As part of the structuring process of the Mphanda Nkuwa project, the Mphanda Nkuwa Hydropower Project Implementation Office (GMNK) is holding, on May 3rd and 4th, two workshops to present the first reports of the update of the Market and Energy Transmission Line Infrastructure studies currently in progress.

The workshops aim to gather input from the different parties involved and interested parties, to better define the project.

GMNK is currently in the process of updating several existing technical studies on the project, which are fundamental for the analysis of the enterprise and critical for the financial modelling phase, as well as the legal and financial structuring.

The Market study aims to assess the conditions of the energy market and is expected to be concluded in the last quarter of the current year. It will determine Mphanda Nkuwa’s energy profile and the amount of energy needed to satisfy domestic and regional demand.

The Energy Transmission study will evaluate the different energy transportation options to determine the most technically and economically viable option for power transport.

Mozambique is a member of the Southern African Electricity Companies Group (SAPP), which drives a common electricity grid for all 12 member states and allows countries to trade power among themselves. The country is the group’s main energy exporter and has an energy transport network interconnected with South Africa, Zimbabwe and Eswatini.

Participants in the workshops include the Ministry of Mineral Resources and Energy, the Cahora Bassa Hydroelectric Power Plant, Electricidade de Moçambique, the Energy Regulatory Authority (ARENE), the National Energy Fund (FUNAE), the Mozambique Transmission Company (MOTRACO) , Zimbabwe Electricity Supply Authority (ZESA), SAPP, South African Electricity Concessionaire (ESKOM), World Bank, African Development Bank (AfDB), International Finance Corporation (IFC), European Investment Bank, the Development Bank of Southern Africa and IDB, among others.

With an estimated cost of US$4.5 billion, the Mphanda Nkuwa Hydropower Project includes the development of a run-of-river dam, located 61 km downstream of Cahora Bassa, on the Zambezi River, in Tete province. A hydropower plant with an installed power generation capacity of up to 1,500 Megawatts and a high-voltage power transmission line of 1,300 kilometres from Tete to Maputo. The project is being implemented in strict compliance with internationally accepted global Environmental Social and Governance (ESG) sustainability standards and tools for mitigation of negative impacts and maximisation of positive aspects, project evaluation and certification, which focus on creating opportunities for local communities, minimise and mitigate adverse impact on biodiversity heritage.

The project will be the least cost option for power generation. It will position Mozambique as a regional power hub and contribute to universal access and industrialization, job creation, technical capacity building and energy export. The Mphanda Nkuwa project will be fundamental to the energy transition process and the decarbonisation of the Southern African region.

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