Mozambique Launches $110 Million Solar Energy Investment in Gaza Province

A private Mozambican group will invest $110 million in a solar power plant in Gaza province, aiming for a 95 MW capacity. This project supports the public grid and reflects Mozambique’s broader goal of expanding renewable energy, targeting 1,000 MW by 2030. Despite recent growth, solar energy remains a small fraction of the total energy supply, emphasizing the need for strategic investment and development in renewable sources.

A private Mozambican group will invest US$110 million in establishing a solar power plant in Gaza province, southern Mozambique. This initiative, revealed in the Environmental Impact Study for the Chibuto Solar Power Plant, aims to achieve an installed capacity of 95 MW through a collaboration between Sal Energia and the state-run Elétrica de Mozambique (EDM) to enhance the public grid’s capacity.

The project will occupy a 211-hectare area in Chibuto Sede and will involve constructing a 275KV transmission line, approximately 10 kilometers long, connecting the solar plant to the Chibuto substation. Solar energy production in Mozambique saw an 18.6% increase in 2024, yet it still constitutes less than 1% of the nation’s total electricity generation.

According to a budget execution report, electricity output from the nation’s solar parks and smaller plants surpassed 101,247 MegaWatt-hours (MWh) from January to December 2024, compared to 85,343 MWh in 2023. The government had previously aimed for a production target of 138,808 MWh from existing solar parks last year, a target which was not achieved. Despite the increase in solar output, solar energy contributed only 0.5% to Mozambique’s overall electricity production in the last year.

Hydroelectric plants dominated electricity generation, comprising 83.8% of total production, with the Cahora-Bassa Hydroelectric Plant accounting for 81.7%. Mozambique has plans for solar energy projects across at least five regions by 2030, targeting a cumulative capacity of 1,000 MW, which is part of an anticipated solar transition.

The Energy Transition Strategy (ETS) document underscores the importance of these projects in addressing Mozambique’s future energy dilemmas. Past endeavors have resulted in the connection of 80 MW of a 125 MW solar power initiative to the grid. The strategy anticipates investments of around US$80 billion by 2050, with a goal to develop at least 1,000 MW of new solar capacity and 200 to 500 MW of onshore wind power by 2030.

The document further encourages large industrial investors to engage in substantial solar and wind energy projects within a supportive business environment. By 2050, Mozambique aims to achieve a solar photovoltaic capacity of at least 7.5 GW and wind power capacity of up to 2.5 GW, necessitating the enhancement of its Renewable Energy Auction Programme to foster competitive bidding for renewable energy contracts. The Energy Transition Strategy advocates for a sustained development of solar and wind energy to meet the increasing demand for clean electricity.

In conclusion, Mozambique is poised to advance its solar energy initiatives significantly with a US$110 million investment from a private group. The Chibuto Solar Power Plant project reflects a growing commitment to renewable energy, with expectations of meeting ambitious production targets by 2030. The Energy Transition Strategy highlights the pathway for increased solar and wind capacity, encouraging industrial participation while addressing the nation’s energy needs sustainably. The focus on competitive auctioning for renewable energy contracts points towards a strategic approach for economic growth and energy independence.

Original Source: clubofmozambique.com