UAE investors push ahead with solar plant in Mozambique

Investors from Mozambique and the United Arab Emirates will begin installing a 125-megawatt (MW) solar photovoltaic power plant in Tete province, central Mozambique, a project that will be unveiled to the public this month.

According to the announcement of the consultation process, which will take place on August 8 and 9, the Matambo solar project involves the construction of a solar photovoltaic power plant in the areas of Changara and Marara and a direct connection to the Mozambique Electricity Substation (EDS).

It represents a $150 million (€139 million) investment being developed by Mozambican companies Hidropower and the United Arab Emirates’ Amea Power and is expected to create 1,500 jobs during the construction phase and eventually provide electricity to 150,000 families, according to the project.

Last year, Mozambique had 125 MW of solar power projects under construction, of which 80 MW were already connected to the grid.

Mozambique’s solar power generation rose by almost 14% in the first quarter of the year but still accounts for less than 0.5% of the total, official data released earlier by Lusa showed.

According to the budget execution report for the January-March period, power generation at the country’s six major solar parks and other smaller power plants reached 19,688 megawatt hours (MWh) during the period, up from 17,328 MWh in the first three months of 2023.

Despite the increase in production, solar parks accounted for only 0.4% of Mozambique’s total production in the first quarter, led by hydroelectric power plants with 84.6% and, in fact, the Cahora Bassa hydroelectric power station (82.2% of total electricity production through March).

Mozambique plans to install solar power plants in at least five parts of the country by 2030, estimating 1,000 MW of electricity coming online, promising a “true solar revolution”.

“Accelerating the implementation of such projects on a larger scale is the easiest way to resolve Mozambique’s strategic dilemma beyond 2030: the need to choose between green energy for export or supplying energy to industrial consumers,” according to the Energy Transition Strategy (ETS), Lusa reported in February.

The new strategy, which envisages investments of around $80 billion (€73 billion) by 2050, also calls for the development in a first phase by 2030 of “at least” 1,000 MW of new solar photovoltaic capacity in Dondo, Lichinga, Mandje, Cuamba, Zitundo and other locations “to be determined”, as well as new onshore wind capacity of between 200 and 500 MW, namely in Inhambane, Lagoa Pati.

“Large industrial investors with large clean energy needs should be encouraged through a supportive business and regulatory environment to develop large-scale solar and wind energy projects,” the document adds.

By 2050, the target is to install at least 7.5 GW of solar photovoltaic capacity and up to 2.5 GW of wind power capacity in Mozambique.

“To ensure price optimisation and accelerate the expansion of solar and wind capacity, the government should build on the Mozambique Renewable Energy Auction Programme, whose principles introduced ‘competition in the award of renewable energy contracts’,” the document says.

“The rapid growth of solar expansion in South Africa following the introduction of auctions is a regional example to follow,” says ETS, which also highlights “long-term” initiatives.

“Continue to gradually develop the latest solar and wind generation potential to meet growing electricity demand. A true ‘solar revolution’ will be needed to meet Mozambique’s growing consumption in a clean way,” the document says.