The $2.5 million grant comes from the Sustainable Energy Fund for Africa (SEFA), administered by the African Development Bank. It will be used to implement the Mozambique Renewable Energy Integration Program (MREP).
The funding provides financial support for the floating solar power plant project in the Chicamba Reservoir. Under the authority of the national electricity company, technical, economic, environmental and social feasibility studies for the development will be done. In addition, it will support the funding of a feasibility study for the storage of energy battery systems at up to 10 sites.
The grant will also be used to conduct studies aimed at increasing the share of variable renewable energy production in Mozambique’s energy mix. Feasibility studies to develop floating solar photovoltaic energy will therefore be conducted on existing hydroelectric assets.
Daniel Schroth, Director of the Renewable Energy and Energy Efficiency Department at the African Development Bank, states:
“With the support of the Sustainable Energy Fund for Africa, Mozambique’s ability to integrate greater shares of variable renewable energy will strengthen its efforts to become a major regional electricity provider. Given that Mozambique is one of the most climate-vulnerable countries in the world, the project will help build a more sustainable and resilient power generation infrastructure. “
Mozambique: a key country for renewable energy
Mozambique has abundant energy from renewable and fossil resources. Indeed, more and more cyclones and severe and sudden storms affect the country. Over the past decade, the energy sector in Mozambique has made considerable progress. The country is a net exporter of electricity despite low access rates.
With 187 gigawatts, Mozambique has the largest power generation potential in Southern Africa. Indeed, the country has many untapped resources in coal, hydroelectricity, gas, wind and solar energy. In particular, hydroelectricity represents about 81% of the installed capacity. These renewable energy sources will become an important part of Mozambique’s energy mix.
The African Development Bank is a key player in the energy sector in Mozambique. Indeed, it has provided more than $400 million in financing for Mozambique’s liquefied natural gas (LNG) project.
The Bank supports electricity generation, transmission and distribution, such as the Tamine gas project. It is currently supporting the Mphanda Nkuwa hydropower project and the rehabilitation of the Cahora Bassa hydropower plant. Finally, it promotes the construction of a transmission line from the north to transport electricity to the south.
