Independent power producer Globeleq has bought renewable energy company Scatec's 52.5% interest in the 41 MW Mocuba solar photovoltaic plant, in Mozambique, for $8.5-million.

It will also acquire Norwegian pension fund KLP Norfund Investments’ 22.5% stake in the plant, giving it a 75% interest in the plant. National utility Electricidade de Moçambique (EDM) will continue to hold the remaining 25%.

Globeleq will become the owner and manager of the plant.

The Mocuba power plant is located on 126 ha in a rural setting about 13 km from the city of Mocuba in Zambezia province, in central Mozambique. The project reached financial close in March 2018 and construction was completed in August 2019.

It generates about 75 GWh/y of electricity that is provided to EDM under a 25-year power purchase agreement.

As part of the transaction, Globeleq will assume responsibility for operations and maintenance and asset management services for the power plant.

Development finance institutions the International Finance Corporation (IFC) and the Emerging Africa Infrastructure Fund are lenders to the project.

“This acquisition will significantly expand Globeleq’s operational footprint in Mozambique where the company is commissioning a 19 MW solar and 7 MWh energy storage project at Cuamba, as well as building a 450 MW gas-to-power project at Temane.

“Globeleq is also leading development of a 120 MW wind project at Namaacha, near Maputo.

"The Mocuba transaction is subject to regulatory and lender approval and is expected to close in the first half of 2024,” says Globeleq CEO Mike Scholey.

Following completion of this transaction and the commissioning of the Cuamba solar plant, Globeleq’s solar portfolio in Africa will be close to 400 MW across South Africa, Egypt, Kenya and Mozambique.

“I am very pleased that Globeleq is continuing to build its presence in Mozambique through the purchase of the Mocuba solar plant. This acquisition, alongside our other projects, demonstrates our commitment to Mozambique and building our renewable power portfolio in Africa,” Scholey says.

“This transaction is in line with our strategy to optimise our portfolio, which includes the divestment of smaller assets in non-focus markets. The sale will release capacity for our focus markets and capital for new investments in renewable energy.

"We are very pleased to secure a value-accretive transaction and are confident that Globeleq will be a solid owner of the asset going forward,” says Scatec CEO Terje Pilskog.