Mozambique's First Utility Scale Solar Power Plant Secures $55 Million Financing

Mozambique's first ever utility scale solar power plant has received financing to the value of $55 million. The financing package is provided by the International Finance Corporation (IFC), a member of the World Bank Group.

This will support the development of a 40,5 MW solar photovoltaic plant in Mocuba, Mozambique, being developed by Norway-based independent power producer Scatec Solar.

“Scatec Solar is committed to harnessing Mozambique's solar potential and infusing grid stability. This is especially important for a country that relies on a long distance power transmission system that is vulnerable to interruptions. We will leverage IFC's knowledge and support to ensure greater resilience for the country's electricity sector,” said Raymond Carlsen, CEO at Scatec Solar ASA.

The financing is said to include $19 million from IFC's own account, $19 million from Climate Investment Funds, and a syndicated loan of up to $17 million.

Our investment in Mozambique's first utility scale solar power plant reaffirms IFC's commitment to renewable energy in emerging markets,” said IFC Country Manager Jumoke Jagun-Dokunmu.

The project will also receive a $7 million Viability Gap Funding grant from the Technical Assistance Fund of the Private Infrastructure Development Group, a multi-donor funded institution that encourages private investment in infrastructure in emerging markets.

"There is limited access to electricity in Mozambique, particularly in rural areas. This investment will expand electricity supply in one of the least developed regions of the country while also supporting electricity infrastructure and promoting foreign direct investments at an important time.” concluded Jagun-Dokunmu.

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