Globeleq finalises acquisition of a 41MW solar plant in Mozambique

Africa-focused independent power company Globeleq, has completed the acquisition of a 52.5 % stake and a 22.5% stake in the 41 MW Central Solar de Mocuba solar PV power plant (Mocuba) in Mozambique from Scatec ASA and KLP Norfund respectively.

The remaining 25% stake in the solar power plant will continue to be owned by the Mozambique national electricity utility, Electricidade de Moçambique (EDM).

According to Globeleq, the acquisition represents an important addition to its solar PV portfolio in Africa which now has capacity of close to 400 MW across South Africa, Egypt, Kenya and Mozambique.

Furthermore, the acquisition significantly expands the company’s renewable energy footprint in Mozambique and comes just weeks after it started commercial operations at its 19MW solar and 7MWh energy storage project at Cuamba.

“We are steadily building a major business in Mozambique in solar, wind and gas-to-power of which this acquisition at Mocuba is just the latest addition,” said Mike Scholey, the CEO of Globeleq.

“Mocuba is an excellent fit within our pan-African solar portfolio and I welcome our new colleagues from the plant to Globeleq. 2024 promises to be a critical year for Globeleq in Mozambique as the Temane gas-to-power plant moves towards commercial operations and the Namaacha project, the country’s first wind power project, is expected to reach financial close by mid-2024,” Scholey added.

The Mocuba solar power plant is located on 126 hectares in a rural setting around 13km from the city of Mocuba in Zambezia province in central Mozambique. The project reached financial close in March 2018 and construction was completed in August 2019.

State-owned electricity utility EDM is the off-taker of the power generated by the solar power plant through a 25-year power purchase agreement. The lenders that contributed to the financing of the project include International Finance Corporation (IFC) and the Emerging Africa Infrastructure Fund (EAIF). The project was built at an investment of US$36 million.

The Mocuba solar power plant delivers clean energy to approximately 22,000 Mozambican households. Over the project’s lifespan, it is expected to reduce CO2 emissions by displacing over 172,000 tonnes.