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Mozambique Receives Private Investment of $110M for Solar Power Plant in Gaza Province

Mozambique Receives Private Investment of $110M for Solar Power Plant in Gaza Province

Mozambique is to receive a new boost in the renewable energy sector with the installation of a solar power plant in Gaza province, in the south of the country. The project represents a private investment of around 110 million dollars (7 billion meticals) and will be developed by the company Sal Energia, in partnership with the state-owned Electricidade de Moçambique (EDM).

According to the environmental impact study for the Chibuto solar power plant, the infrastructure will have an installed capacity of 95 megawatts (MW) and will occupy an area of 211 hectares in the administrative post of Chibuto Sede. The plan also includes the construction of a 275 kilovolt (KV) transmission line about 10 kilometres long, linking the solar plant to the local substation.

Sal Energia will be responsible for the development, financing and construction of the plant and associated infrastructure, reinforcing the capacity of the national electricity grid and contributing to the expansion of access to energy in the country.

Electricity production through solar parks in Mozambique has seen significant growth, increasing by 18.6 per cent by 2024. However, solar energy still represents less than 1% of the total electricity generated in the country, with the energy matrix dominated by hydroelectric sources, responsible for 83.8% of national production.

The government plans to increase solar generation capacity to 1000 MW by 2030, through the installation of new plants in different regions of the country. The Energy Transition Strategy (ETS) emphasises that accelerating these projects will be key to balancing domestic demand and green energy export opportunities.

Mozambique currently has solar projects totalling 125 MW of installed capacity, of which 80 MW are already connected to the electricity grid. In the long term, the country aims to achieve at least 7.5 gigawatts (GW) of photovoltaic solar energy and 2.5 GW of wind energy by 2050.

To guarantee competitive prices and attract more investment, the government is betting on the Renewable Energy Auction Programme, which aims to boost the sector and replicate the success of South Africa, where the adoption of this model has accelerated the expansion of clean energy.

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