All you need to know about the Cuamba Solar PV Project in Mozambique from commencement to date
June 2021
It is announced that construction of the Cuamba Solar PV plant in Mozambique has commenced. Minister of Mineral Resources and Energy, Dr Ernesto Max Tonela performed the ground breaking ceremony and said the project will contribute to the Government’s “Energy for All” strategy, aiming to have universal energy access by 2030.
The US $32m project is located in the Tetereane District of the city of Cuamba, Niassa province, about 550 kms west of the coastal town Nacala. It involves construction of a 19MW solar plant, a 2MW energy storage system and an upgrade to the existing Cuamba substation.
Also Read:400kWp solar PV plus 912kWh battery storage project in Mozambique secures funding
First IPP to integrate storage system
The energy project is the first IPP in Mozambique to integrate a utility scale energy storage system and is being developed by Globeleq, a leading independent power company in Africa and its project partners, Source Energia and Electricidade de Moçambique (EDM). Electricity will be sold through a 25-year power purchase agreement with EDM.
Cuamba Solar PV plant project will receive US $19m debt funding from the Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG). It will also receive US $7m grant funding from PIDG’s Viability Gap Funding (VGF) grant facility and another US $1m grant from CDC Plus to enable an affordable tariff and the energy storage system.
“This project is a trailblazer for future utility-scale energy storage in Mozambique and the region. Cuamba Solar, along with all our energy projects we are working on, cements our ongoing commitment to contribute to the long-term energy security and development of the country on a low carbon pathway,” said Jonathan Hoffman, Globeleq’s Chief Development Officer.
Meanwhile, Globeleq and Source Energia are also developing one of the first wind projects in Mozambique located near the town of Namaacha 40km west of Maputo.
December 2021
It is reported that The Emerging Africa Infrastructure Fund (EAIF) will function as the only lender for the Cuamba plant, lending $19 million to Central Electrica de Tetereane SA (CET). On December 20, a 19-megawatt solar power project in Mozambique’s Niassa district attained financial closure. The initiative will supply clean electricity to thousands of people in Niassa, one of the country’s poorest regions, contributing to SDG 7, which provides access to clean energy and supports employment development.
Also Read: World Bank Invests in Mozambique’s Water Access Projects
Mozambique’s First Untility solar plant
The Cuamba plant is Mozambique’s first utility-scale solar installation with battery storage. It will produce up to 7-megawatt hours of electricity, to increase solar production during peak demand hours in the evening. This will help maintain grid stability and replace thermal power, reducing emissions and supporting SDG 13 on climate mitigation. The introduction of battery technology will provide a chance to learn about battery storage and use what has been learned.
All stakeholders – borrowers, lenders, Mozambique’s energy provider, and government – are eager to expand and broaden their expertise in battery storage, according to Olivia Carballo, Director at EAIF’s management. She went on to say that battery storage is important for climate change mitigation and African economic growth. Finally, she concluded that a thorough grasp of everything from battery installation to maintenance and performance difficulties will be quite helpful in securing future project finance.
The Cuamba plant is owned and operated by CET, which is majority-owned by Globeleq, a London-based company that specializes in the African power industry. Source Energia, a diversified renewable energy company, concentrating on the construction and operation of big and small scale on- and off-grid projects in Lusophone Africa, collaborated on the project. Mike Scholey, Globeleq’s CEO, said that he was happy with what the company’s staff had accomplished despite the continuous hurdles posed by the epidemic. He also indicated that they were fully behind the Mozambican government’s efforts to support the Paris Agreement and give its residents dependable and clean alternative energy sources.
EDM, Mozambique’s national electrical provider, has signed a power purchase deal with CET. CET’s equity is held by EDM, which owns 15% of the company. CET received a $7 million Viability Gap Funding (VGF) grant from PIDG TA to increase the project’s commerciality while keeping rates low. The project’s cost, including the battery storage unit, was covered by the award. This is the first time PIDG TA has awarded a VGF grant to a solar project that includes battery storage. A subsidy for battery costs was also offered by CD Group, a Globeleq stakeholder. CET’s solar installation is the second in Mozambique to get EAIF funding. The $76 million 40MW Central Solar de Mocuba (CESOM) project, which is now fully operational, was given a $17 million loan from EAIF through a “B” credit to the International Finance Corporation.
January 2022
Globeleq, announced the financial close of the project after the project partners reportedly raised US$ 19M from the Emerging Africa Infrastructure Fund (EAIF) of the Private Infrastructure Development Group (PIDG).
