Globeleq Mozambique Solar Projects - Central Eléctrica de Tetereane, S.A.

Project description 

This summary covers an application by Globeleq Africa Limited (GAL) for its equity and quasi-equity investments in Central Eléctrica de Tetereane, S.A. (CET), a renewable energy project in Mozambique (the Project). GAL is seeking cover for up to USD 8.32 million for CET against the risks of transfer restriction and breach of contract for a guarantee period of up to 20 years.   

CET is an operating power station of in the Cuamba district, Niassa Province in Northern Mozambique, comprising a solar photovoltaic facility with a generation capacity of 18.75 MWp (15 MWac) and a battery storage facility of 1.86 MW/ 6.7 MWh. The power plant reached commercial operation date in September 2023 and supplies electricity through a 25-year power purchase agreement with EDM. CET is the first IPP in Mozambique to integrate a utility-scale Battery Energy Storage System (BESS) which enables energy generated from the plant to be flexibly deployed at peak demand times and enhancing network resilience. 

Environmental Categorization 

The Project is a category B under MIGA’s Policy on Environmental and Social Sustainability.  Click here to view the Environmental and Social Review Summary.  

Development Impact  

The Project’s primary development impact comes from the energy delivered to the off-taker and the reduction in GHG emissions savings. Center-northern Mozambique suffers from low electricity access due to its isolation from main generation center in the South, significant transmission losses and an overreliance on power supply from the Cahora-Bassa hydropower plant. As a result, the Project helps improve the security of energy supply in center-northern Mozambique, while diversifying the energy mix. By adding clean energy capacity, the Project also contributes to reduce GHG emissions and decrease the reliance on fossil fuels. In addition, the Project’s battery storage system has high replication potential given the upcoming private investments in utility-scale solar PVs in Mozambique.  The Project aligns with the World Bank Group's Country Partnership Framework for Mozambique for FY23-27, as it promotes private sector interventions in the renewable energy sector to support the country's electricity access strategy.