Scatec Solar signs 40-MW PPA in Mozambique

Norway’s Scatec Solar ASA on Monday signed a power purchase agreement (PPA) with state-owned utility Electricidade de Mozambique (EDM) for a 40-MW solar photovoltaic (PV) project in Mozambique’s central-coastal region.

Apart from the 25-year off-take contract, Scatec Solar also entered into a shareholder agreement with EDM and KLP Norfund Investments AS. Under its terms, Scatec Solar will hold a 52.5% interest in the project, while the utility and the Norfund unit will receive stakes of 25% and 22.5%, respectively. The three partners will provide equity financing, while the International Finance Corporation (IFC) and the Emerging Africa Infrastructure Fund plan to contribute debt funding.

The plant will be constructed near the city of Mocuba in Zambezia province for an estimated total cost of USD 80 million (EUR 72.8m). Financial close is expected to be achieved in the first quarter of 2017 and will be followed with the start of construction works.

This would be the first large-scale solar power facility to be built in the country, the Norwegian firm said.

(USD 1.0 = EUR 0.910)

Choose your newsletter by Renewables Now. Join for free!