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Lead partner in the Temane Energy Consortium (TEC), Globeleq, has signed a joint development agreement with Electricidade de Moçambique (EDM) to progress the 400 MW Temane gas-fired power project, located in Mozambique’s Inhambane province.
The agreement, which was signed at the African Energy Forum, taking place in Mauritius, this week, outlines that TEC will take 60% of EDM’s shareholding of the special purpose vehicle (SPV) company that holds the Temane project.
To date, Temane has been developed by EDM and Sasol New Energy Holdings, with EDM holding 51% of the SPV, and Sasol the remaining 49%.
The project will supply low-cost, reliable power to EDM through a 25-year tolling agreement using natural gas supplied from the Pande-Temane fields operated by Sasol and ENH, the State-owned hydrocarbon company.
Globeleq and its TEC partner, eleQtra, have proven records in successful gas-fired power projects in Cote d’Ivoire, Ghana, Tanzania and Cameroon. TEC will also provide support to EDM in the development of the Temane transmission project.
“The Temane project will provide Mozambique with significant baseload power to help drive economic growth. As Globeleq enters the Mozambique market, we look forward to partnering with EDM in this exciting venture,” comments Globeleq CEO Paul Hanrahan.
EDM selected TEC in December 2017 as part of a competitive bidding process. EDM chose the consortium because of its experience developing and operating gas-fired power projects; its competitive cost of capital; and its ability to deliver the most competitive tariff.
With the signing of this agreement, the Globeleq-led consortium will officially join EDM in developing the project and bring it to financial close.
EDM chairperson Mateus Magala has welcomed the long-term bankable partnership with the TEC, adding that it will assist EDM in achieving its goal in providing universal and affordable power access by 2030.