The German Development Bank (KfW) will finance the rehabilitation and expansion of two mini hydroelectric plants in Niassa province, north-west Mozambique, with €17 million, it was announced on Thursday.
At stake are the Lichinga and Cuamba mini-hydroelectric plants in that province, whose rehabilitation will be supported by German co-operation under the financial support grant agreement signed on Wednesday in Maputo between the two governments, according to information from the ministry of finance.
The state-owned company Eletricidade de Mozambique (EDM), which operates the only hydroelectric power stations it owns in the north of the country, will be the beneficiary of the support and will carry out the project financed by Germany.
After signing the donation agreement, the German ambassador in Maputo, Ronald Münch, pointed out that this project to modernise the two hydroelectric plants will make it possible to provide “additional solar photovoltaic power generation capacity”, making “use of locally available and climate-friendly renewable energy in Mozambique”, improving the energy supply to the public in the province of Niassa, “especially in the cities of Cuamba and Lichinga”.
The project is also classified as ‘flagship’ of the European Union’s (EU) Global Gateway 2025 Initiative, a joint effort by member states, including Germany, to support infrastructure initiatives for development.
“With a portfolio of €274 million, Germany is among the top three co-operation partners in the energy sector in Mozambique. We have shared a reliable and fruitful co-operation with EDM for many years,” said the diplomat, quoted in the ministry’s press release.
According to the chairman of EDM’s board of directors, Joaquim Ouchim, the two mini-hydro plants started operating in the 1980s and their main components are degraded, so they produce energy below their installed capacity.
He stressed that with this rehabilitation and modernisation, the two infrastructures will increase energy production from the current 3,000 Megawatt-hours (MWh) to 3,900 MWh.
“The work on the mini-hydroelectric plants will contribute to the stability of the electricity system, particularly in the province of Niassa, bearing in mind that the northern region depends on a single power transmission line from the Matambo substation in Tete. This power transmission line is very long, and if it were to become unavailable, the entire province of Niassa could experience a limitation in the supply of electricity,” said Joaquim Ouchim.
Lusa
