Globeleq Announces Financial Close of its Cuamba Solar Plant in Mozambique

  • 15MW solar storage project has reached its financial close
  • It is the first grid-scale solar project in Mozambique

Africa’s independent power producer (IPP) Globeleq has announced a financial close on the 15MW Cuamba Solar PV project in Mozambique. The facility is the first grid-scale battery storage system in the country.

Globeleq is partnering on the project in Niassa province with Source Energia, the renewables of private equity boutique Source Capital, and Mozambican state-owned electricity utility, EDM. EDM will buy the energy generated under a 25-year power purchase agreement (PPA). The utility will begin industrial operation in the second half of 2023.

The total investment in the solar-plus-storage plant is estimated at USD 36 million (EUR 31.9m). It will receive USD 19 million in debt funding from The Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG), and USD 7 million from PIDG’s Viability Gap Funding (VGF) grant facility. An additional grant of USD 1 million for the energy storage system will come from CDC Plus, the technical assistance facility of CDC Group.

Globeleq said the engineering, procurement and construction (EPC) contractor from Spain TSK Electronica y Electricidad SA, also known as Grupo TSK, will immediately commence mobilisation of the construction team. Installing the facility will create around 100 employment opportunities for the local community. Globeleq, supported by Source Energia, will oversee the construction and operations. Gransolar Group unit E22 will supply the battery storage component.

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