Solar power plant and energy storage system in Cuamba reach financial close
Globeleq, the leading independent power company in Africa and its project partners, and ALER’s associates, Source Energia and Electricidade de Moçambique (EDM), have reached financial close on the 19MWp (15MWac) Cuamba Solar PV plant with a 2MW (7MWh) energy storage system. It is expected to supply power for the first time in the second half of 2022.
The pioneering project of independent producers (IPP) in Mozambique that integrates grids' energy storage batteries connected to the Cuamba substation is valued at US$36 million, and will provide energy through a purchase agreement with EDM for a period of 25 years.
The Emerging Africa Infrastructure Fund (“EAIF”), a member of the Private Infrastructure Development Group (“PIDG”) provided US$19 million in debt funding, with PIDG’s Viability Gap Funding (VGF) grant facility providing US$7 million to enable an affordable tariff, fund essential grid upgrades and an energy storage system for EDM. CDC Plus, the technical assistance facility of CDC Group, has contributed a US$1million grant towards the battery energy storage system.
EDM’s Chairman, Marcelino Gildo Alberto said: “This project is a demonstration of EDM’s commitment to provide sustainable solutions to speed up energy access to Mozambicans. In compliance with the Government’s Five-Year Plan to introduce 200MW of renewable energy, EDM is at the forefront of the energy transition in line with the Paris Agreement.”
“We are very pleased to make another contribution to the Mozambique Energy sector and look forward to supporting the future growth of the industry in the country. Our thanks go to our project partners and funders for their unparalleled patience and commitment during the development phase.” Said Pedro Coutinho, CEO of Source Energia
The project will require approximately 100 workers during construction, many of whom will be hired from the local community. The Spanish company Grupo TSK has been appointed as the project EPC contractor and will immediately commence mobilisation of its construction team. E22, part of the Spanish Gransolar Group, will supply the complete battery energy storage system. Globeleq will oversee the construction and operations of the power plant, supported by Source Energia.
Read the full Press-release here
Source Ⓒ Source Energia