Mozambique has selected a consortium including TotalEnergies and Electricite de France in a $4.5 billion hydroelectric project in the south-east African nation as investment in clean energy continues to climb.
The 1,500-megawatt Mphanda Nkuwa dam and an associated transmission line is aimed at easing the power crisis in the region, Bloomberg reported on Friday26th May, citing a government statement.
Japan’s Sumitomo is also part of the consortium.
Mphanda Nkuwa is located on the Zambezi river, about 60km downstream of the existing Cahora Bassa hydroelectric dam that has the capacity to generate 2,075MW of power, more than half of which is sold to South Africa.
The government expects a financial close on the project in 2024 and completion by 2030, with the partners, needing to invest between $500 million and $700 million.
Investment in clean energy is set to hit $1.7 trillion this year, outpacing spending on fossil fuels, as countries look to address potential energy shortages, the International Energy Agency has said.
Global energy investment is expected to grow to $2.8 trillion in 2023, with more than 60% allocated to clean technology, including renewables, electric vehicles, nuclear power and heat pumps, the Paris-based agency said in its World Energy Investment report on Thursday 25th May.
“Clean energy is moving fast – faster than many people realize. This is clear in the investment trends, where clean technologies are pulling away from fossil fuels,” said Fatih Birol, the agency’s executive director.
“For every dollar invested in fossil fuels, about $1.70 is now going into clean energy. Five years ago, this ratio was one to one.”
Global investment in energy transition technology must quadruple to $35 trillion by 2030 to stay in line with commitments made under the Paris climate agreement, according to the International Renewable Energy Agency.