Globelec to acquire majority stake in Mocuba Solar Power Plant
London, 19 Jul (AIM) – London-based independent power producer Globeleq (an institution formed by Norwegian and British funds) on 18 July announced that it has reached an agreement to buy Scatec’s 53.5 per cent stake in the Mocuba Solar Power Plant in the central Mozambican province of Zambezia.
In addition, it will buy the 22.5 per cent stake belonging to the Norwegian Investment Fund, Norfund.
This will give it a 75 per cent stake in the 41-megawatt project with the remaining share held by Mozambique’s publicly-owned electricity company, EDM.
The Mocuba power plant is located on 126 hectares in a rural setting approximately 13 kilometres from the city of Mocuba. The project reached financial close in March 2018 with construction completed in August 2019.
EDM has a 25-year power purchase agreement in place, with the electricity being fed into the national grid. This guarantee enabled funding for the project to be provided by the International Finance Corporation and the Emerging Africa Infrastructure Fund.
Globeleq is a major player in the energy market development in Mozambique. Currently, the company is in the process of commissioning the Cuamba Solar Photovoltaic Project, a 19-megawatt peak facility in the northern province of Niassa. This project will also include Mozambique's first grid-scale battery storage system, with a capacity to store two megawatts (seven megawatt-hours).
Globeleq is also undertaking the construction of the Temane Power Project (CTT), a 450-megawatt gas-powered facility in the southern province of Inhambane. Once operational, the project will be the largest power station built in Mozambique since its independence in 1975.
In addition, Globeleq is leading the development of the Namaacha wind project, a 120-megawatt facility located near the border with South Africa.
Mike Scholey, the company's chief executive, expressed his satisfaction with Globeleq's continuous expansion in Mozambique. He stressed, “I am very pleased that Globeleq is continuing to build its presence in Mozambique through the purchase of the Mocuba solar plant. This acquisition, alongside our other projects, demonstrates our commitment both to Mozambique and to building our renewable power portfolio in Africa”.
The Mocuba transaction is subject to regulatory and lender approval and is expected to be completed in the first half of 2024.