Mozambique signs an MOU with GLAE to construct US $400m power plant

Mozambique signs an MOU with GLAE on power generation

Mozambique has signed an MOU agreement  with GLAE, Great Lakes Africa Energy to construct a 250Mw gas-fired electricity generating power plant that will cost US $400m.

The MoU agreement which was as a result of Mozambique’s Rovuma Basin domestic gas tender, the results of which were announced in January 2017 was signed by Mozambique’s Minister for Mineral Resources and Energy, Dr Max Elias Tonela, and GLAE Director, Michael Kearns.

The UK-based pan-African energy solution firm develops and operates power projects in southern Africa. The agreement follows Rovuma Basin domestic gas tender whose results were announced in January 2017 with the firm clinching a US $372m contract.

“As part of the Mozambique government’s intended use of natural gas for the development of domestic power projects, GLAE will develop, finance, build, own and operate a 250 MW gas-fired electric generating power plant, planned in northern Mozambique,” said Michael Kearns.

Use of domestic power projects

Mozambique, which has vast offshore gas resources, has decided to use some for domestic power projects to achieve sustainable economic growth. At 250 MW, GLAE Mozambican gas-fired power plant will be one of the largest conventional sources of electricity in the country.

GLAE also owns and operates a 105 MW power plant in the Zambia’s copper belt town of Ndola, through Ndola Energy Company Ltd (NECL) under a power purchase agreement with the Zambia Electricity Supply Corporation (ZESCO).

The firm is in the process of securing additional power purchase agreements in Africa and beyond and is currently examining opportunities in Kenya, Uganda, Malawi, Zimbabwe and Democratic Republic of Congo.

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