HCB and IFC sign cooperation agreement for the development of a Solar Power Plant in Mozambique

Hidroléctrica de Cahora Bassa (HCB) and the International Finance Corporation (IFC) signed on October 16th a Cooperation Agreement for the development of a large-scale photovoltaic generation power plant in Mozambique, which will contribute to the supply of renewable energy in the country.

Under this agreement, HCB and IFC will carry out a pre-feasibility study to develop a solar photovoltaic generation power plant of up to 400MW in Matambo, Changara District, Tete Province, in the central region of the country.

The first phase of the project will focus on defining the main features of the power plant, including the design capacity, the conceptual design and the assessment of environmental and social criteria.

"This agreement represents the fulfilment of HCB's strategy of diversification and expansion of its generation capacity, in addition to minimizing the impact of reduced production during the rehabilitation and modernization of HCB's South Power Plant. In addition, we plan to increase HCB's generation capacity to around 4,000 MW by 2032. This target comes from the current installed capacity, the future North Power Plant, the Photovoltaic Power Plant and other renewable energy projects that are in the feasibility study phase", said Tomás Matola, Chairman of the Board of Directors of HCB.

"Increasing access to reliable and affordable energy is critical to Mozambique's continued economic growth and development," said Katia Daude, IFC's Acting Country Director for Mozambique. "Access to energy drives inclusive growth, creates jobs and supports economic activity. IFC's partnership with HCB will help Mozambique increase its energy supply and further position the country as a regional energy supplier."

The planned solar photovoltaic power plant will contribute to the commitment made by the Government of Mozambique at COP26 to generate 62% of the country's energy from renewable sources by 2030. Through the export of energy, it will contribute to meeting the growing demand for electricity in Mozambique and in some countries in the Southern African region.

Source: HCB