The Mozambican government has signed an agreement with French company Neoen to build a solar power plant north of the country capable of serving 150,000 people, it was announced during an official ceremony.

The investment is around 50 million euros and will be installed in Metoro, Cabo Delgado Province, and work is expected to start in the second half of 2019, said Max Tonela, Minister of Mineral Resources and Energy.

“The Mozambican government considers this project a priority, ensuring greater security and reliability in the country’s energy supply,” said Tonela, adding that “during the construction phase, the project will create 380 jobs”

Cyril Perrin, director of Neoen in Mozambique, welcomed the work done with the government and local communities since 2015.

This is equivalent to the consumption of 150,000 people and 75 per cent of the needs of Pemba, the provincial capital, and is expected to contribute to the increase in rural electrification, given the growing demand for energy in the northern region.

The plant will also support the Ancuabe and Balama graphite mines and the Moma heavy sand extraction project.

The project will occupy an area of 70 hectares, where various equipment will be installed, including photovoltaic modules that will capture sunlight.

According to information from Neoen, the French Development Agency (AFD) has financed the project, with the company holding 75 per cent of the plant while EDM holds the remaining 25 per cent.

The contract signed on Monday provides for a concession of the state to the new company for 30 years.

According to the company, the project would also inject 52,000 euros per year into the local economy and social initiatives. Source: Lusa