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Globeleq, an independent power company in Africa, and its project partners, Source Energia, an energy developer, and Electricidade de Moçambique (EDM), the Mozambican national power utility, have received formal notification from EDM, the off-taker, that commercial operations have commenced at the 19 MWp Cuamba Solar PV and 7 MWh energy storage plant in Mozambique.
"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," said His Excellency Filipe Nyusi, President of the Republic of Mozambique. "This is the third large-scale solar plant in Mozambique and the second that has had the support of the United Kingdom and the Kingdom of Norway, two long-time friend and partner countries."
Through a 25-year power purchase agreement, the $36 million Cuamba Solar plant will supply clean energy to EDM and provide power for around 22,000 Mozambican families, reducing over 172,000 tons of CO2 over the life of the project. The existing Cuamba substation was also upgraded for integrating variable solar energy into the grid.
"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," said EDM''s Chairman, Marcelino Gildo Alberto. "In compliance with the Government''s Five-Year Plan, which provides for the introduction of 200MW in renewable energies, EDM is at the forefront of the energy transition in line with the Paris agreements to reduce global warming".
The Cuamba project was financed by The Emerging Africa Infrastructure Fund, a member of the Private Infrastructure Development Group (PIDG), with $19 million in debt funding. PIDG''s Viability Gap Funding grant facility also provided $7 million to support affordable tariffs and fund essential grid upgrades and an energy storage system for EDM. Another $1 million in grants for the battery energy storage system was provided by BII Plus, the British International Investment technical assistance facility.
"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 Program," said Carlos Zacarias, the Minister of Mineral Resources and Energy. "In doing so, we are creating the essential conditions for industrialization, job creation, and an energy transition."
Rod Walton is senior editor for EnergyTech . He has spent 14 years covering the energy industry as a newspaper and trade journalist.
Walton formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.
He can be reached at [email protected].
EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids.
Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.
Just a few months after Mozambique’s first ever large-scale PV project reached financial close and construction work began, the US Trade and Development Agency (USTDA) has awarded a grant to pay for a feasibility study for a new project of up to 100MW capacity.
USTDA announced late last week that a grant has been signed by the US Ambassador to Mozambique, Dean Pittman, with South African solar developer WHN Solar. WHN Solar has in turn contracted US-headquartered engineering, environment and consulting firm HDR International, to conduct the feasibility study.
A ceremony was held in Maputo, the African country’s capital hosting the document’s signing. As well as examining the viability of the 100MW PV project, to be built in 20MW-40MW phases and expected by USTDA to include “an associated energy storage facility”, the overall aims of the study will include looking at wider issues surrounding development of the grid in Mozambique.
The grid in and around the city of Nacala in particular suffers from “a lack of sufficient generation capacity and stability issues,” USTDA said in a statement, adding that the energy storage portion of the project, as yet unspecified in size, design and technology type, can help with stabilising the grid. The 100MW solar-plus-storage facility is expected to be built at Nacala International Airport, northeastern Mozambique.
“We wish to thank USTDA for its contribution to the development of this pioneering project. With USTDA's support, we hope to improve the quality and security of power supply in the region, with a positive impact on local communities,” WHN Solar CEO and director Ntanzi Carrilho said.
USTDA is pleased to support this important project that will help diversify Mozambique’s energy generation mix. At the same time, the project represents business opportunities for U.S. companies in a key sector in Mozambique,” USTDA acting regional director for Sub-Saharan Africa, Paul Marin said.
In March, PV Tech reported that Scatec Solar, KLP Norfund Investments and Electricidade de Mozambique (EDM) had reached financial close with debt financingfora 40MW solar PV plant in the Mocuba district of Mozambiqueand that construction work had already begun. A 25-year power purchase agreement (PPA) was signed back in 2016 for that project.
Energy-Storage.news has reported on other recent activities by USTDA to support energy storage in developing regions and markets including Africa. In April 2017, for example, USTDA awarded US$1.1 million (Sh113 million) to Nairobi-based Xago Africa for the development of a utility-scale solar-plus-storage facility in Kenya. In September of that year the agency also supported South Africa’s main utility, Eskom, in a trial of flow battery energy storage systems from Primus Power.
MAPUTO, 21 December 2021: Globeleq, the leading independent power company in Africa and its project partners, Source Energia, a Lusophone Africa energy developer and Electricidade de Moçambique (EDM), the Mozambican national power utility, have reached financial close on the 19MWp (15MWac) Cuamba Solar PV plant with a 2MW (7MWh) energy storage system.
The US$36 million project located in the Cuamba district, Niassa province (about 550 km west of the coastal town of Nacala) will supply electricity through a 25-year power purchase agreement with EDM. The project is the first IPP in Mozambique to integrate a utility scale energy storage system and includes an upgrade to the existing Cuamba substation.
Once operational, the Cuamba Solar plant will supply enough power for 21,800consumers, and over the life of the project is expected to avoid the equivalent of more than 172,000 tonnes of CO2 emissions. First power is expected to flow in the second half of 2022.
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$7million 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.
Olivia Carballo, a Director at Ninety One Ltd, the managers of EAIF, commented: "This is a pioneering project for EAIF and PIDG. We congratulate Globeleq, Source Energia, EDM and Mozambique on reaching a key milestone in deploying more solar technology to the northern grid, and on installing Mozambique''s first grid-scale battery energy storage system.”
Sarah Marchand, CDC Director, CDC Plus, said: "We are delighted to support one of sub-Saharan Africa''s first grid-scale battery energy storage systems through this grant for the battery storage system. In line with CDC''s ambition to catalyse more storage solutions across the continent, CDC Plus will also offer support to capture and disseminate learnings around the battery component''s operational, economic, and development impact."
"With the ongoing challenges due to the pandemic, I am proud our team has achieved financial close, and we can begin building the first solar and energy storage facility in the country. We fully support the Mozambican Government in their initiatives to support the Paris Agreement and provide its citizens with reliable and clean alternative energy options," added Mike Scholey, Globeleq''s CEO.
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.
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