On 14 September 2020, Filipe Nyusi, President of the Republic of Mozambique, Carlos Zacarias, the Minister of Mineral Resources and Energy, and other distinguished guests officially inaugurated the Cuamba Solar plant, which is Mozambique’s very first combined utility scale solar and energy storage plant.

The US$36 million Cuamba Solar plant is also Globeleq’s first greenfield project in Mozambique and the Group’s first combined solar and storage plant in its operating portfolio. It supplies clean energy to EDM through a 25-year power purchase agreement and provides power for around 22 000 Mozambican families, displacing over 172 000 t of carbon dioxide over the life of the project. The existing Cuamba substation was also upgraded ensuring the smooth integration of variable solar energy into the grid.

Financing for the Cuamba project was provided by The Emerging Africa Infra-structure Fund, a member of the Private Infrastructure Development Group (PIDG) with US$19 million in debt funding. PIDG’s Viability Gap Funding grant facility provided US$7 million to support an affordable tariff, fund essential grid upgrades, and an energy storage system for EDM. BII Plus, the technical assistance facility of British International Investment, contributed a US$1 million grant towards the battery energy storage system.

Nyusi said: “The Cuamba solar and storage plant will provide greater energy security and stability in this region of Mozambique and marks a turning point for the Cuamba district. Globeleq, Source Energia, and EDM have all invested in this project – a public-private partnership that demonstrates the confidence of international investors in Mozambique. This is the third large scale solar plant in Mozambique and the second that has had the support of the UK and the Kingdom of Norway, two long-time friend and partner countries. We expect to build more renewable projects like this and look forward to initiating the Namaacha project – the first wind project in our country.”

Zacarias added: “The Cuamba solar power plant project aims to increase energy availability in the country through both public and private investments, with growing contribution from renewable energy sources; and addresses a strategic objective outlined in the Government’s Five-Year Programme. In doing so, we are creating the essential conditions for industrialisation, job creation, and an energy transition.”

Mike Scholey, Globeleq’s CEO, remarked: “We are extremely excited to now have Cuamba Solar officially delivering clean power to the Mozambican grid via EDM and supporting both the local economy and the Government’s efforts to build more renewable power. We continue to build our business in Mozambique through this project, our purchase of the Mocuba solar PV plant and our Temane gas-to-power project, currently in construction.”

Pedro Coutinho, CEO of Source Energia, commented: “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 and construction phase.”

EDM’s Chairman, Marcelino Gildo Alberto, concluded: “This project represents a demonstration of the company’s effort in the search for sustainable solutions to accelerate access to energy for Mozambicans in a sustainable and accessible way. In compliance with the Government’s Five-Year Plan, which provides for the introduction of 200 MW in renewable energies, EDM is at the forefront of the energy transition in line with the Paris agreements to reduce global warming.”