The CEO of Norfund, Kjeli Roland has said that access to reliable energy is a prerequisite for development.This is as statistics reveal only 3% of the world’s electricity is generated in Africa, although 15% of the world’s population lives in Africa.
Kjeli stated this at the signing of the Power Purchase Agreement between Scatec Solar and Norfund in Maputo, the agreement secures the sale of solar power over a 25 year period to the state owned utility Electricidade de Mozambique (EDM).
The signing ceremony saw the presence of Norwegian Minister of Foreign Affairs, Mr. Børge Brende, the Mozambican Minister of Mineral Resources and Energy, Mrs. Letícia Klemens as well as Chairman & CEO of EDM, Dr. Mateus Magala.
The project is the first large scale solar plant to be built in the country and represents an important first step in realizing Mozambique’s ambition to increase renewable power generation in its energy mix.
“This is an excellent example of how private public partnerships can deliver renewable energy and support further economic growth in Mozambique.”
“EDM and the government of Mozambique have demonstrated strong leadership in taking this project forward and it paves the way for further investments in renewable energy in the country,” Scatec Solar CEO, Raymond Carlsen said.
A shareholder agreement was also signed between KLP Norfund Investments AS, Scatec Solar and EDM.
The required project investment is estimated at USD 80 million. Scatec Solar (52.5%), KLP Norfund Investments (22.5%) and EDM (25%) will provide equity, while IFC, the International Finance Corporation, a member of the World Bank Group, and the Emerging Africa Infrastructure Fund intend to provide project finance debt.
The parties are targeting financial close and solar plant construction start in the first quarter of 2017.
The project is a result of strong partnership between the governments of Norway and Mozambique. The Norwegian government has provided economic support as well as technical expertise to the energy sector in Mozambique for several years.
