Mozambique solar container power station procurement

Who is building a solar power plant in Mozambique?

The Spanish group TSK has won the contract to build the Cuamba solar power plant in the Niassa province of Mozambique.

How is Mozambique diversifying its energy mix?

Mozambique is diversifying its energy mix by inviting private The output of the power project developers to sell electricity to the state-owned in this case study will be national power utility, Electricidade de Moçambique (EDM), a 25-year power purchase as independent power producers (IPPs). This Model Business (PPA) to EDM.

Who should invest in a project in Mozambique?

Utility investors such as Engie, EDF or Enel – who have deep sources of low-cost capital – might accept 8% equity IRR as they also earn revenues as EPC and O&M contractors and have long-term strategic objectives. Purely financial investors such as AIIM will likely require a minimum equity IRR of 15% to invest in a project in Mozambique.

What is the minimum IRR for a project in Mozambique?

Purely financial investors such as AIIM will likely require a minimum equity IRR of 15% to invest in a project in Mozambique. Hybrid developer/financial investors such as Serengeti Energy or Berkeley Energy might accept a minimum equity IRR of 12% as they also earn on the developer fee.23

How will the Metoro solar power plant be financed?

In line with the funding structure of the Metoro Solar Power Plant, it is assumed that the Project will be financed with 71.4% debt and 28.6% equity (Table 3). Two debt financing scenarios were considered: i) EUR-denominated debt; and ii) MZN-denominated debt.

Is a 40 MWp solar PV project viable?

A detailed financial analysis of Case (MBC) analyses the financial feasibility of a hypothetical the Project was conducted to determine its viability and 40 MWp solar PV independent power project without its ability to adequately service debt while providing batteries in Mozambique (“the Project”). A solar PV plant attractive returns to investors.