IFC, a member of the World Bank Group, has provided $55m in financing to construct solar PV plant in Mozambique.
The funding includes $19m from IFC’s own account, $19m from Climate Investment Funds, and a syndicated loan of up to $17m. It will be used for the development of a 40.5MW solar photovoltaic plant in Mocuba, Mozambique,
The project, touted to be the country’s first utility scale solar PV plant, is being developed by Norway-based independent power producer Scatec Solar, Norway-based development finance agency Norfund, and Mozambique’s electricity utility Electricidade de Moçambique (EdM).
The power produced from the plant will be sold to EdM under a 25-year power purchase agreement.
Scatec Solar CEO Raymond Carlsen said: “Scatec Solar is committed to harnessing Mozambique’s solar potential and infusing grid stability.
“This is especially important for a country that relies on a long distance power transmission system that is vulnerable to interruptions. We will leverage IFC’s knowledge and support to ensure greater resilience for the country’s electricity sector.”
IFC country manager Jumoke Jagun-Dokunmu said: “Our investment in Mozambique’s first utility scale solar power plant reaffirms IFC’s commitment to renewable energy in emerging markets.
"There is limited access to electricity in Mozambique, particularly in rural areas. This investment will expand electricity supply in one of the least developed regions of the country while also supporting electricity infrastructure and promoting foreign direct investments at an important time.”