Page 12 - Energize January 2022

NEWS

Mozambique’s Paris-aligned Temane Power Project

Reaches Financial Close

APUTO: 08 December 2021: Globeleq, Africa’s leading electricity and increasing generation. These are important
independent power company and its partners, development gains that will spur further economic development
MElectricidade de Moçambique, E.P. (EDM) and Sasol, have in communities across the country.
announced financial close of the Central Termica de Temane power Abdulhamid Alkhalifa, Director General of the OPEC Fund said:
project (CTT). “The OPEC Fund supports the development of the Temane power
Debt financing of the US$652.3 million project is being plant, as well as the complementary transmission infrastructure
provided by IFC, together with its “B” loan participants FMO and through its private and public sector loan facilities. Our assistance
Emerging Africa Infrastructure Fund (together US$253.5 million), US reflects our commitment to the Sustainable Development Goal
International Development Finance Corporation (DFC) (approximately 7- Affordable and Clean Energy. Once completed, Temane will
US$191.5 million) and the OPEC Fund for International Development increase the supply of efficient and affordable energy to households,
(OPEC Fund) (US$50 million). The Multilateral Investment Guarantee businesses, and industries, contributing to social and economic
Agency (MIGA) has provided up to $251.3 million in political risk development in Mozambique and the region.”
insurance to the private sector equity investors. The Minister of Mineral Resources and Energy, Hon. Ernesto Max
Located at Temane in Inhambane Province, CTT consists of a Elias Tonela confirmed: “As a country that is at risk from the worst
450 MW gas-fired power plant which will supply power to EDM effects of climate change, our government fully supports the Paris
under a 25-year tolling agreement. CTT is expected to provide Agreement. We are working on our long-term decarbonization plans
electricity to meet the demand of 1.5 million households and will in line with that Agreement and CTT is fully in line with our transition
contribute about 14% of the electricity supply capacity available to which also includes developing hydro, solar and wind projects.”
meet demand in Mozambique. The project will be built by the Spanish contractor TSK, utilising
The project is aligned with the Paris Agreement and will support efficient and well-proven Siemen’s gas turbine technology. TSK has
Mozambique’s longer-term sustainable energy transition to net-zero extensive experience in designing and constructing similarly sized
by 2050. CTT’s flexible technical and commercial configuration allows combined-cycle power plants and will leverage their in-country
for a variable supply of baseload and dispatchable power and will construction experience during the 34-month construction period.
deliver complementary power so that Mozambique can maximise CTT is expected to generate around 830 jobs during construction
renewable energy generation projects on its grid and pursue lower and 90 permanent jobs during operations. This excludes engineering
carbon energy development. In addition, the Siemens SGT-800 and other work performed off-site. Mozambicans will be prioritized
turbines chosen for the plant can be upgraded to handle high for jobs during both construction and operations. It is estimated
hydrogen content, further reducing the plant’s carbon impact. that the project will support the creation of 14,000 indirect jobs and
CTT also anchors a new 563 km high-voltage transmission line livelihoods when it becomes operational in 2024.
(the Temane Transmission Project (TTP)), and secures the first Mike Scholey, CEO of Globeleq, indicated: “Globeleq is
phase of the interconnection of the southern grid to the central committed to supporting the Government’s aim of achieving
and northern grids of Mozambique. This will establish a corridor of universal electricity access by 2030 and positively impacting the
electrification and ensure a more stable and secure grid, enabling regional energy landscape. The Government of Mozambique,
the connection of future renewable generation projects. The TTP through EDM, is a strategic partner for Globeleq as we grow to
is owned by EDM and will be funded using grant and concessional develop other projects in renewables, such as the Cuamba solar and
finance provided by the World Bank, Africa Development Bank, battery project and other wind and solar developments underway.”
Islamic Development Bank, OPEC Fund and the Norwegian
Government. Together, the entire value chain (gas development,
gas fired power plant and transmission infrastructure) will see an
investment of more than US$2 billion.
“This pioneering project has the potential to deliver significant
economic and social benefits by helping meet Mozambique’s
growing demand for power and support the country’s economic
recovery and the region’s energy transition. This is our third power
investment in Mozambique, and we remain committed to supporting
the sustainable development of the country’s electricity sector”,
said Linda Munyengeterwa, IFC’s Regional Industry Director for
Infrastructure, Middle East & Africa.
DFC financing for this project will support people and
businesses throughout Mozambique by reducing the cost of

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