private equity firm KLP Norfund Investments have signed a 25-year PPA for a 40MW solar PV plant in Mozambique – the country’s first large-scale solar plant.
The US$80 million plant is located in the Zambézia Province and is expected to deliver 77,000MWh per year to the northern regions of Mozambique and enough clean energy to power around 175,000 homes.
Unlock unlimited access for 12 whole months of distinctive global analysis
Photovoltaics International is now included.
- Regular insight and analysis of the industry’s biggest developments
- In-depth interviews with the industry’s leading figures
- Unlimited digital access to the PV Tech Power journal catalogue
- Unlimited digital access to the Photovoltaics International journal catalogue
- Access to more than 1,000 technical papers
- Discounts on Solar Media’s portfolio of events, in-person and virtual
Equity for the project was supplied by Scatec Solar (52.5%), Norfund (22.5%) and EDM (25%). The International Finance Corporation (IFC) and the Emerging Africa Infrastructure Fund intend to provide project finance debt. The parties are expecting financial close and solar plant construction to start in the first quarter of 2017.
“This is an excellent example of how private public partnerships can deliver renewable energy and support further economic growth in Mozambique. 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,” said Scatec Solar CEO Raymond Carlsen, in a statement.
“Access to reliable energy is a prerequisite for development. Only 3% of the world’s electricity is generated in Africa, although 15% of the world’s population lives here. Clean energy is a focus investment area for Norfund, and we appreciate being a partner in this first independent solar power producer project in Mozambique together with EDM and Scatec Solar,” added Norfund CEO Kjell Roland.
