The Mozambican government and French solar company, Neoen, have formalised a concession agreement for the construction of a solar power plant at the cost of $50 million.
The deal was formalised Monday, 17 December 2018, by Mozambique’s Mineral Resources and Energy minister Max Tonela, the representative of the state power utility Electricidade de Moçambique (EDM), Carlos Yum, and the Neon representative, Cyril Perrin.
The 40MW plant is to deliver power to the national grid and produce energy for some 175,000 households that will be built in the administrative post of Metoro, district of Ancuabe in the country’s northern province of Cabo Delgado.
The solar plant has a capacity to produce about 41 megawatts (MW) of electricity and improve the quality and availability of electricity in the northern region of the country.
Tonela said shortly after signing the contract that the project is of utmost importance to the government, as it is aligned with the objectives of the Executive, which seek to accelerate the country’s electrification.
“This is a list of priority projects recently approved under the EDM Master Plan,” Tonela added.
The Neon representative said that the project “will contribute to the improving of electricity supply in the northern part of the country and this project is also exemplary, because it will use technologies that combine the need for development and the internationally set targets for greenhouse gas reduction”.
The official added that the project is the first large scale solar plant to be built in the country and represents an important first step in realizing Mozambique’s ambition to increase renewable power generation in its energy mix.