Dec 14 | 2023
The Mozambican government has officially selected a consortium of EDF, TotalEnergies and Sumitomo Corporation as the strategic partner to develop the Mphanda Nkuwa hydropower project
The Mozambican government has officially selected a consortium of EDF, TotalEnergies and Sumitomo Corporation as the strategic partner to develop the Mphanda Nkuwa hydropower project, a 1.5 gigawatt run- of-river plant on the Zambezi River.
Mozambique picked the consortium in May as strategic partners in the hydropower project valued at $4.5 billion.
On Wednesday, the consortium signed a joint development agreement with the state- owned entities Electricidade de Moçambique and Hidroeléctrica de Cahora Bassa, which will hold a 30% stake in the project. The consortium will own the remaining 70%, according to a joint statement released by TotalEnergies.
“TotalEnergies is delighted to be able to expand its presence in Mozambique beyond the Mozambique LNG project with a large investment in renewable energy, which will benefit the people of Mozambique,” SVP Africa Mike Sangster and SVP Renewables Vincent Stoquart at TotalEnergies, said in the statement.
“It is a new example of TotalEnergies’s ability to implement its multi-energy strategy in oil & gas countries to support them in their energy transition.”
The consortium also signed a framework agreement with the Ministry of Mineral Resources and Energy, setting the stage for the future concession agreement.
Boosting access to electricity with hydropower
The Mphanda Nkuwa project, located 60 kilometers downstream from Cahora Bassa and 60 kilometers from Tete City, will increase Mozambique’s available electricity production capacity by more than 50% and could power more than 3 million households in Mozambique and the surrounding region, the statement said.
“This project will significantly enhance the access to electricity in the region and is fully in line with EDF’s ambition to build a net zero energy future with electricity and innovative solutions that drive economic development”, EDF Group Senior Executive Vice-President, International Division, Béatrice Buffon, said.
The consortium is betting on EDF's extensive hydropower experience and technical expertise, TotalEnergies' know how in developing large and complex integrated energy projects worldwide, especially in Africa, and Sumitomo's global experience in financing strategic independent power producer projects, including in Sub-Saharan Africa, to bring the project to life.
“We are pleased to get involved the Mphanda Nkuwa Hydropower Project,” Corporate Officer, General Manager, Global Power Infrastructure Business Division, at Sumitomo, Koichi Taniguchi, said.
“This project will contribute to the increase of access to electricity around the regions as well as becoming a green energy hub in southern African countries.”
The consortium says it will work closely with the Mozambican authorities and stakeholders to ensure the project is developed in a sustainable and responsible manner, respecting the highest environmental and social standards.
The Mozambique government expects financial close on the project in 2024 and completion by 2030.
The Mphanda Nkuwa Hydropower Project, once complete, is expected to supply power to meet growing domestic demand in Mozambique, while the remaining output would be exported to neighbouring countries, including South Africa where demand for clean energy remains high.
Mozambique picked the consortium in May as strategic partners in the hydropower project valued at $4.5 billion.
On Wednesday, the consortium signed a joint development agreement with the state- owned entities Electricidade de Moçambique and Hidroeléctrica de Cahora Bassa, which will hold a 30% stake in the project. The consortium will own the remaining 70%, according to a joint statement released by TotalEnergies.
“TotalEnergies is delighted to be able to expand its presence in Mozambique beyond the Mozambique LNG project with a large investment in renewable energy, which will benefit the people of Mozambique,” SVP Africa Mike Sangster and SVP Renewables Vincent Stoquart at TotalEnergies, said in the statement.
“It is a new example of TotalEnergies’s ability to implement its multi-energy strategy in oil & gas countries to support them in their energy transition.”
The consortium also signed a framework agreement with the Ministry of Mineral Resources and Energy, setting the stage for the future concession agreement.
Boosting access to electricity with hydropower
The Mphanda Nkuwa project, located 60 kilometers downstream from Cahora Bassa and 60 kilometers from Tete City, will increase Mozambique’s available electricity production capacity by more than 50% and could power more than 3 million households in Mozambique and the surrounding region, the statement said.
“This project will significantly enhance the access to electricity in the region and is fully in line with EDF’s ambition to build a net zero energy future with electricity and innovative solutions that drive economic development”, EDF Group Senior Executive Vice-President, International Division, Béatrice Buffon, said.
The consortium is betting on EDF's extensive hydropower experience and technical expertise, TotalEnergies' know how in developing large and complex integrated energy projects worldwide, especially in Africa, and Sumitomo's global experience in financing strategic independent power producer projects, including in Sub-Saharan Africa, to bring the project to life.
“We are pleased to get involved the Mphanda Nkuwa Hydropower Project,” Corporate Officer, General Manager, Global Power Infrastructure Business Division, at Sumitomo, Koichi Taniguchi, said.
“This project will contribute to the increase of access to electricity around the regions as well as becoming a green energy hub in southern African countries.”
The consortium says it will work closely with the Mozambican authorities and stakeholders to ensure the project is developed in a sustainable and responsible manner, respecting the highest environmental and social standards.
The Mozambique government expects financial close on the project in 2024 and completion by 2030.
The Mphanda Nkuwa Hydropower Project, once complete, is expected to supply power to meet growing domestic demand in Mozambique, while the remaining output would be exported to neighbouring countries, including South Africa where demand for clean energy remains high.
