The African Development Bank has approved a loan of $54 million for a 120 MW onshore wind farm (Namaacha) in Mozambique.

The Bank’s loan, is made up of a $12 million from the Sustainable Energy Fund for Africa (SEFA), funding expected from the International Finance Corporation (IFC), U.S. International Development Finance Corporation (DFC), the Emerging Africa and Asia Infrastructure Fund (EAAIF) and the Private Infrastructure Development Group’s Technical Assistance.
The total project cost is estimated at $224.5 million.

Mozambique’s national electricity utility, EDM, will be the sole off-taker from the wind farm, located 50 km west of Maputo, under a 25-year power purchase agreement.

The wind farm will be Mozambique’s first utility-scale wind power project, expected to generate 331.6 GWh annually, supplying affordable, reliable, and clean energy to both local consumers and regional markets, diversifying Mozambique’s energy mix, and improving access to electricity.

It will also position the country as a regional energy hub, capitalizing on increased energy trade through the Southern African Power Pool (SAPP).

With Mozambique’s energy sources currently dominated by hydropower and gas, the Namaacha wind farm project will help reduce annual CO₂ emissions by approximately 71,816 tons, contributing to the country’s commitments under the Paris climate agreement.

The project is expected to support economic growth, job creation, and improve living standards.
During construction, it will create 600 jobs, 120 of this amount, will be for women and 300 for youth.
Once operational, 20 permanent jobs will be created.

Kevin Kariuki, Vice President for Power, Energy, Climate and Green Growth at the African Development Bank, said, “This wind project represents a milestone for Mozambique and underscores the Bank’s strong commitment to advancing clean, renewable energy solutions in the region. It will not only enhance energy security but also facilitate regional electricity trade, benefiting Mozambique’s socio-economic development.”

Wale Shonibare, Director of the Energy Financial Solutions, Policy, and Regulations Department at the African Development Bank said about the technological impact of this milestone project, “as the first large-scale wind energy initiative in Mozambique, this project showcases the transformative potential of renewable technologies to drive sustainable growth. By leveraging Mozambique’s natural resources, we are creating pathways toward a diversified and resilient energy sector that not only meets current demands but is future-proofed to support an evolving economy” he said.

Globeleq is one of the project developers.

Picture: Globeleq

Leave a Reply

Your email address will not be published. Required fields are marked *