Mozambique has recently made significant progress in its efforts to address the power crisis in the region by choosing strategic partners for a major hydropower project. In a government statement reported by Bloomberg on Friday, it was revealed that TotalEnergies SE and Electricité de France SA have been selected as key participants in the $4.5 billion initiative.
The consortium chosen for this ambitious project comprises EDF, TotalEnergies, and Sumitomo Corp, according to Bloomberg's report. Their combined expertise and resources are expected to contribute significantly to the successful implementation of the venture.
An alternative consortium also submitted a bid for the project. This group consisted of ETC Holdings, Zesco Ltd. from Zambia, CECOT (a subsidiary of Mota-Engil), and PetroSA (a unit of South Africa's Central Energy Fund). Although their bid was not selected, their participation underscores the interest and competition surrounding the endeavor.
The primary focus of this undertaking is the construction of the Mphanda Nkuwa dam, which is projected to have a capacity of 1,500 megawatts (MW). Additionally, an associated transmission line will be established to facilitate the efficient distribution of the generated power. The completion of this hydropower infrastructure is expected to alleviate the power crisis that has plagued the region.
Situated near the existing Cahora Bassa hydropower dam, which currently generates 2,075 MW, the Mphanda Nkuwa dam will not only enhance the region's power supply but also enable the exportation of electricity to neighboring South Africa. The Cahora Bassa dam already supplies over half of its output to the South African market.
According to Bloomberg's report, the Mozambique government has set a target for financial closure on the project in 2024, with an estimated completion date of 2030. The energy partners involved in this venture will need to invest between $500 million and $700 million to make this ambitious vision a reality.
This significant investment in the hydropower sector demonstrates Mozambique's commitment to addressing the pressing power challenges faced by the region. By leveraging the expertise and resources of TotalEnergies, Electricité de France, and Sumitomo Corp, Mozambique aims to secure a more stable and sustainable energy future.