Mozambique power utility Electricidade de Mocambique (EDM) has signed a new Memorandum of Understanding (MoU) with Kibo Energy to guide and facilitate further development of Benga power plant in Tete province, Mozambique. EDM is committed to increasing population access to electricity and improving the quality of service rendered to consumers by developing infrastructure for electricity generation, transmission and distribution.
According to the CEO of Kibo Louis Coetzee, the new MoU marks a very positive development in the advancement of Benga. “We have been in regular discussion with EDM to determine ways in which we can work together to commercialise the project and create affordable and reliable electricity supplies in Mozambique. This MoU marks significant progression in these talks and is testament to the quality of our project proposal. We now look forward to further de-risking and developing Benga and continuing our engagement with EDM by progressing to the next development phase, having completed and submitted a positive Definitive Feasibility Study and independent financial model on Benga to EDM,” he said.
The terms of the new MoU with EDM focusses on facilitating the project from its current development status to fruition. The MOU will be valid for an initial period of 12 months unless the parties agree to extend its validity or to terminate it early.
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Additional land acquired for long duration storage energy projects
Kibo Energy PLC has also successfully acquired additional land contiguous to the Benga Power Plant Project, increasing the total project area with an additional 345 hectares. Alongside hosting a 150-300MW thermal power plant, which is being developed as part of a joint-venture agreement with local energy company Termoeléctrica de Benga S.A, the expanded land holding provides room for the intended renewable and long duration storage energy projects in line with Kibo’s commitment to creating reliable, sustainable and affordable electricity.
The CEO further added that they firmly believe in the significant value potential of Benga following the extensive feasibility work and technical studies done to date. “It is as a result of this that we decided to expand our land title. This enlarged land holding will enable us to establish the planned thermal power plant whilst also providing room to build renewable energy projects with long duration storage, in pursuit of our strategy of focused and deliberate transition away from fossil fuel based energy solutions,” he affirmed.
The Government of Mozambique considers the energy sector a strategic priority for the development of the country and in its desire to accelerate social and economic development, the Government encourages investment in the energy sector, either public or private and by nationals or foreigners.
