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Financial Close for Mozambique’s Cuamba Solar Project

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Anglo-Norwegian independent power producer Globeleq has announced a financial close on its 19 MWp Cuamba solar project. Described as Mozambique’s first grid-scale solar-plus-storage project, the facility will start supplying power to the national grid during the second half of 2022.

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The project budget of $32 million as announced by Globeleq a few months ago, has been recently labeled a $36 million site by the lead backer of the project which is 70% owned by the U.K.’s CDC Group and 30% owned by Norway’s Norfund. 

Located in the Niassa province, the Cuamba solar power station (CSPS) will feature a 2 MW/7 MWh battery system. Globeleq also mentioned the battery system will be supplied by Energy Storage Solutions (E22). CDC Group provided a finance facility of $1 million to help pay for the battery system, under a viability gap funding program which will provide the backing needed to shore up the business case of projects. 

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The Cuamba project has already received a $19 million loan from the Emerging Africa Infrastructure Fund (EAIF), financed by the Governments of the U.K., Switzerland, Sweden, Germany, and the Netherlands. Spanish-based TSK Group will provide engineering, procurement, and construction (EPC) services for the facility.

Private Infrastructure Development Group (PIDG) has allocated a grant of $7 million, which will subsidize the electricity price to be paid by state-owned utility Electricidade de Moçambique (EDM), under a power purchase agreement of 25-years. The grant will also be helpful in providing funds for grid upgrades for accommodating the solar and battery system.

The Director of CDC Plus, Sarah Marchand, said the Cuamba project is one of sub-Saharan Africa’s first grid-scale battery energy storage systems. EDM chairman Marcelino Gildo Alberto said the project would help deliver on the Mozambique government’s plan to add 200 MW of renewable generation capacity to its power grid under its latest five-year plan.

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