Construction has begun on Mocuba Solar Power plant in Mozambique the first large scale solar plant to be built in the country, leading developer and owner of large scale solar in emerging markets Scatec Solar CEO, Raymond Carlsen has announced.
The move follows a financial close on the 40MW project that was reached between Scatec Solar, KLP Norfund Investments and Electricidade de Mozambique (EDM).
“Closing debt financing for the Mocuba solar power plant is another great achievement for Scatec Solar and our partners”, says Scatec Solar CEO, Raymond Carlsen.
The project debt financing is provided by IFC, the International Finance Corporation, a member of the World Bank Group, and the Emerging Africa Infrastructure Fund.
According to Scatec Solar the Macuba Solar Power plant is an important step in realizing Mozambique’s ambition to increase renewable power generation in its energy mix.
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The plant is located close to the city of Mocuba in the Zambézia Province, and is expected to deliver 79,000 MWh per year of much needed electricity to the northern regions of Mozambique.
The plant will deliver power to the national grid and produce enough energy to serve about 175,000 households.
The project costs are estimated at US$ 76 million, funded through equity of US$ 14 million, a grant of US$ 7million and project debt of US$ 55 million. Equity partners are Scatec Solar (52.5%), KLP Norfund Investments (22.5%) and EDM (25%).
Scatec Solar will deliver Engineering, Procurement and Construction (EPC) services, as well as Operation and Maintenance (O&M) and Asset Management services to the power plant.
According to Oumar Seydi, IFC Director for Sub-Saharan Africa, the solar project will help diversify Mozambique energy mix.
“IFC is committed to bridging Africa’s infrastructure gap while promoting clean energy. This project is in one of the least developed provinces of Mozambique. It will diversify the country’s power generation mix and help increase access to electricity,”says Seydi.