Globeleq, a prominent power company operating in Africa, has made a significant move to bolster its renewable energy portfolio by agreeing to acquire Scatec A.S.A.’s 52.5 percent stake in the 41 MW Central Solar de Mocuba solar PV power plant (Mocuba).
In addition to this, Globeleq will also purchase KLP Norfund Investments A.S.’s 22.5 percent stake in the plant, further cementing its position in the African renewable energy market.
With this strategic acquisition, Globeleq’s ownership in the Mocuba power plant will increase to 75 percent, granting the company full control over the management and operation of the facility. The remaining 25 percent will continue to be held by Electricidade de Moçambique (EDM), the national power company.
The Mocuba power plant, situated on a vast 126-hectare site approximately 13 kilometers from Mocuba city in Zambezia province, central Mozambique, reached financial close in March 2018 and completed its construction in August 2019.
Under a 25-year power purchase agreement, EDM serves as the off-taker, ensuring that the electricity produced is supplied directly into the national grid. The project has received vital support from the International Finance Corporation and the Emerging Africa Infrastructure Fund as lenders.
This strategic move by Globeleq not only enhances their operational footprint in Mozambique but also complements their ongoing ventures in the country. Globeleq is currently in the process of commissioning a 19 MW solar and 7MWh energy storage project at Cuamba, and concurrently constructing a substantial 450 MW gas-to-power project at Temane. Furthermore, Globeleq is taking the lead in the development of a 120 MW wind project at Namaacha, situated near Maputo.
The acquisition of the majority stake in the Mocuba solar PV power plant is pending regulatory and lender approvals. It is anticipated to conclude in the first half of 2024, subject to the required authorizations. After the completion of this transaction and the commissioning of the Cuamba Solar plant, Globeleq’s solar portfolio in Africa is expected to reach an impressive 400 MW across South Africa, Egypt, Kenya, and Mozambique.
This latest investment by Globeleq underscores the company’s commitment to sustainable and clean energy solutions, contributing significantly to the growth and development of the renewable energy sector in Africa.