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Mozambique to Invest $110 Million in Solar Power Plant in Gaza Province

A private group plans to invest $110 million in a 95 MW solar power plant in Gaza province, Mozambique. The project, developed by Sal Energia and Elétrica de Mozambique, aims to bolster the public grid while increasing solar energy contributions in a region dominated by hydroelectric power. The country’s Energy Transition Strategy outlines ambitious goals for solar and wind energy expansion by 2050.

A private Mozambican consortium is set to invest approximately $110 million in the development of a solar power plant in the Gaza province of Mozambique. This information was revealed through an Environmental Impact Study regarding the Chibuto Solar Power Plant, which will have an installed capacity of 95 MW, facilitated by a partnership between Sal Energia and the state-owned Elétrica de Mozambique (EDM). The initiative aims to enhance the public grid’s capacity.

The solar plant will occupy an area of 211 hectares in Chibuto Sede and will include the construction of a 275 kV transmission line extending about 10 kilometers to connect to the Chibuto substation. Despite a reported 18.6% increase in solar electricity production across Mozambique in 2024, solar energy still contributes less than 1% to the nation’s total electricity output.

According to recent budget reports, the electricity generated by Mozambique’s five major solar parks surpassed 101,247 MegaWatt-hours (MWh) from January to December 2024, an increase from 85,343 MWh in 2023. However, this output remains below the government’s target of 138,808 MWh, indicating that the existing solar infrastructure is underutilized, particularly when compared to hydroelectric sources which comprised 83.8% of total generation.

Mozambique is committed to advancing solar energy projects in at least five regions by 2030, with objectives targeting an overall capacity of 1,000 MW. The Energy Transition Strategy (ETS) suggests that scaling these projects is essential for addressing the country’s future energy decisions, particularly for balancing energy needs between domestic consumption and export potential.

The country has previously engaged in projects geared towards creating 125 MW solar power plants, with 80 MW already integrated into the grid. A more ambitious strategy includes a proposed investment of $80 billion by 2050, targeting an initial phase of at least 1,000 MW of solar and up to 500 MW of wind energy.

The document urges for the encouragement of large industrial investors willing to develop extensive solar and wind energy projects, suggesting that a conducive business and regulatory environment is crucial for fostering such investment. The long-term goal is to establish up to 7.5 GW of solar photovoltaic capacity and 2.5 GW of wind power capacity by 2050.

The government is advised to leverage Mozambique’s Renewable Energy Auction Programme to optimize pricing and accelerate the deployment of solar and wind power. The experience of South Africa’s solar expansion post-auction implementation serves as a regional model for Mozambique, which aspires to nurture its solar and wind generation capacity to meet the escalating electricity demand sustainably.

In summary, the planned investment in solar energy by a private consortium reflects Mozambique’s commitment to enhancing its energy infrastructure and transition to renewable sources. The growth of solar production, albeit modest, aligns with national goals for substantial capacity development by 2030. Future strategies emphasize scaling projects, attracting investment, and adopting competitive practices to optimize energy production and meet rising demand responsibly.

Original Source: clubofmozambique.com

Victor Reyes

Victor Reyes is a respected journalist known for his exceptional reporting on urban affairs and community issues. A graduate of the University of Texas at Austin, Victor has dedicated his career to highlighting local stories that often go unnoticed by mainstream media. With over 16 years in the field, he possesses an extraordinary talent for capturing the essence of the neighborhoods he covers, making his work deeply relevant and impactful.

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