Temporary power and temperature control solutions provider Aggreko is expanding the power generation capacity at Gigawatt Park, in Ressano Garcia, Mozambique, to 232 MW at a cost of more than $200-million, including fuel costs.

Aggreko built the facility at Ressano Garcia with an initial capacity of 110 MW, in 2012, as part of an ambitious project in which it became the first cross-border, interim independent power provider to the Southern African Power Pool (SAPP).

The first phase of the project, undertaken in collaboration with joint venture partner Shanduka, ensured the supply of power to Electricidade de Moçambique (EDM) for national energy requirements in Mozambique, as well as to South African power utility Eskom.

The success of this initial phase has enabled Aggreko to offer additional power to other members of the SAPP.

The new 122 MW gas-fired plant at the Ressano Garcia facility would start production in the second quarter of this year and would supply power for at least two years.

The Matola Gas Company would supply natural gas to the plant, enabling Aggreko to generate power using a subconcession agreement with Gigawatt Mozambique.

Aggreko on Thursday announced that it had signed a tri-party power purchase agreement with power utilities EDM and NamPower, which would use up to 32 MW and up to 90 MW of the additional power capacity respectively.

The agreement followed the authorisation by EDM for the direct supply of power by Aggreko to NamPower.

Both EDM and Eskom would play a key role in delivering the power to Namibia.

EDM would transmit the power over its network to the South African border where NamPower would take delivery. Eskom, on behalf of NamPower, would handle the wheeling of the power across the South African grid to Namibia.

“This new project will make Ressano Garcia the world’s largest cross-border interim power plant, with over 232 MW of gas-fuelled power generation. It underlines the immense potential of the SAPP to be a real conduit of cooperation and development among the countries of Southern Africa.

“The fact that three national utilities are collaborating to support each other’s energy requirements is testament to the benefit of working together for the common good,” commented Aggreko CEO Rupert Soames.