The board of directors of the African Development Bank (AfDB) announced on Wednesday, October 30, the approval of a loan of 3.1 billion meticals (54 million dollars) for a 120 Megawatt (MW) onshore wind farm, which will help position Mozambique as a regional energy centre.
According to a statement from the institution, the bank’s loan, which includes 758.4 million meticals (12 million dollars) from the Sustainable Energy Fund for Africa (SEFA), joins expected funding from the International Finance Corporation (IFC), the US International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF) and Technical Assistance from the Private Infrastructure Development Group. The total cost of the project is estimated at 14.1 billion meticals (224.5 million dollars).
The company Electricidade de Moçambique (EDM) will be the sole supplier of the wind farm, located 50 kilometres west of Maputo, under a 25-year power purchase agreement.
‘The wind farm will be the first large-scale wind energy project on the public grid in the country. It is expected to produce 331.6 Gigawatt hours (Gwh) per year, providing clean, reliable and affordable energy to local consumers and regional markets, diversifying Mozambique’s energy mix and improving access to electricity. It will also position the country as a regional energy centre, capitalising on increased trade through the Southern African Power Pool (SAPP),’ reads the statement.
With the country’s energy sources currently dominated by hydroelectric power and gas, the Namaacha wind farm project will help reduce annual carbon emissions by approximately 71,816 tonnes, contributing to national commitments under the Paris climate agreement.
‘The project will support economic growth, job creation and improved living standards. During construction, it will create 600 jobs, of which around 120 will be for women and 300 for young people. When it is operational, 20 permanent jobs will be created, with an emphasis on gender and youth inclusion,’ explains the AfDB.
Commenting on the initiative, Kevin Kariuki, Vice President for Energy, Electricity, Climate and Green Growth at the African Development Bank, said: ‘This wind project represents a milestone for Mozambican President and underlines the bank’s strong commitment to advancing clean and renewable energy solutions in the region. Not only will it increase energy security, but it will also facilitate regional trade in electricity, benefiting the country’s socio-economic development.’
For his part, Wale Shonibare, director of the AfDB’s Energy Financial Solutions, Policy and Regulations Department, emphasised the technological impact of the project: ‘As the first large-scale wind energy initiative in Mozambique, it shows the transformative potential of renewable technologies to drive sustainable growth. By leveraging the country’s natural resources, we are laying the foundations for a diversified and resilient energy sector that not only meets current demands, but is also prepared for the future to support an evolving economy,’ he said.
The financial institution explains that the project complements the bank’s previous initiatives in the energy sector in Mozambique, including the Songo-Matambo transmission line and the ‘Energy for All’ programme.
