Scatec Solar and Norfund have signed a 25-year power purchase agreement to sell electricity from a 40MW solar plant in Mozambique to state-owned utility Electricidade de Mozambique (EDM).
The $80m project, which is the first large-scale solar plant to be built in the country, is located close to the city of Mocuba in Zambézia province.
It is expected to deliver 77,000MWh a year of electricity to the northern regions of Mozambique.
A shareholder agreement was also signed between KLP Norfund Investments (22.5%), Scatec Solar (52.5%) and EDM (25%) to provide equity for the project.
In addition, the International Finance Corporation, the private sector arm of the World Bank, and the Emerging Africa Infrastructure Fund will provide project finance debt.
The parties are targeting financial close and solar plant construction start in the first quarter of 2017.
Image: Scatec Solar
Scatec catches Mozambique rays
State-owned utility signs 25-year PPA for electricity from 40MW project
By EBS