EDM and IFC Signs Agreement for Four Mini Solar PV Plants of 50 MW

Mozambican public utility Electricidade de Moçambique (EDM) and the International Finance Corporation (IFC) have partnered to increase access to renewable energy and expand power delivered to the national grid in Mozambique. EDM and IFC have signed a collaboration agreement for the development of 50 MW of clean energy through four solar mini-power stations.

Mozambique has accelerated the electrification of its people and is banking on solar energy to diversify its energy mix. As part of its energy policy, the state-owned electricity company has this agreement for the development of four solar PV power plants equipped with battery storage systems. 

The agreement was announced on the sidelines of the Africa Energy Forum (AEF) 2022 held in Brussels. The solar power plants will help to meet the increasing demand for electricity generation in Mozambique. The IFC will commission a study on grid integration and financial assessment for the photovoltaic plants. 

Dan Croft, IFC’s Regional Director for Infrastructure in Africa, stated, “A key priority for Mozambique is to ensure access to affordable, sustainable, and reliable electricity. Through a combination of early-stage project development support and financing, IFC is working with EDM to help Mozambique develop its renewable energy sources to power homes and businesses.”

Marcelino Gildo Alberto, CEO of EDM, said the project signals the power utility’s effort in the search for sustainable solutions to attain universal electrification for all Mozambicans by 2030. “In this sense, with the commitment to energy diversification, we hope to generate, in the coming years, 200MW in renewable energy. Likewise, with projects of this nature, EDM is at the forefront of the energy transition, in line with the Paris Agreements to reduce global warming”, Alberto commented.

According to the World Bank’s 2020 data, Mozambique has an electricity access rate of only 30.2%. The East African country has a total installed capacity of 3 GW, with some dependence on hydroelectric power, which accounts for 75% of the country’s electricity mix. But the high dependence on hydro-power heavily affects electricity production in times of drought.