Africa|Business|Energy|Financial|Gas|Hydropower|Infrastructure|Oil And Gas|Oil-and-gas|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Sustainable|Solutions|Environmental|Infrastructure
Africa|Business|Energy|Financial|Gas|Hydropower|Infrastructure|Oil And Gas|Oil-and-gas|Power|PROJECT|Projects|Renewable Energy|Renewable-Energy|Sustainable|Solutions|Environmental|Infrastructure

Consortium appointed to develop Mozambique hydropower project

The Zambezi river

The Zambezi river

Photo by Reuters

13th December 2023

By: Schalk Burger

Creamer Media Senior Deputy Editor


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A consortium comprising of energy companies EDF, TotalEnergies and Sumitomo Corporation, has been selected as the strategic partner by the government of Mozambique and has entered into a joint development agreement (JDA) for the development of the Mphanda Nkuwa hydropower project (MNK).

The MNK is a proposed 1 500 MW run-of-river hydropower project to be located on the Zambezi river, 60 km downstream from Cahora Bassa and 60 km from Tete City.

Throughout the development of the project, the consortium will leverage EDF’s hydropower experience and technical expertise, TotalEnergies’ know-how in developing large and complex, integrated energy projects worldwide, especially in Africa, and Sumitomo’s global experiences in financing strategic independent power producer projects, including in sub-Saharan Africa.

The MNK will increase Mozambique’s available electricity production capacity by more than 50%. It will help promote economic and social growth in Southern Africa and make a significant contribution to the region’s energy transition by providing reliable, competitive, renewable electricity.

The next development step will consist in performing additional studies, the output of which will help define the best options in terms of environmental and social impact while ensuring the technical and financial viability of the project.

The project is supported by development finance institutions the African Development Bank and the International Finance Corporation.

“The project will implement the highest international standards in environmental, social and governance criteria. In particular, the consortium will follow rigorously the required steps and methodology as well as work closely with all stakeholders prior to project implementation,” the companies said in a statement.

The project will be a JDA with the Gabinete de Implementação do Projecto Hidroeléctrico de Mphanda Nkuwa, State-owned Electricidade de Moçambique (EDM) and Hidroeléctrica de Cahora Bassa (HCB). EDM and HCB will own 30% of the project while the consortium will own 70%.

“The MNK is a great opportunity to bring our technical expertise in hydropower and our strong environmental and social commitment in favour of local communities and biodiversity," said EDF Group international division senior executive VP Béatrice Buffon.

“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,” she said.

“The Mphanda Nkuwa hydropower 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. Sumitomo Corporation focuses on achieving carbon neutrality in 2050. In order to achieve this target and contribute to the realisation of a sustainable society, Sumitomo Corporation will further endeavour to be part of renewable energy projects,” said Sumitomo global power infrastructure business division GM Koichi Taniguchi.

“TotalEnergies is delighted to be able to expand its presence in Mozambique beyond the Mozambique liquefied natural gas project with a large investment in renewable energy, which will benefit the people of Mozambique.

“The MNK is a new example of TotalEnergies’s ability to implement its multi-energy strategy in oil and gas countries to support them in their energy transition,” highlighted TotalEnergies Africa senior VP Mike Sangster and TotalEnergies Renewables senior VP Vincent Stoquart.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online




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