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Scatec Solar To Build Mozambique’s First Utility-scale Solar Project

Mozambique will soon see its first utility-scale solar power project commissioned by foreign investors.

Scatec Solar and Norfund will soon sign a power purchase agreement to set up 40 MW solar power project in Mozambique. The project will sell electricity to state owned utility Electricidade de Mozambique (EDM) through a 25-year power purchase agreement.

The project will come up at Mocuba in the Zambézia Province. When commissioned, the project will generate around 77,000 MWh electricity every year enough to meet power demand of around 175,000 households.

In addition to the power purchase agreement, a shareholder agreement will also be signed. Scatec Solar shall hold 52.5% stake in the project, Norfund 22.5%, and EDM will have 25% stake. Debt finance for the project shall be provided by the International Finance Corporation and the Emerging Africa Infrastructure Fund.

Construction on the project is expected to begin by Q1 2017.

In 2014, Scatec Solar and Norfund signed an agreement to set up 200 MW solar power capacity in least developed countries in Africa. As per the agreement, both entities shall be equity partners in the projects.