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Mozambique’s $110 Million Investment in Solar Power Plant: A Step Towards Renewable Energy Revolution

A private Mozambican group will invest $110 million in a 95 MW solar power plant in Gaza province. This partnership aims to enhance the public electricity grid capacity. Despite a recent increase in solar production, it still accounts for less than 1% of total energy output. Mozambique seeks to develop substantial solar and wind capacity by 2030, targeting 1,000 MW in solar energy initiatives.

A Mozambican private group plans to invest $110 million in a solar power plant located in Gaza province. The Chibuto Solar Power Plant will have a capacity of 95 MW and is a collaborative effort between Sal Energia and the state-owned Elétrica de Mozambique (EDM) to enhance the public grid’s capabilities. The plant will occupy an area of 211 hectares in Chibuto Sede and will involve constructing a 10-kilometer, 275KV transmission line linking to the Chibuto substation.

Electricity generation in Mozambique via solar parks rose by 18.6% in 2024; however, it still contributes less than 1% of the total electricity production. The annual report indicates that the five main solar parks and smaller installations generated over 101,247 MegaWatt-hours (MWh) from January to December 2024, up from 85,343 MWh in 2023. Target production for 2024 was set at 138,808 MWh, a goal that was not achieved due to dependence on hydroelectric sources, which accounted for 83.8% of total generation.

By 2030, Mozambique aims to progress with solar energy projects across five regions, targeting an overall capacity of 1,000 MW to initiate a significant solar transformation. The Energy Transition Strategy emphasizes that scaling these solar initiatives is crucial to resolving Mozambique’s post-2030 energy dilemma: balancing green energy for export versus catering to industrial energy consumers.

Plans include maintaining momentum with a first-phase goal of developing at least 1,000 MW of solar capacity across various locations by 2030 and adding 200 to 500 MW of onshore wind capacity in areas like Inhambane. At full scale by 2050, the country aims for at least 7.5 GW of integrated solar and 2.5 GW of wind power.

To foster large-scale investments, the document recommends creating a favorable regulatory environment for industrial consumers in green energy sectors. The Renewable Energy Auction Programme is cited as a strategic approach to facilitate competition in renewable energy contracts, mirroring South Africa’s success in solar expansion through similar initiatives. Gradual enhancements in solar and wind energy generation are essential to meeting Mozambique’s growing electricity needs sustainably.

The investment of $110 million in the Chibuto Solar Power Plant represents a critical step toward enhancing Mozambique’s renewable energy landscape. Despite current challenges, the government aims for substantial growth in solar and wind energy capacity by 2030 to create a sustainable and robust energy infrastructure. The strategic focus on attracting investments and fostering competition in renewable energy deployment is vital for achieving the country’s energy goals by 2050.

Original Source: clubofmozambique.com

Lila Khan

Lila Khan is an acclaimed journalist with over a decade of experience covering social issues and international relations. Born and raised in Toronto, Ontario, she has a Master's degree in Global Affairs from the University of Toronto. Lila has worked for prominent publications, and her investigative pieces have earned her multiple awards. Her insightful analysis and compelling storytelling make her a respected voice in contemporary journalism.

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