Scatec Solar closes financing for Mozambique’s solar plant

Scatec Solar, KLP Norfund Investments and Electricidade de Mozambique (EDM) have closed debt financing and initiated construction of a 40 MW solar plant in Mozambique.

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. Th goal is to enhance renewable power in its energy mix. The partners signed a Power Purchase Agreement (PPA) for the solar plant in October 2016. The PPA secures the sale of power from the plant over a 25-year period to the state-owned utility Electricidade de Mozambique (EDM).

The 40MW 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.

EDM’s Chairman and CEO, Dr Mateus Magala said “EDM is very pleased that the Mocuba Solar IPP project has reached financial close through a well-structured public-private partnership between EDM, Scatec Solar and Norfund, and with excellent support from IFC and EAIF as lenders, as well as the Government of Norway.”

Oumar Seydi, IFC Director for Sub-Saharan Africa, said: “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. By supporting projects like Mocuba, IFC, EAIF and PIDG are helping to encourage the participation of other private investors in Mozambique’s power sector.”