Mozambique solar container power station subsidy policy

How is Mozambique diversifying its energy mix?

Mozambique is diversifying its energy mix by inviting private The output of the power project developers to sell electricity to the state-owned in this case study will be national power utility, Electricidade de Moçambique (EDM), a 25-year power purchase as independent power producers (IPPs). This Model Business (PPA) to EDM.

Who owns the Mozambican power station?

The power station was developed by a consortium comprising Neoen, a French independent power producer (IPP) based in Paris, France and Electricidade de Moçambique (EDM), the Mozambican electricity utility company. Construction began in October 2020, with commercial commissioning expected in the fourth quarter of 2021.

How many solar panels does Moçambique have?

The solar farm sits on 138 hectares (340 acres) of land. The power station has a maximum generation capacity of 41 megawatts. It comprises 121,500 solar panels. Its output is sold directly to the Electricidade de Moçambique (EDM), for integration into the national grid, under a 25-year power purchase agreement.

How many jobs will the Mozambican solar farm provide?

The project will provided 380 jobs during construction and 25 permanent jobs after commercial commissioning. The completed solar farm was commercially commissioned in April 2022, in the presence of Filipe Nyusi, the Mozambican president.

What is the minimum IRR for a project in Mozambique?

Purely financial investors such as AIIM will likely require a minimum equity IRR of 15% to invest in a project in Mozambique. Hybrid developer/financial investors such as Serengeti Energy or Berkeley Energy might accept a minimum equity IRR of 12% as they also earn on the developer fee.23

Who should invest in a project in Mozambique?

Utility investors such as Engie, EDF or Enel – who have deep sources of low-cost capital – might accept 8% equity IRR as they also earn revenues as EPC and O&M contractors and have long-term strategic objectives. Purely financial investors such as AIIM will likely require a minimum equity IRR of 15% to invest in a project in Mozambique.