Mozambique Secures $150 Million AfDB Loan For 100 MW Floating Solar Project At Cahora Bassa Lake

The African Development Bank has approved a loan of 150 million US dollars to support a major floating solar project in Mozambique. The project will be built on the Cahora Bassa Lake and will have a planned capacity of 100 megawatts. This initiative is an important step for the country as it moves towards clean and sustainable energy.

The solar plant will be installed directly on the surface of the lake, which is connected to the Cahora Bassa Dam, one of the largest hydroelectric facilities in Africa. This project will combine solar and hydro power to create a hybrid energy system. During the daytime, solar panels will generate electricity, reducing the need to use water from the dam. The saved water can then be used later to produce electricity at night or during peak demand hours. This approach will help improve the reliability of power supply in the country.

The project will be developed by the state-owned utility, Electricidade de Moçambique, which plays a key role in managing electricity generation and distribution. The floating solar system offers several advantages compared to traditional land-based solar plants. One major benefit is that it reduces water evaporation from the reservoir, which is especially useful during dry seasons. Another advantage is that it avoids the need to use land, protecting agricultural areas and natural ecosystems.

The cooling effect of the water also helps improve the efficiency of the solar panels. When panels are kept cooler, they can produce more electricity compared to those installed on land in hot conditions. This makes floating solar a more efficient and practical option in regions with high temperatures.

The project has strong international support. Along with the African Development Bank, funding and assistance are also being provided by the Green Climate Fund, the World Bank, and the European Union. This shows that the project is seen as an important model for clean energy development in Africa.

Construction is expected to begin in the third quarter of 2026, and the plant is planned to be fully operational by the end of 2028. There is also a possibility to expand the project to 200 megawatts in the future. This initiative will help Mozambique reduce carbon emissions, improve energy security, and meet the rising electricity demand in a sustainable way.