Scatec Solar and Norfund have signed a power purchase agreement securing the sale of solar power over a 25-year period to the Mozambique state-owned utility Electricidade de Mozambique (EDM).
The agreement was signed at a ceremony in Maputo at the end of October in the presence of the Mozambican Minister of Mineral Resources and Energy Letícia Klemens, the Norwegian Minister of Foreign Affairs Børge Brende, as well as Mateus Magala, Chairman & CEO of EDM. The project is the first large-scale solar plant to be built in Mozambique and represents an important first step in realizing Mozambique’s ambition to boost renewable power generation in the country’s energy mix.
The 40 MW plant is located close to the city of Mocuba in the Zambézia Province and is expected to deliver 77,000 MWh per year of much needed electricity to the northern regions of Mozambique. The plant will deliver power to the national grid and produce enough energy to serve about 175,000 households.
A shareholder agreement was also signed between KLP Norfund Investments AS, Scatec Solar and EDM. The required project investment is estimated at $80 million. Scatec Solar (52.5%), KLP Norfund Investments (22.5%) and EDM (25%) will provide equity, while IFC, the International Finance Corporation, a member of the World Bank Group, and the Emerging Africa Infrastructure Fund intend to provide project finance debt. The parties are targeting financial close and solar plant construction start in the first quarter of 2017.
“This is an excellent example of how public-private partnerships (PPPs) can deliver renewable energy and support further economic growth in Mozambique. EDM and the government of Mozambique have demonstrated strong leadership in taking this project forward and it paves the way for further investments in renewable energy in the country,” said Scatec Solar CEO, Raymond Carlsen.
“Access to reliable energy is a prerequisite for development. Only 3% of the world’s electricity is generated in Africa, although 15% of the world’s population lives here. Clean energy is a focus investment area for Norfund, and we appreciate being a partner in this first independent solar power producer project in Mozambique together with EDM and Scatec Solar,” said Norfund CEO, Kjell Roland.
Scatec Solar is a leading developer and owner of large scale solar plants in Africa. In addition to this new 40 MW plant in Mozambique, the company operates 200 MW of solar power plants in South Africa and Rwanda and has new projects under development across Africa, including in Mali, Nigeria and Kenya.
- Mali to build West Africa’s first industrial-scale solar plant
- EXEO Capital’s agribusiness Agri-Vie Fund II attracts over $100M in first close
- Norway fund mulls West Africa expansion with Ghana investments
- Three exciting developments in the solar power space in Africa
- Norway’s Norfund to double power investments in Africa by 2020, says Managing Director Kjell Roland
- Private equity investment in Africa heats up as pension funds stay local
- Kenyan $50M private equity fund Fanisi Capital invests $2.1M in European Foods Africa
- Kenyan private equity firm Fanisi Capital pays $6M for minority stake in Tanzanian agro-processor
- Norway-Backed Fund on Hiring Spree in Africa Finance Venture
- Africa’s richest man plans to almost double the continent’s cement production by 2020 (Infographic)
- Kenya’s Equity Bank to expand to the DRC via acquisition in first step outside East Africa
- Novare Africa Property Fund II closes with $350 million for investment
- Africa-focused private equity funds AFC and Harith merge $3.3 billion in electric power assets
- Momentum raises $50 million for its Momentum Africa Real Estate Fund
- African IPOs Set to Double Capital Raised in 2016: Baker & McKenzie (Infographics)
- IFC invests $50M in Nigeria’s Seven Energy debt issuance
- Africa is one of the few bright spots on the global economic horizon, says billionaire investor George Soros
- President Goodluck Ebele Jonathan (“GEJ”) of Nigeria is clueless, incompetent, and callous: 35 reasons why this is a big lie
- London Stock Exchange eyes dual listings on West African capital markets
- Africa Telecom and Tech IPO Pipeline Swells as Growth Companies Target Public Markets
- Ethiopia is the ideal environment for independent power producers (IPPs), says EEPCo CEO Azeb Asnake
- Africa’s neither ‘rising’ nor ‘falling’ but it is growing. Fast
- Nigeria’s Interswitch considers IPO dual-listing on London Stock Exchange & Nigerian Stock Exchange for Africa expansion
- European Investment Bank Plans Africa Expansion Amid Growth
- GroFin launches $100M fund for small and growing businesses in Africa
- East Africa sees regional power links ready in 3 years
- African M&A deal volume at a seven year high, says Mergermarket
- Africa’s megaprojects: 326 billion reasons Africa is on the move (Photos, Infographic & Video)
- Britain’s Equinox to invest $250 million in Kenya biogas power project
- Into Africa: The continent’s Cities of Opportunity – PwC (Video, Presentation, and Report)
- Shop Africa 2016 (Report & Infographics): Knight Frank
- Emerging Africa Infrastructure Fund appoints Investec Asset Management to manage $670M fund
- Compelling investment markets in Africa – Inside Riscura’s Bright Africa 2015 Report: Debbie O’Hanlon, Senior Analyst, RisCura (Infographics)
- Africa Report 2015 – Real Estate Markets in a Continent of Growth and Opportunity: Knight Frank (Infographics & Report)
- Africa: The great opportunity
- South Africa’s largest REIT Growthpoint joins forces with Investec and IFC to invest in African real estate
- Bloomberg African Business Weekly: Afreximbank, PTA Bank, South African Private Equity, Powering Rwanda, & Agriculture in Gabon (Video)
- Aliko Dangote, Africa’s richest man, partners with Blackstone and Carlyle for Africa investments
- Africa: Now a major player in emerging markets financial services
- M&A activity heats up in Africa as investors bet on growth