AFD finances the construction of Mozambique's second solar power plant

Grid access has tripled in Mozambique over the past ten years, rising from 8% in 2006 to 31% in 2019. Demand for electricity will continue to grow at an annual rate of 7-8%, driven by socio-economic growth. The government's goal of achieving universal access by 2030 will require significant development of renewable energy generation capacity and mobilization of the private sector to invest in sustainable infrastructures.

The project involves building and operating a 41 MWp photovoltaic power plant for 25 years. The plant will be located on 138 hectares of land in northern Mozambique. The investments to be made by the project company, Central Solar Metoro, include the construction of the photovoltaic power plant, as well as a 100-meter transmission line and an electrical substation, which will be handed over to EDM, the offtaker.

The project is expected to have a significant impact on the development of the country and the region:

• Strengthening of the country's energy infrastructure, with 62.5 GWh of green electricity injected into the Mozambican grid each year;
• Access to electricity for around 135,000 people;
• Contribution to the fight against climate change, with 49,000 tons of CO2 avoided per year, or 1,221 ktons of CO2 avoided over the life of the project;
• Direct support for Mozambique's economy through an annual contribution to the country's GDP, support for employment (an estimated 70 jobs supported per year), skills transfer to nearly 400 Mozambican workers employed by the project, and positive effects on the development of local industry, which will benefit from the improved capacity and reliability of the power grid.