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BAD finances with 38.5 million connection to future plant in Namaacha

A new infrastructure project is set to transmit up to 332 gigawatt-hours of clean wind energy from the upcoming 120 MW Namaacha wind power plant, located in the southwestern region of Mozambique, to homes and businesses in Mozambique as well as the broader Southern African region, according to a statement from the African Development Bank (AfDB).

Funding for the 43-kilometer Namaacha-Boane Transmission Line and its related electrical infrastructure comprises $33.2 million (€29.3 million) from the African Development Fund and $10.4 million (€9.2 million) from its Climate Action Window, a fund dedicated to supporting 37 low-income African countries with climate-resilient infrastructure, aiming to fulfill commitments under the Paris Agreement.

“This project marks a significant step forward in Mozambique’s transition to a low-carbon energy future,” stated Kevin Kariuki, AfDB Group Vice President for Power, Energy, Climate and Green Growth, in the release, assuring that it will “provide affordable electricity, support local industry, and improve livelihoods.”

Upon completion, the wind power plant project in the south of the country is expected to support thousands of new electrical grid connections in rural and disadvantaged communities and reduce carbon dioxide emissions by over 71,000 tons per year, enhancing regional energy trade within the Southern African Power Pool.

The United States also announced, in July 2024, support for the construction and operation of Mozambique’s first wind farm in Namaacha, with nearly $180 million (€158.8 million) through the development agency, the International Development Finance Corporation (DFC).

According to information from the DFC, initially reported by Lusa, the approved support involved a loan of up to $99 million (€87.3 million), along with $80 million (€70.5 million) in political risk insurance for Globeleq Africa Limited, the company responsible for the project.

The support would facilitate the development, construction, and operation of a 120 MW wind power plant in Namaacha, Maputo Province, southern Mozambique.

“The country’s first wind energy project will increase the supply of low-cost clean electricity to the national grid and regional markets, to enhance reliable energy access,” the DFC statement reads.

Since 2002, Globeleq, a leading energy company in Africa, has constructed a diverse portfolio of independent power plants, generating over 1,500 MW across 15 locations in seven countries, including Mozambique. The company has over 741 MW under construction and more than 2,000 MW in energy projects in development.

Mozambique anticipates investments of $80 billion (€70.5 billion) in the Energy Transition Strategy (ETS) by 2050, a roadmap presented by the country in November 2023 at the climate summit in Dubai.

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