AfDB approves disbursement of USD 2.5 million to develop renewable energy in Mozambique
The African Development Bank (AfDB) meeting in its Board of Directors on October 14, 2022, approved a disbursement of USD 2.5 million for Mozambique.
This disbursement under the AfDB grant will be used to develop renewable energies in Mozambique.
According to this announcement by the African Development Bank, these resources from the Sustainable Energy Fund for Africa (SEFA) will be used to implement the Mozambique Renewable Energy Integration Program (MREP).
” With the support of the Sustainable Energy Fund for Africa, Mozambique’s capacity to integrate a greater volume of renewable energy will increase, which will contribute to the country’s efforts to become one of the main regional energy suppliers “, said Daniel Alexander Schroth, Director of the African Development Bank’s Renewable Energy and Energy Efficiency Department.
Exposed to the effects of climate change, Mozambique should use this sum freed up by the AfDB to build a more sustainable and resilient electricity generation infrastructure.
This financing must provide technical assistance to the national electricity company in four areas, namely financial support for technical, economic, environmental and social feasibility studies for the development of a floating solar power plant in the Chicmaba dam reservoir; provide financial support for a feasibility study for the storage of energy battery systems in up to 10 sites across the country; build the technical capacity of Electricidade de Moçambique (EDM) staff; and support the preparation of tenders.
“We are very happy to launch the activities of the Sustainable Energy Fund for Africa in Mozambique, which comes with very strategic and innovative projects, which will help diversify the energy matrix and carry out a study on storage needs, to develop more renewable energy projects. said Marcelino Gildo Alberto, President of Electricidade de Moçambique.
The donation will also be used to conduct studies aimed at increasing the share of variable renewable energy production in Mozambique’s energy mix. Feasibility studies to develop floating photovoltaic solar energy will be carried out in the existing hydroelectric installations of Electricidade de Moçambique.
It should be recalled that the African Development Bank is providing more than $400 million in financing for the Mozambique liquefied natural gas (LNG) project currently under way, at a total cost of $20 billion. The Bank supports power generation, transmission and distribution, such as the Tamine Gas Project.