Globeleq, a power producer, and the Private Infrastructure Development Group (PIDG), have announced the development of a storage power project at Cuamba, northern Mozambique. The project is expected to bring clean power and jobs to the region.

Globeleq is majority owned by CDC Group, the UK’s Development Finance Institution (DFI) and impact investor. The Ksh. 3.45 billion ($32 million) project marks a major milestone as it will be one of the first IPP grid-scale storage plants in sub-Saharan Africa. The Cuamba Solar project will provide clean energy to 18,000 households and support job creation in Niassa, one of the country’s poorest provinces with an electrification rate of just over 20%.

The project is expected to increase Mozambique’s power supply by adding clean energy to the Northern grid. The project will also help solve network management issues by allowing some of the solar power to be shifted to different times of the day.

The technology for battery storage is nascent and uptake of utility scale solutions remains limited globally. Currently, grants and concessional finance are often required to demonstrate the value of this emerging, but potentially transformative technology.

Globeleq has been actively developing the project since 2019 alongside its local partners, Source Energia and Electricidade de Moçambique (EDM).

The Mozambique Minister of Mineral Resources and Energy, Dr. Ernesto Max Tonela, Nnenne Iwuji, the British High Commissioner to Mozambique and Aud Marit Wiig, the Norwegian Ambassador were key guests at the event.

Commenting on the development of the project, Chris Chijiutomi, Head of Infrastructure Equity, CDC Group noted, “Providing access to power is an essential part of driving economic development across Africa. We acquired Globeleq in 2015 with 1,200MW of operational power plants. Today, Globeleq has more than 1,400 MW operational power plants in 28 locations across six countries, with a further 305. CDC will continue to devote our capital and technical expertise to innovative uses in the power sector, focused on the path to sustainable energy systems for inclusive growth in our Africa markets.”

This commitment contributes to UN Sustainable Development Goals of Affordable and Clean Energy and Climate Action.